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International Travel Insurance Journal ISSUE 47 • DECEMBER 2004 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS Canadian travel hits record high UK liability In an encouraging sign for travel health insurers, car travellers staying overnight. 2003, when Canada was just coming out of its Canadian international travel reached record levels As for travel into Canada, the news was uniformly frightening SARS epidemic, were among the judgement causes in September after languishing in the doldrums for good after many months of depressing data. Japanese, the South Koreans and the mainland several months. Milan Korcok reports According to the Statistics Canada report, an Chinese – who increased their numbers 76 per concern estimated 3.3 million foreign visitors arrived in cent, 56 per cent and 40 per cent respectively. The Coupled with the continuing rise in the value of the Canada in September 2004, up 8.5 per cent over only negatives in inbound travel for September A recent judgement, delivered by the House of Canadian dollar against the US dollar, insurers August. Among them were 2.9 million US 2004 over 2003 were among Germans, Lords in the UK (Chester v Afsharhas), has given servicing the large snowbird Australians, the Dutch, and doctors and their employers – such as insurers and market are optimistic that the the Swiss. assistance companies – reason to rethink their forthcoming season may also see Though the currency practice. records broken in the numbers of differential between Canadian The case revolves around a patient’s claim for retirees heading to their winter and US dollars is always a damages against a surgeon for an operation that homes in the southern US. critical factor in cross-border went wrong. The surgeon’s defence comes under According to the Conference travel, it is particularly acute ‘causation’: simply, that the damage sustained by the Board of Canada, there are for snowbirds, who can spend patient was a common risk for the type of surgery between 400,000 and 500,000 up to six months in the US performed and not a mistake or act of negligence Canadians – mostly seniors – who each year. Many of them have on behalf of the surgeon. spend at least 30 consecutive days homes, condominiums or In a ground-breaking decision, the Law Lords in the US sunbelt – Florida, Texas, mobile homes they maintain essentially decided that ‘the relevant rule is the duty Arizona and California – each in the sunbelt, and the dollar’s of the doctor to warn’. Taken to its extreme, this winter. buying power over a six- means that there is duty to warn about every and According to recent government month stretch in terms of any danger that might be associated with any medical statistics, Canadian residents made taxes, fuel, maintenance, procedure. Taken further, although somewhat almost 3.5 million trips abroad in groceries, clothing, ludicrous, it would appear that failure to warn a September 2004, 4.3 per cent restaurants, and golfing fees patient who is being repatriated that travelling in an more than in the previous month, makes a big difference to their aircraft could cause them to catch a cold or another and the first increase since April household budgets. infection via the air conditioning system or even 2004. That 3.5 million is also 4.7 Analysts note that three years exposure to other passengers, could be held against per cent more than in September ago, when the Canadian the doctor/assistance company/insurer. But it doesn’t 2003. dollar was worth about 62 US stop there. It Of this September total, 499,000 cents, snowbirds were taking would appear from trips were to countries other than the US, up 10.8 residents, up 9.3 per cent over August. Most of that fewer trips into the US and their stays were shorter. the judgement that per cent from the previous month and an all-time gain was due to same-day car travel, which Now that the Canadian dollar is edging toward 80 even if you were high. That is 15.2 per cent higher than September rebounded from a record low in August. Overnight US cents, their stays are expected to be longer and to warn your 2003. travel by Americans into Canada rose by a more that is good news for travel health insurers, who patient or client of At the same time, travel to the US increased 3.3 modest 1.6 per cent. can expect to sell longer-term contracts. these risks, you per cent as nearly three million Canadians headed In addition, about 356,000 travellers from countries Most Canadian out-of-country travel health can still be held south in September 2004. Same-day car travel – in other than the US visited Canada in September insurance plans are priced according to the age of liable if it can be and out of the US in one day – went up 4.3 per 2004, up 2.8 per cent in August and 31.4 per cent the traveller, the traveller’s general health status, proven that they cent in September over August, but there was a 6.7 more than September 2003. The most robust and the number of days the traveller expects to be didn’t really per cent deficit over that same period in Canadian inbound travel increases in September 2004 over out of the country. understand the risks about which you told them: the definition of which is ‘informed consent’. Clearly, all parties involved within the travel Travel agents bully buyers insurance industry in the UK must review and ensure their procedures are modified to cope with Sainsbury’s Bank in the UK says that some travel insurance from travel agents over Michael Liddell, Travel Insurance this ruling. The ruling is so wide, though, that it is agents are ‘bullying’ travellers into buying the agent’s the past 12 months said they Manager at Sainsbury’s Bank, said: difficult to see how anyone could completely cover own insurance and other agents are giving were told they could not book “Our research findings are disturbing themselves for all the possibilities. misleading information about insurance. According their holidays unless they took because they show that some travel Common sense would seem to show that the to Sainsbury’s, people should ‘watch out for out the cover being offered by their agents. agents are either intentionally or unintentionally judgement could or will quickly become unscrupulous travel agents which use underhanded The bank’s research also, worryingly, showed that misleading customers when selling insurance and, in unworkable. However, that will require a further and misleading tactics to pressurise people into about 15 per cent of those who have purchased cover some cases, using pressure tactics to help close the deal.” judgement or clarification by the courts and, in the buying their travel insurance policies’. from travel agents this year said they were not asked The bank advises people to stand their ground and meantime, doctors, hospitals, assistance companies, The bank carried out a survey of 1,000 adults, asking about pre-existing medical conditions, and a similar not be bullied. If a travel agent insists you purchase insurers et al, may find themselves in the middle of questions about travel insurance. The survey showed: number said their travel agents did not explain what its insurance policy before it can sell you a holiday, a shooting gallery as far as liability claims are six per cent of those who claimed to have bought their policies covered. find another travel agent, they say! concerned. 2 NEWS

Automatic travel Mickey Mouse pulls in the punters insurance slammed Despite Florida’s hurricanes and protracted, and Florida) was primarily driven by higher theme divisive negotiations with theme park attendance, hotel occupancy and guest ITIJITIJ The Trainline, an Internet park workers, Walt Disney Co., spending. International Travel Insurance Journal booking service in the UK, finished its fiscal fourth quarter In addition: “Higher visitation at Walt Disney World has come under scrutiny with a buoyant flourish, surging from both domestic and international tourists as from the Rail Passengers past analysts’ predictions to well as Florida residents reflected the continued WHAT’S IN Council (RPC) for post a 24 per cent profit success of SPACE, Mickey’s Philharmagic and automatically charging increase. By Milan Korcok Disney Pop Century Resort and improvements in customers £1 per trip for travel and tourism,” said Disney’s financial report. THIS ISSUE? travel insurance. In what Disney CEO Michael It also noted that increased guest spending was The government-funded Eisner called ‘An outstanding year driven by higher ticket price increases and less RPC has written to Trainline for The Walt Disney Company’, discounting. to ask them to explain why the world’s number two For the fourth quarter, increased guest spending at REGULARS the charge is by default, entertainment company reported Walt Disney World in Orlando mostly offset instead of being an option for higher fourth quarter earnings decreased attendance due to the temporary park News 1 passengers to choose – as it and record cash flow for the fiscal closures during Florida’s August and September Grapevine 6 should be an ‘opt in’ rather year ended 30 September 2004. hurricanes. than an ‘opt out’ addition. The California-based company Besides the hurricanes, Disney also dodged a bullet Spitzer news 7 Anthony Smith, RPC’s claimed net income of $516 when Disney World’s unionised workers narrowly Company brief 8 National Director, said: “It’s million or 25 cents a share, up approved labour contracts that had been embroiled Insurance matters 9 simply not right. I have grave from $415 for the comparable in divisive negotiations for over eight months. The Health matters 13 doubts about whether a quarter last year. The company’s six unions involved in the consolidated negotiations Editorial comment 14 public service should be selling insurance this way.” financial statement noted that results improved at included hotel and restaurant workers, teamsters, The Trainline is owned by Virgin, with 86 per cent, every segment of its dish washers, bus Travel matters 16 and National Express. It has a licence from the operations (parks and drivers, hotel maids News analysis: Association of Train Operating Companies (Atoc), resorts, media and even the Insurance scandal grows… and grows 26 but is not subject to any government regulation. operations, consumer costumed characters World markets: Czech this out! 30 Columbus Direct Insurance provides the travel products) except who play Mickey Hot spots 32 insurance policy that people are often unwittingly studio operations (the and Minnie Mouse. Letters 32 purchasing. The policy provides £10,000 personal movie business). The new three-year injury cover and up to £500 for the cancellation of At the parks and contract guarantees Dick’s hotline: Mexico revisited 34 a trip, but the RPC questions whether this is really resorts division, pay rises and Service directory 36 required by passengers going on a short journey. revenue for the last increases in Smile corner 42 Mark Furlong, Commercial Director of The quarter rose 31 per healthcare Diary dates 42 Trainline, said: “The cover is pretty good, it’s only cent to $2.2 billion, premiums for over On the move 42 £1. If you have tickets for the theatre and your while operating 20,000 employees. train’s cancelled you’re covered.” income increased by Though the contract Contributors 43 It is suggested that around 30 per cent of people 25 per cent to $282 was ultimately take out the insurance. million. Parks and approved, large “We have received very few complaints from resorts revenues for numbers of workers FEATURES customers on either the policy content or the way the year increased 21 felt they had been in which it is offered,” said Mr Furlong. per cent to $7.8 outmuscled just Vienna ITIC conference review 18 When ITIJ contacted Columbus Direct, Paul billion. when they could includes ITIJ awards ceremony results Dittmer from the company, said: “As you know, we The consolidation of least afford to fight – Sex tourism uncovered – Part two 24 are just the service provider in this instance for Euro Disney and Hong prior to the Have urge, will travel Trainline. They are addressing this matter directly Kong Disneyland Thanksgiving and with the Rail Passengers Council and we await the contributed $715 Christmas holiday outcome.” million of the increase period when ITIJ TEAM in revenue and $64 household budgets Editor-in-chief: Ian Cameron million of the increase are already stretched. Editor: Richard Forsyth in operating income Ratification of the for the year and $383 million and $49 million of the labour contracts ended any possibility of a strike at Deputy-editor: Sarah Lee Stranded in Reunion increase in revenue and operating income for the Disney resorts for at least three years. Editorial assistant: Leonie Bennett quarter respectively. This is good news for management, shareholders Designers: Eli Butler The quarterly report noted that revenue and and the increased number of domestic and Chris Marke Several hundred tourists found themselves stranded operating income growth at the Walt Disney World international tourists predicted to visit the theme on France’s Indian Ocean tropical island of Reunion Resort (which includes theme parks in California parks in coming months. US correspondent: Milan Korcok on 27 November after regional airline Air Bourbon India correspondent: Saby Ganguly went bust, cancelling all flights. The airline failed to Legal correspondent: Dick Atkins organise a rescue plan with the regional government and subsequently shut down its Conference manager: Denise Clements operation. Handle without care Production: Adele Brown Around 1,000 passengers were booked to fly on Production assistant: Helen Watts Air Bourbon's four scheduled flights in the week The Federal Aviation Administration (FAA) after the announcement, 80 per cent of this has come under fire for its handling of the Advertising sales: Vernon Harman David Fitzpatrick number comprising of tourists. inspection of hazardous materials shipped An angry crowd of around 250 people had aboard airlines, according to a report by the Finance: Pauline Lloyd Helen Parker accumulated to greet Air Bourbon President Erick US Transportation Department on 26 Lazarus when he came to the airport terminal to November. Cartoonist: Chris Duggan explain the dire situation, and unsurprisingly he was The report stemmed from an investigation met with shouts of derision. into the 1996 ValuJet crash in the Everglades, FREE SUBSCRIPTIONS FOR Meanwhile Air France, Corsair and Air Austral responsible for the deaths of 110 people. An TRAVEL PROFESSIONALS agreed to take on anyone marooned in Reunion or illegal shipment of oxygen generators in the mainland France for €300 plus airport taxes. cargo hold was found to be the cause of the There are accident. ITIJ problems with Commenting on availability, whether the situation Voyageur Buildings however, as had improved since this through and also there was a need to check that 43 Colston St many flights accident the report stated: such material, when being transported, was being Bristol BS1 5AX UK from Reunion “The FAA’s enforcement of handled correctly. to Paris are hazmat regulations has been In a final judgement levelled by Assistant Inspector editorial: +44 (0)117 922 6600 fully booked – in flux.” General Alexis Stefani, the FAA takes too long to advertising: +44 (0)117 925 5151 due to it being The report went on to say enforce hazardous materials cases and is inefficient. fax editoial: +44 (0)117 929 2023 high season that there was a lack of Diane Spitaliere, spokeswoman for the FAA, fax advertising: +44 (0)117 925 2040 for tourism on covert testing to ensure defended against the accusations by saying they had email: [email protected] the island. undeclared hazardous started action to improve the inspections before the web: www.itij.co.uk material was not slipping report was published.

International Travel Insurance Journal www.itij.co.uk

4 NEWS

Rocketing to regulation Asian markets open Bus bandits strike up for Spain tourists

A new air agreement reached in November opens A bus carrying US tourists in the Dominican the way for the world’s second biggest tourism Republic was hijacked by hooded gunmen. market, Spain, to be reconnected with East Asia. Two armed men boarded the bus after forcing the David Ing explains driver to stop. They threatened the tourists with Uzi guns before stealing their personal valuables Direct flights with China, which is forecast to from them, amounting to thousands of pesos become the world’s leading destination by 2020, worth of goods. are expected to start by spring 2005. Links The bus-jacking occurred on 23 November, on the between Spain and emerging outgoing markets in highway that leads to Villa Elisa in Puerto Plata as Asia have been via other European cities since the tourists returned from a trip to Cayo Arena. Iberia pulled out of Japan a few years ago. Gunter Manni, owner of El Paraiso Tours whose Even these have not always proved successful, with bus fell foul to the bandits, said that after the Singapore Airlines dropping its three weekly passengers were robbed the gunmen fled into the connections because of low occupancies this mountains on foot and are still at large. autumn. But while Spanish flag carrier Iberia has Manni said this was the first time in his company’s six failed to take up existing rights to fly between Spain year history that such an attack had occurred and he and China, smaller rivals are eager to get started. implored the Ministry of Tourism and the National Both Air Europa and Air Plus Comet, part of the Police to assign better protection for tourists. Marsans group, have said they hope to take After the successful flights in October of a privately only required that space tourists be informed of the up the new inter-governmental agreement financed manned rocket over the Mojave Desert in associated risks of their mode of travel; but this new for 21 frequencies a week and begin flying California, Republican Dana Rohrabacher brought a bill – following negotiations between the House by next May. Each says it is looking initially bill to the House of Representatives in the US that Science Committee and the Senate Commerce at launching two or three flights between would give the Federal Aviation Administration (FAA) Committee – would allow the FAA to issue regulations Madrid and Beijing, and they could follow authority to regulate commercial human spaceflight. to protect passengers and crew, but not until eight up with links to Shanghai and other cities. The bill, passed on 20 November, could mean that years after enactment of the bill. The FAA might, The two airlines also plan to use Madrid paying passengers will be able to blast into space on however, be able to issue regulations before this time as a hub for connecting with their existing such rockets in the not-too-distant future. if someone should be seriously injured or killed or an networks to Latin America. Already, British entrepreneur Richard Branson has unplanned event occur on a private space flight. With China having already overtaken announced plans to offer commercial space flights “After being informed of the risks, people can and Japan as the leading Asian outgoing to those that can afford the six-figure price tag by should be able to decide to buy a ticket and achieve market, Spain hopes to benefit from 2007; and thrill-seekers have already begun putting their lifelong dream of flying into space,” said recent agreements easing visa regulations down deposits. Rohrabacher. But this wasn’t enough for some for Chinese tourists visiting Europe. This latest bill, however, brings those dreams one step Democrats, who feel that a fatal accident should not However, even with the prospect of closer to reality, being passed by a 269-120 vote – but be the catalyst for federal regulation. Rohrabacher increased trade boosting business traffic, only after a contentious debate over how much contends, however, that too much regulation no Chinese airlines have yet committed: protection law-makers should provide potential space would “strangle this industry and drive these “Although they have shown interest in tourists. An earlier version of the bill, passed in March, entrepreneurs offshore.” collaborating with Spanish companies,” said a Development Ministry spokesperson. Iberia, which currently channels most of its Asia- bound passengers through oneworld alliance British tourist found partner British Airways, says it plans to start flying to China in 2006, giving it a year to evaluate how the dead in outback market develops. A 52-year-old British tourist was recently found dead in the Outback in central Australia after disappearing from a hotel bar at a resort complex at Yulara, close to Uluru (Ayers Rock). By Roger Allnutt

Ethel Hetherington from the UK was travelling with two companions who left her in the bar during the evening to return to their hotel unit, and raised the alarm the next morning when she had not returned. Her body was found about 42km (26 miles) away from the resort on a remote dirt road leading to the Mutijulu Aboriginal Community. It appears that Mrs Hetherington visited the community after being driven there by locals. After spending some time with them, she decided to walk back to Yulara. It appears that she became lost and took a wrong turning along the Old Petermann Road, walking in temperatures well over 30 degrees Celsius before apparently collapsing and dying from heat E111 form to change exhaustion and exposure. Aboriginal trackers were able to track most of Mrs The Department of Health in the UK is reminding Hetherington’s movements along the remote track. travellers of changes to E111 travel forms, following Once again, this tragedy has highlighted the dangers the introduction of the new European health inherent in the Outback, where it is easy to quickly insurance card in some EU countries. become disoriented and also highlights the UK residents will continue to be entitled to free, or necessity to have proper clothing and water reduced cost, state-provided healthcare when supplies when walking (or driving) in the desert. visiting an EU country, but need to submit an application for an updated form. Anyone planning to travel to the EU in the next few months or during 2005 should apply for the new E111 – older versions are only valid until the 31 December 2004. The new form is now issued on an individual, as opposed to family, basis. However, it will only be necessary to complete one application form in order to receive E111s for each family member. The new E111 form will be valid until 31 December 2005 and by the end of 2005, the E111 will be replaced by the European health insurance card.

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

Weather leads to Slippery slopes travel chaos A study by the Post Office in the UK has revealed that more than 40 per cent of Britons on winter Severe weather conditions caused havoc with travellers sports holidays have inadequate travel insurance. in parts of the US, specifically Colorado, Nebraska and The study of 1,000 people also found fewer than 50 Dakota, as thousands of holidaymakers were delayed per cent knew whether their policy covered the with the storms and snowfall at the end of November. hazards likely to be encountered on ski trips. Thirty As Americans attempted travel, many to celebrate per cent of ski/winter sports claims last year were for the Thanksgiving holiday, the weather worsened, medical costs, with the average cost being £700 and making roads virtually impassable and causing long the highest £150,000. delays at airports. Airline passengers were stranded According to the Post Office, winter sports at Reno-Tahoe International Airport and flights were accidents happen most frequently in Andorra, delayed in Boston, Massachusetts, New York and France and Italy. Philadelphia, as well as Pennsylvania. The insurance industry is keen to encourage people Conditions were so serious that in South-western to take out adequate cover for their winter sports Colorado, a plane carrying six people crashed on take- trips and the Foreign Office’s Know Before You Go off on Sunday 28 November, killing two on board. campaign tells people that ski slopes are among the The weather also got the better of Northwest five sites where travel-related injuries are most likely Airlines Flight 1933, a DC-9 with 90 passengers on to occur. board, as it slid off a runway when it landed at Islanders stranded China air crash kills 53 Lansing’s Capital City Airport in Michigan. Despite these incidents it was still the snow-clogged People living in the Channel Islands off the UK have Fifty-three people were killed on 21 November roads that were seen as the real potential for been warned to check their travel insurance when a China Eastern Airlines plane exploded danger, and drivers faced being stranded in remote policies to ensure they are covered for connecting shortly after take-off, plunging into Mongolia’s areas. Road trips were discouraged as snow flights to and from the Islands. Nanhai Park. Eyewitnesses said the plane appeared reached two feet deep in some areas, such as on A spokesperson for Norwich Union said many people to be flying erratically before exploding in a ball of interstate 70 in Colorado. did not know that their connecting flights from the smoke and flames less than a minute after taking off “I’m more concerned about people on the islands were not covered. She advised people to check for Shanghai at 8.20A.M. highways than I am people in the airways. We have their polices and try to find an insurance company that All 46 passengers, six crew and a park worker on one storm moving off the East Coast and another would allow people to pay an extra amount to the ground were killed in the accident. The death moving across the Central Plains – that’s the one specifically cover the Channel Island journey, so if they toll on the ground would more than likely have that is going to cause all the problems,” Orelon missed a connecting flight due to weather conditions in been a lot higher had the park not been closed for Sidney, a CNN meteorologist said. the island, they could claim for it. winter. It seems that insurance companies After exploding in mid-air, the CRJ-200 aircraft, have been classing Jersey and the rest made by Canadian company Bombardier, crashed of the Channel Islands as part of the into a frozen lake in the park in Bautou City, UK and all flights to the UK as internal. northern China, damaging a house and several Their policies do not cover internal or yachts. Police, firefighters, and a team of hundreds domestic flights when there is an of rescue-workers and divers had to break the ice onward journey from the UK; on the lake in order to retrieve the victims. The meaning islanders are thinking they are black box has not yet been found. This was China’s insured when travelling to catch first serious air accident in over two years, and the another flight. But, if onward journeys cause of this crash is still being determined by are missed due to a problem with the investigators. Jersey or Guernsey leg, travellers are According to Guangzhou-based Nanfang Daily, the repeatedly finding they are unable to crash has lead to a mini boom in the purchase of make successful insurance claims. travel insurance. Statistics from the civil aviation Top five ski injuries: department show that approximately only 50 per (taken from a sample of 400 cases) cent of airline passengers bought travel insurance 1 Knee ligament injuries (30 per cent of all cases) before this disaster – in fact, only half of the victims 2 Fractured tibia onboard had taken out insurance – but since the 3 Fractured/sprained wrists Philippines typhoon causes devastation crash, sales have rocketed to about 80 per cent of 4 Back injuries travellers, according to China Radio International. 5 Dislocated shoulders In a continuation of this year’s typhoon season, vessels below 1,000 tonnes from sailing. which has seen some of the worst and highest Previously a tropical storm, Muifa strengthened Top six destinations where ski injuries occurred: incidence of typhoons on record, the latest victims to a typhoon overnight and peaked with winds (1999-2000 season) are the people of the Philippines, where Typhoon of up to 120km per hour. 1 France 45% Muifa is devastating the southern provinces. Three people have died so far in the 2 Austria 19% Landslides and floods, which are blocking roads and devastation and many more have been injured. 3 Italy 18% sweeping away houses on islands like Catanduanes, With hundreds of houses destroyed, the 4 US 11% are hampering relief work and causing extensive government is continuing its relief operations 5 Switzerland 4% power cuts. Nearly 3,000 commuters were and is poised to come to the aid of the main 6 Canada 3% stranded at ferry crossings between Bicol and the island of Luzon, where Muifa is headed next. central islands after the coastguard barred sea Above data from the Foreign Office website

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

TSA baggage handlers Electronic shield to Back-up systems test Australian embassy arrested for theft end shark attacks bomb suspects The ability of London’s financial marketplace to function after a terrorist attack was tested at the A new system to protect night surfers could end of November. arrested potentially save insurers the cost of soaring medical Banks, insurers, exchanges and regulators were put expenses due to shark attacks. to the test by a committee of financial regulators Four members of the militant group blamed for The shields, powered by nine battery-operated who wanted to check the back-up computer and killing 11 people in a suicide car bombing at the devices that emit shark-repelling electronic waves, communications systems of major financial Australian embassy in Indonesia on 9 September were attached to a 40-metre line and suspended a institutions in the case of an attack like the ones have been arrested, say police officials in Jakarta. metre below the surface to protect 80 surfers seen in the US in September 2001. The test was The men in custody are believed to be members competing in an evening contest on Queensland’s part of an effort to improve the City’s ability to of the al-Qaida-linked Islamist terror network Gold Coast in Australia. cope with a major event or disruption on the scale Jemaah Islamiyah, which is also believed to be Organisers feared the brilliance of the lights used at of the US attacks, which closed the New York responsible for the Bali bombings in 2002 and the the venue would attract sharks and so the shields Stock Exchange for a week. Marriott hotel bombing in Jakarta in 2003. In the US, more than 60 government baggage formed an extra line of defence on top of About 40 investment and retail banks and insurance Three of the four men were arrested on 5 screeners at 30 airports have been arrested for conventional shark nets. companies took part in the trial, according to the November at a house in Bogor, 25 miles south of stealing. The Transportation Security Administration According to experts: “The ground-breaking device Financial Times, and they were not told what kind Jakarta, and include one of the mastermind’s senior (TSA) screeners were caught on video-tape stealing could seriously change the base of professional of scenario would be simulated. The last such test, lieutenants, Iwan Darmawan. He was instrumental items such as gold jewellery from personal luggage. surfing.” now due to take place annually, concluded that in the planning of the operation and prepared the The TSA has subsequently come under a great deal there was no need for additional statutory hiding place for the perpetrators, purchased the van of criticism and airports are regulation of the financial system in used in the bombing, and procured some of the now hiring private security the event of an attack. explosive equipment used. contractors to handle the However, the task force stressed that The main perpetrators are still on the run, baggage screening there was a need for ‘preparation and however, and are British-educated Malaysian operations. Over 20 airports coordination’ between regulators, as scientist Azahari Husin, the mastermind behind the are said to be reorganising responsibility for the response to an attack, and fellow countryman Noordin Top. Dr who handles their baggage. attack would be shared. Primarily: the Azahari allegedly escaped capture after bribing To date, the TSA has settled Bank of England is responsible for the officers who had arrested him for a traffic offence. 15,000 passenger claims of overall stability of the financial system; Australia’s foreign minister, Alexander Downer, theft by screeners and has the Financial Services Authority (FSA) congratulated the police for the recent arrests, paid out a sum of $1.5 regulates the state of individual stating: “We welcome the work that the Indonesian million in damages. companies; and the Treasury national police are doing now in following up the Security Administration maintains contacts with other various leads that have become available. They spokesman Mark Hatfield government branches and monitors have been vigorous in tracking down and trying to defended the organisation by the state of the gilts market. bring to justice those responsible.” saying: “These numbers, Although banks and insurers have when you look at the overall their back-up systems tested regularly scope of how many airports by the FSA, these desk-based market- we're in, how many bags are wide trials ensure the entire financial being screened each day, it's system can coordinate and function Rescue mission on substantially very small.” given a worst-case scenario. blazing Chinese ferry

GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE• GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAP Chris Wales reports on the latest ferry disaster in China GRAPEVINE A Chinese car ferry travelling from Yantai in Shandong province to Dalian in Liaoning province caught fire on 16 November; the 283 passengers Kids keep fit Feeling the pinch Roast locust and 49 crew were all safely rescued. Lloyd’s List reports that the ferry was carrying 78 cars. The plagues of locusts swamping parts of Australia, This accident comes almost to the day and place of A revolution in kids’ entertainment is taking place in Segregating train carriages according to gender in the Middle East and Africa are some of the worst China’s worst coastal shipping disaster, which the UK. In an effort to keep youngsters not only China has not made a difference to the seen in 30 years. But two agricultural officers in happened on 24 November 1999 killing at least entertained, but to get them into shape, holiday extraordinarily high number of women New South Wales are looking on the bright side and 150 people, with a further 126 declared missing. camp operator Club Beaumont has teamed up with complaining about men pinching their bottoms encouraging people to eat the pests, according to On that occasion, the ferry – The Dashun – had Italian fitness firm Panatta to design a new gym while aboard. Many women are, therefore, now the Daily Telegraph. They have even published a been heading for the port of Dalian but was forced facility at each of its five camps that will incorporate calling for completely separate trains for men and recipe book called Cooking with Sky Prawns that to turn back to Yantai by gale-force winds and both equipment and group activities. women. contains such delicacies as chocolate-covered gigantic waves. The holiday firm said that the move comes as part According to a UK report in The Times, a survey locusts, locust-flavoured popcorn, and a special stir- At about 4:40 P.M. distress signals were sent out by of the government’s plan to help reduce obesity by China’s largest train operators has revealed fry recipe named after one of the local towns worst- the vessel when a fire erupted. The vessel stared levels amongst children. that 64 per cent of women in their 20s and 30s affected by the plague. breaking up four hours later and was found Commenting on the plans, Marketing Director had been molested on public transport. The One of the authors is quoted as saying, “If you’ve stranded at 11:45P.M. Reports at the time said the Jonathan Barber said: “We are very aware of the newspaper reported that the problem has been eaten a lobster, crab or crayfish, you’ve already eaten fire broke out on the car deck, caused by the high government’s and parents’ concerns about obesity around for decades, despite authorities imposing Arthropoda, of which insects are a part. So popping a waves bumping oil tanks and batteries generating and children’s lack of exercise and believe the gyms a possible seven-year prison sentence for big, juicy locast in your mouth is only a step away.” sparks. All 40 crew members died. will play an important role in our commitment to offenders. After you… encourage children to choose a healthy lifestyle.” From stable to Settling old debts negative In Oslo, Norway, the director of a hotel received a former lifestyle and signed handwritten anonymous letter with an apology for off: “One who wants to The rating service Standard & Poor’s has revised its not settling a hotel bill in 1980, accompanied with a make good, and hereby outlook on the US property/casualty commercial 500 kroner note. has.” lines sector to negative from stable. A former guest of the Clarion Hotel Ernst in the Johnsen, amazed by the “The outlook revision follows allegations of southern town of Kristiansand had obviously been good deed, commented: widespread misconduct in a civil complaint filed by rattled with his dishonesty for 24 years. Hotel “He is forgiven, and the New York State Attorney General on 14 Director, Kay Johnsen, said: “I’ve never seen probably by higher powers October 2004,” explained Standard & Poor’s credit anything like it.” than us!” analyst John Iten. “Standard & Poor’s expects that The note explained that the sender had stayed at The hotel gave the 500 this investigation will result in lower revenues and the hotel in the autumn of 1980, had some food kroner note to the Salvation higher expenses for many insurers, casting doubt and drink on his hotel bill and left without paying. Army’s Christmas collection on prior expectations of ratings stability and ongoing

The writer of the letter blamed his actions on his drive. improvement in profitability for the industry over VINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVIN EVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPE the medium term.”

International Travel Insurance Journal www.itij.co.uk NEWS 7 ...... SPITZER...... Loss of contingencies Spitzer probe expanded to health, will crush earnings disability and benefits lines

Abandonment of the contingency commissions In expanding his probe of insurance industry property and casualty insurance have taken root targeted in the Spitzer investigation is going to kickbacks and bid-rigging, New York Attorney in the employee benefits market as well. leave ‘a gaping hole’ in the bottom line earnings General Eliot Spitzer has filed suit against “What is particularly egregious in this case is that of brokers who have become accustomed to this Universal Life Resources (ULR), a leading the costs of ULR’s concealed payments were now discredited source of revenue, says a newly California-based broker that specialises in ultimately borne by individual employees who released study by WFG Capital Advisors, a leading developing employee benefits, life, disability and were in no position to know about or contest investment advisory firm based in Harrisburg, accident insurance plans for large national these illegal practices.” Pennsylvania. By Milan Korcok corporations. By Milan Korcok The complaint also alleges that ULR received about $11.5 million of its $25 million in 2003 According to Steven Wevodau, Managing Principal The suit alleges that ULR received lucrative payoffs revenue from so-called ‘override’ payments from of WFG, the impact of these losses on tax-affected for steering business to certain insurers at the insurers. These are supplemental payments by income will represent over 25 per cent of brokers’ expense of higher premiums for employees insurers to have brokers send business their way. composite earnings. working for its client companies. It also seeks They also received an additional $5.6 million in “This astounding statistic underscores the vital restitution for some four million employees at some secret, above-market value fees for nature of contingents and the presumed impact to of the nation’s largest companies who have been communications services such as printing of the industry’s leading segment,” says Wevodau, forced to pay higher premiums on account of the informational materials, which were ultimately paid adding: “At a time when product rate declines are payoffs and rigged bids. off through premiums. These secret payments, said JLT hit by Spitzer severely punishing most firms’ organic growth, the The civil complaint filed in State Supreme Court in the Spitzer complaint, accounted for more than relinquishment of this significant revenue stream Manhattan alleges that ULR received millions of two-thirds of ULR’s revenues in 2003. campaign presents an ominous outlook to the economic dollars in undisclosed fees from large insurance Spitzer further alleges that ULR hid these welfare of leading brokers.” companies, among them agreements from its clients by falsely representing Shares in the UK’s largest insurance broker Jardine Robert Lieblein, WFG MetLife, Prudential and its compensation, omitted its fees from mandatory Lloyd Thompson (JLT) have slumped dramatically Managing Principal, noted Unum Provident for placing government filings, and refused to deal with insurers after the firm issued a profits warning. This came also that it is not only larger coverage with employees of who would not concur with its concealed after Eliot Spitzer, New York’s Attorney General, brokers that will be affected companies such as Viacom arrangements. New York State Insurance sued the US giant for alleged bid rigging in October. by the loss of the and Intel among others. Superintendent, Gregory V. Serio, said: “The New The unexpected drop in insurance prices and the contingency payments. “Today’s case demonstrates York State Insurance Department has charged the weak dollar have prompted JLT to revise profit “Contingents flow right to that the corrupt practices defendants with fraudulent, coercive and dishonest forecasts down from £117 million to £92 million, the bottom line of any firm, first laid bare in the Marsh business conduct in the New York insurance according to the company. Shares in JLT fell over and elimination of such a (Marsh & McLennan) suit market, which has affected the price of insurance.” 20 per cent in value, down 94.25 pence at 365.75 significant component would are present in additional ULR’s major clients since 1999 include Intel Corp., pence after the news. erode many small to middle- sectors of the industry,” said Colgate-Palmolive Co., Eastman Kodak Co., As a result of this announcement Chief Executive sized firms’ ability to Spitzer. “Secret payoffs and Marriott International Inc., United Parcel Service Steve McGill has resigned, with Chairman Ken continue to meet market conflicts of interest that Inc., Viacom, and Dell Inc. Carter taking over at the helm for up to two years demands and competition. infected the market for until a new boss is found. “Any time you cut 25 per cent out of the profit margin of any business, you greatly impair its ability to re-invest Fine sailing offshore in growth and infrastructure while sustaining risk-based sustainability to weather One growing stumbling block to the regulation of XL Capital Ltd., Mid Ocean Re and the cyclical nature of the brokerage market.” insurance companies and brokers is their flight to Axis, while Aon has sponsored LaSalle Lieblein said that the only option available to high offshore havens, Attorney General Eliot Spitzer told Re and Endurance, said Spitzer. performing firms is to supplement lost income the Senate subcommittee investigating insurance This sets the stage for conflicts of through aggressive acquisitions. “There is a lot of industry misdeeds. Milan Korcok has the details interest, steering and self-dealing in speculation on rate trends and if January insurance and reinsurance markets that reinsurance contracts are where we suspect that “Since 2001,” said Spitzer, “there has been a we are just beginning to understand, they will be, major brokers will struggle to fill reported huge transfer of insurance capital and he said. “And this is not to mention the sizable revenue and earnings gaps.” underwriting activity to Bermuda, and more numerous and profound tax He added that many brokers will be forced to re- recently the Cayman Islands. Many of these implications of permitting US insurers evaluate their business models and take drastic offshore entities are either owned in part or to accrue investment earnings in measures to appease shareholders’ demands for operated by the insurance brokers themselves.” favourable offshore havens.” enhanced earnings despite the losses. He noted that some brokers have invested in groups Spitzer has asked for Congress and the The study was based on a survey of the industry’s based in Bermuda and then acted as brokers to Securities and Exchange Commission to investigate urged a stronger role for the federal government in top seven brokerage firms. those firms – another potential source of revenue. the implications of insurers locating their operations monitoring offshore capitalisation and investment by Marsh helped to create the Bermuda-based Ace Ltd., in Bermuda and other foreign countries, and has insurance companies. …see also News analysis – Insurance scandal grows… and grows, p.26

www.itij.co.uk International Travel Insurance Journal 8 COMPANYBRIEF

World Access Quoting right provides for Gate 1 US-based online travel insurance marketplace www.quotewright.com has announced a business Gate 1, an international travel organisation based in partnership with CSA Travel Protection. the US, has selected World Access as the exclusive Commenting on the new addition to their search travel insurance partner for its tour packages sold engine, Quotewright President John Cook said: directly, online and through travel agents. “Adding this relationship gives our clients access to “Gate 1 remains mindful of the various needs of the very comprehensive CSA protection travellers, especially those relating to service, flexibility plans…Consumers have another option when and security. We decided to provide World Access visiting our site to compare plans, side by side.” travel insurance and assistance because they are flexible, convenient and affordable, providing the highest level of service,” said Dani Pipano, President of Gate 1. Senior Vice President of Sales and Marketing for First choice World Access, Beth Godlin, said of the arrangement: Health and wellbeing services provider FirstAssist “Gate 1 is a superior international travel organisation, has won the contract to provide UK building focused on quality and customer service. World society Bradford & Bingley plc with a total travel Air ambulance MMA gets technical Access has a similar vision – to provide high quality insurance and medical assistance solution. service at an excellent price, so we are pleased to Commenting on the deal, Nigel Aspin, Group partner with such an impressive organisation.” General Insurance Director of Bradford & Bingley, alliance MMA Insurance plc, the intermediary only insurer, is said: “This contract gives us the opportunity to establishing a specialist technical underwriting unit expand and enhance our travel insurance Skyservice Lifeguard Air Ambulance, based in within its operation as a dedicated technical referral proposition, ensuring we continue to offer our Montreal, Quebec, and Flight Ambulance point for brokers and intermediaries. Pass the policy customers first-class products and services.” International (FAI), based in Nuremberg, Germany, The unit will be piloted initially with selected brokers announced plans in November at the International whose business volumes with MMA justify the Purchasing a season ski pass is a hefty Travel Insurance Conference (ITIC) in Vienna to additional level of support. Ian Page, MMA’s expenditure for a lot of people – with some form the AAA Air Ambulance Alliance. Commercial Underwriting Manager, said of the unit: resorts charging up to $1,800 in the US – The Alliance will offer the travel insurance “We know from our dealings with brokers that especially when the possibility of accident or Medical screening community and commercial airlines a worldwide, there will always be cases which are not black and injury might prevent you from using it to its one-call critical care transport option either via white and where referral to an underwriter is full capacity. So, Ron Iverson, from an Travel insurance provider Citybond dedicated air ambulance, commercial airline required. The aim of the unit is to provide brokers insurance company in Montana, Suretravel has recently recorded its transport or mobile intensive care unit land with access to qualified and experienced Colorado, has come up with the idea of 50,000th medical screening ambulances. The company said in a statement: “Our underwriters who can take decisions on individual selling insurance against the price of a through its trading division goal is to offer a boutique-type service catering to risks with a more flexible approach. Brokers with season ski pass in case of injury or illness. Healthcheck247, the first those travel insurers and individuals who require the access to the unit will have their own contact point Most resorts will not refund your money or in the UK to offer a right team, the right aircraft at the right time and to allow them to establish relationships with give you a credit for the following season if business to consumer deliver consistently high quality transport at a fair individual underwriters. This has the benefit of giving you are unable to use your ski pass. Thus, facility. price. Plans are to invite other similar quality us a better understanding and wider appreciation of you may be faced with a ‘use-it-or-lose-it’ Launched in April of this year, providers worldwide to join the alliance at a future the risk that will allow us to grant cover in more proposition. Missing out on skiing is bad enough the medical screening service date.” instances.” ... but to lose your investment in a season pass provides both live and online would be even more disappointing. Skier Insurance screening for agents and their Services, however, has found a niche in the market customers at the time of policy and is beginning its second season of offering purchase. Iain Chalmers, Citybond’s insurance against the price of a season ski pass. Sales Director, said: “Medical screening Skier Insurance Services offers Season Pass plays an increasingly important part in the Insurance to skiers at six per cent of the pass price provision and sale of travel insurance. Travellers for the season. It covers you if an injury or illness must declare any pre-existing medical conditions for prevents you from skiing at the specified resort(s) consideration by the underwriter prior to booking. for at least 30 consecutive days during the ski They may then be required to pay an additional season. As injury or sickness may occur anywhere in premium for their particular condition. the world, not just at the ski resort, the insurance Healthcheck247 enables us to offer a ‘one-stop’ will reimburse the value of your unused pass. service that keeps both the agent and their Emergency Evacuation Insurance covers up to customers fully involved and informed when $15,000 for losses, which occur while skiing at the purchasing our policies.” resort. Accidental Death & Dismemberment Insurance covers you up to $10,000. As can be expected, there are some standard Intensive care ambulance restrictions to the ski insurance, which can include but are not limited to: out of bounds exclusions, lack of snow, previous medical conditions, heli-skiing or put to the test extreme skiing, accident under the influence of Air rescue organisation DRF (German Air Rescue) alcohol or intoxication. and the Stuttgart-based branch of the DRK (German Iverson is offering 10 per cent of the proceeds to Red Cross) are piloting an intensive care ambulance. resorts as an incentive to promote the product. Their aim is to improve the transport system for Many resorts say the insurance is a good option for intensive care patients in and around Stuttgart. customers because they generally don’t offer The intensive care ambulance will complement the refunds. intensive care transport helicopter for short-distance Insurance industry officials say that transport carried out between Skier Insurance Services is most hospitals. A benefit of the new likely the first provider to offer system is that both the helicopter such a policy in the US. Jean and the ambulance are now Salvatore, spokesperson for the centrally co-ordinated by the Insurance Information Institute, a experienced dispatchers of the non-profit organisation that tracks DRF alert centre in trends in insurance, says: “There Stuttgart/Filderstadt. are only so many homes and cars “Ground rescue and air rescue out there and business being have been working perfectly well business, you’re always looking together. Now we aim to extend for something new. You can this co-operation. We want to insure so many things and if establish a co-ordinated intensive someone notices there’s a need, care transport system for the they can create a product, Stuttgart area by efficiently using although you don’t know if it’s going to succeed. the existing technical and medical possibilities,” says “You can already get travel insurance to make sure Dr Jörg Braun, DRF Medical Director. “Considering the trip goes well and insuring the pass goes hand- the continuing specialisation of hospitals, an in-hand. It’s a good complement for careful adequate intensive care transporting system is consumers.” becoming more and more important.”

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

Insurers snub Asbestos claims are a worldwide problem Royal & further regulation The UK has had many cases of asbestos- In the UK, the costs of asbestos-related claims will SunAlliance sells up related claims to deal with in recent years, be paid by the insurance industry, which is expected The Claims Standards Council (CSC) in the but future costs of diseases caused by to face half of the bill, with the rest being shared UK is currently in the initial stages of its exposure to this toxic chemical could between the government, local authorities and in Japan application to the Office of Fair Trading be up to £20 billion in the UK alone various companies. In addition, the expected £4-10 (OFT) for approval of its codes of over the next 30 years. billion uninsured cost of asbestos-related claims Royal & SunAlliance Group plc (RSA) has practice. The aim of the CSC is to The Faculty and Institute of Actuaries, could cost the taxpayer in the region of £5 billion. announced that it is to sell the business of its branch investigate the performance of its who collected data from large The Faculty believes that claims for mesothelioma, a operations in Japan to American Home Assurance members and, where appropriate, insurance companies, said: “Asbestos is cancer affecting the lining of the lung, will continue to Company and AIU Insurance Company, both discipline its members by way of written certainly not yesterday’s problem. Its rise for the next 10 years, with each claim estimated to member companies of American International warnings, fines, compensation payments effects will continue to affect insurance cost insurers £100,000. This, it believes, would account Group Inc. (AIG). or removal from the Council. It is an companies and healthcare providers in for half of the future cost of asbestos-related diseases. RSA operates in Japan through branch operations independent body and hopes to be made the west for decades to come.” Other related diseases, such as asbestosis, are expected of The London Assurance, which markets personal up of insurance underwriters, solicitors, It is not just the west that will continue to to become less apparent, due to the decline of asbestos insurance, and Royal & SunAlliance Insurance plc, claims managers and the medical profession. be affected, though. While asbestos use use in the UK from the 1970s. Each claim for this which sells commercial insurance through brokers. But initial take-up of membership has been has fallen fivefold in North America and disease, however, will amount to around £50,000. Consideration payable by AIG will be £92 million, slow, with three of the country’s largest insurers Western Europe since 1960, it has increased by Meanwhile, pleural plaques can give rise to claims principally for the goodwill of the business. This will refusing to cooperate with the CSC ‘until the a similar figure in developing nations. The Faculty of £5,000 to £15,000. These claims are be paid in cash, which, together with assets of the accident management industry is capable of good estimates that more asbestos is being used in Asia now contentious, though, as they seek ‘compensation business to be retained by RSA, will make the total practice’, according to a report in The Times. than was consumed at its peak of use in the US 30-40 for the fear of getting a disease’, but such claims value attributable to its Japanese operations as a Commenting on his company’s decision not to sign years ago, with China a main user. have more than doubled in the UK over the last result of the disposal around £118 million. This up with the Council, Dominic Clayden, Norwich “We expect that the conversations we are having three years. Test cases on the level of does not, however, take into account transaction Union’s Director of Technical Claims Services, said: today will be repeated in China in 20-30 years time, compensation for these claims are just beginning. costs and related outgoings. “We’ve learned from our experience with accident which is very sad,” said Mr Julian Lowe of the Faculty. As at 30 September 2004, the net assets of the handling companies in the past. Until they’ve branches – approximately £26 million – fulfilled the challenge of getting regulated, it’s too represented under one per cent of Group early for us to allow injured people to be dealt with Capital risk shareholders funds, and the net written premium of under any council protocol.” around £33 million was under one per cent of Meanwhile, AXA stated that it prefers to make its New research by global business analyst KMPG has Patel added that companies most effective at linking Group net premiums. own agreement with accident managers and law found that insurers who manage risk effectively will not capital held to risks taken would be better placed to Commenting on the transaction, Simon Lee, RSA’s firms, and Zurich says it’s too busy as the lead only be able to use their capital more effectively, but attract investors or lower their cost of capital. CEO International Business, said: “The transaction insurer on the Department for Work and Pensions’ stand to gain greater access to world capital markets. Among the 102, mainly European, insurers KMPG signals the end of the main restructuring process employers’ liability initiative to focus on the CSC. According to Hitash Patel, head of insurance surveyed, it found a ‘genuine desire’ to develop systems for International Business. Our aim now is to Dr Burns-Howell, head of the Claims Standards markets at KPMG, under the European to identify risks. Some 64 per cent of companies develop further the rest of the international Council, defended the body’s intentions by Commission’s Solvency II directive, insurers will be showed a serious interest in integrating these systems franchise, which we believe have high quality commenting that half of the managers that had required to link the capital they hold to the risks into the frameworks they used for managing all the businesses and the opportunity for continued long- originally shown interest in joining the Council had they take. Although this directive would not come different types of risk their business faced. term earnings growth.” dropped out when told that the Council would ban into force until 2008, insurers will need to have the But, the survey found, however, that not all insurers The transaction is subject to regulatory and other the cold calling of injured people. He added that the systems in place to identify and analyse their had shown awareness of the necessity to calculate conditions and a completion accounting adjustment. success of the CSC is ‘a significant challenge that will business’s risks and then evaluate the amount of the amount of capital they would need to cover the require constructive partnerships with all stakeholders’. capital needed in order to cover those risks. risks they had identified.

www.itij.co.uk International Travel Insurance Journal 10 INSURANCEMATTERS NEWSWIRE Foreign insurers need top ratings to ictims of the 9/11 terrorist attacks in the US enter UAE were paid a record $38 billion in compensation, Vaccording to the Rand Corporation. This payout was 30 times larger than any previous disaster The insurance sector in the Gulf sheikhdom of the are more than 50 players payout and was paid by insurance companies (51 United Arab Emirates (UAE) is set for a burst of vying for business. Of this, per cent), government programmes (42 per cent), competition as the government opens up the doors to the top 10 insurers account and charities (7 per cent). foreign companies. Until now, only branches of foreign for some 60 per cent of the insurers were allowed to operate in the UAE, which premium generated in the ntermediary only insurer MMA Insurance in the meant that liabilities were on the foreign parents local market. That, according UK has been assigned a financial strength rating rather than the local branch. Story from Saby Ganguly to the majority of industry I of A- by Standard and Poor’s. The re-rating insiders, is way too much. brings MMA Insurance’s rating in line with that of The move to open up the market falls within an The liberalisation of the its French parent MMA IARD. agreement with the WTO, which the UAE joined in market could result in many 1995. Under the agreement, the UAE is required to mergers and acquisitions to .M. Best has assigned a financial strength rating start opening its insurance market by the start of 2005. reduce the number of of B+ and an insurer credit rating of BBB- to However, companies that get the invitation will be players, many of whom currently do little more than Italian insurers barred A Poland’s Polskie Towarzystwo Reasekuracyjne required to have an ‘A’ or ‘A-’ rating from any act as large-scale brokers instead of real risk takers. S.A. (Polish Re) with a stable outlook. “Polish Re is leading credit rating agency. All types of insurance The authorities have also called for a reciprocity The anti-trust authority in Italy has demanded that the main reinsurance company in Poland,” noted practices will be allowed, ranging from life to arrangement for issuing new licences. Under this, several insurers stop using the same firm to acquire Best, “but lacks a strong presence abroad…it general, including travel. UAE insurers will have to be offered the same market data. The authority said that insurers relying intends to further penetrate Central and Eastern “A high rating requirement will ensure only the real opportunity if they plan to launch operations in a on the same firm for industry information European markets [however]…” serious ones can operate in the UAE,” said a senior country from where an insurance firm has applied threatened life insurance competition. official with the Ministry of Economy and for a licence in the UAE. This could pave the way A year-long investigation also found the information ermany’s Munich Re AG has posted a Commerce, which regulates and oversees the for some of the bigger Middle East-based insurers on the market database – regarding distribution substantial rise in third-quarter net profit, insurance industry in the UAE. The UAE does not to set up shop in the UAE and vice versa. channels, sales conditions and costs to clients – was G although a spate of recent large claims – yet have a dedicated used by the insurers themselves, but not made including four hurricanes in Florida – has prompted insurance regulator. available to consumers. the company to trim its full-year net-profit target. For the top-tier The anti-trust authority ordered Italy’s leading international insurers, insurer Generali, its life insurance unit Alleanza, and mbattled Marsh & McLennan Cos. has an ‘A’ or ‘A-’ rating is rival Mediolanum, as well as some of the country’s announced sharply lower third-quarter not an issue, but it leading banks, to stop using the common database E results and plans to lay off 3,000 workers. could seriously limit immediately. Marsh’s third-quarter profit tumbled 94 per cent chances of entry by the The probe began in 2003 when the authority was to $21 million, from $357 million a year earlier. mid-tier players. voluntarily informed by Italy’s first and second The announcement has largest insurers, Generali and RAS, that they had XA SA, the French insurer, has said its come as a wake-up call signed a contract with consulting firm IAMA, which revenue edged down 0.5 per cent in the for the local insurers. In manages the database. A first nine months of this year, hurt by the a market where the Local insurance industry group ANIA said the strong euro and lower life and savings premiums. premium income is authority’s ruling applied to only 13 out of 107 Property and casualty revenue gained, however. estimated at over insurers operative in Italy and its failure to impose US$1.1 billion, there fines showed the regulator did not view the einsurer Hannover Re AG in Germany has violations as particularly serious. posted a €20.4 million net loss in the third R quarter, hurt by high exposure to storm claims that amounted to €358.6 million.

talian insurer Assicurazioni Generali SpA said its New bancassurance in third-quarter net profit grew 32 per cent to I €272 million. The company will raise as much the Czech Republic as €2.5 billion to refinance debt, giving the company more breathing space as it seeks to European banking institution Komercni Banka has expand throughout Europe. entered into a co-operation agreement with Allianz Pojistovna in the Czech Republic to sell the NG Groep NV of the Netherlands has insurer’s non-life policies in all of its branches across reported a 63 per cent surge in third-quarter the country. For both companies, this represents I earnings. The company plans to expand its the largest project so far for using alternative presence in Asian markets. distribution channels and offering new products. Komercni will sell Allianz’s household, property and hina’s securities and insurance regulators motor insurance to its customers through 800 have jointly issued provisional rules allowing specially trained branch staff. A pilot project C insurance companies to directly invest in the between the two companies at selected branches stock market. The rules are effective immediately. of the bank proved so successful the co-operation was given the go-ahead and rolled out at all of the utch financial services company ING Groep bank’s branches at the end of September. NV has agreed to sell its Atlanta-based Life Commenting on the new relationship, Allianz D Insurance Co. of Georgia unit to Jackson Pojistovna’s CEO Miroslav Tacl said: “We expect National Life for €197 million. The deal is expected this new relationship to reinforce significantly our to result in a pretax loss of under €150 million. position in the retail sector. Komercni’s extensive branch network will make it possible for us to urich Financial Services has sold Turegum approach a broader customer base.” Insurance Company to Harper Holding Sarl. Komercni Banka operates throughout the whole of Z Turegum’s main business was reinsurance Central and Eastern Europe. It was transformed conducted out of the London branch. Zurich has from a state financial institution to a public-limited also sold its Life operations in the consumer and company in 1992 and was eventually privatized in commercial segments and its general insurance 2001, when it became a member of French-based operations in the consumer and small commercial Société Générale. (see also World markets p.30 segments in Luxembourg to P&V Assurances. Czech this out!) onvernium recently warned that earnings for the fourth quarter could be hit by further C restructuring and redundancy costs of up to $26 million. This comes after the Zurich-based group announced losses in the third quarter of $116.3 million. After winning shareholder backing for an emergency $420 million rights issue, Convernium has decided to reduce its focus to reinsurance outside the US.

International Travel Insurance Journal www.itij.co.uk

12 INSURANCE & HEALTHMATTERS NEWSWIRE

Depressed and uninsured in US Japan insurers on urich Financial Services has reported a 35 per cent increase in net income to Z US$1,902 million after a charge of US$400 People that are happy and healthy now, but have markets and found that out of 60 requests for track despite million after tax for hurricanes. Gross written turned to anti-depressants in the past to help them individual health insurance, Emily was rejected 14 premiums in general insurance amounted to through an episode of depression, however mild, times, or 23 per cent. Of the 46 offers Emily typhoon payouts US$29.1 billion – an increase of five per cent. may find getting individual health insurance a received, only nine were ‘clean offers’, the rest had challenge. limited benefits. Thirty of the offers imposed higher .M. Best has affirmed the financial strength According to the study ‘How accessible is individual premiums. The typhoons that have battered Japan over the ratings of two of India’s largest insurers. health insurance for consumers in less-than-perfect Overall, the study found that 90 per cent of the last six months have not had such a devastating A State-owned General Insurance health?’ by Karen Pollitz, a Georgetown University time, the less-healthy hypothetical health insurance effect on the country’s insurers due to sufficient Corporation of India (GIC) and New India researcher in the US, individual insurers may deny applicants in their study were unable to buy polices reserves. Despite missing first-half profit targets due Assurance Company Limited have both had their you coverage based on your medical history if it at standard rates, while 37 per cent were rejected to record bad weather, many of Japan’s non-life A rating affirmed, both with a stable outlook. includes the use of prescription drugs to treat outright. insurers will probably keep their full-year estimates anxiety, depression or if you underwent counselling The author’s note that with persistence, people are unchanged due to ample reserves to cover claims. ce Europe has begun restructuring its UK for a similar disorder. usually able to find an insurer who will cover them, Millea Holdings Inc., Japan’s largest non-life insurer and Ireland property and casualty operations “People who’ve always had group health insurance it just might cost a bit more. by premium income, said it had a seven billion yen A into four distinct geographical regions, each are completely unprepared when they’re with their own regional development manager and forced to seek coverage in this [individual regional underwriting resource. The aim is to health insurance] market,” said Pollitz. provide a stronger platform for the company’s “They think they’re going to get the same sustained growth in the area. coverage they had in their jobs, except they’ll just have to pay a little more llianz plans to cut its stock market exposure money. It’s absolutely not like that at all. further and increase its focus on private The individual health insurance market is A equity to reduce the impact of investment unpredictable, inconsistent and volatility on its profit and loss. The company stated expensive.” that the traditional strategy of buying and holding In the study, ‘Emily’ is a hypothetical listed investments ‘worked well for decades but applicant: She is 50 and a recent widow doesn’t work in a modern regulatory environment’. who has never worked outside the home. She briefly obtained individual coverage exican insurance companies’ net profits eased with an HMO in the state where she and one per cent in the first three quarters of her husband lived, but she moved back to M 2004, compared to the same period last year. her hometown to be near old friends and According to the Mexican Association of Insurance must buy new health insurance there. She Institutions, total profits in the first three quarters of is five feet four inches, 125 pounds, does the year were 7.3 billion pesos ($642 million). not smoke. Since her husband’s death, she has been diagnosed with ‘situational ew Zealand’s largest general insurer, IAG depression’. Her former doctor prescribed NZ, has added eight hybrid cars to its fleet in 20mg of Prozac a day. Otherwise, Emily is N an effort to become more environmentally in excellent health. friendly. The hybrid Toyota and Honda cars use 50 The study sent Emily’s application to at per cent less fuel than a conventional engine and least six health insurers in eight regional produce 90 per cent less greenhouse gases.

nsurer Winterthur and broker Hub International ($67 million) group loss for the first half, reversing a have both decided to refocus their business in 30 billion yen profit projection, due to the typhoon I Quebec away from personal lines. Winterthur claims. is selling its subsidiary in the area for $48 million, Meanwhile, Tokyo-based Mitsui Sumitomo, Japan’s and will focus on its Toronto-based subsidiary, second largest general insurer, stated that group net which focuses on commercial lines. Hub is selling income to the end of September fell 65 per cent to part of its personal lines book to focus on 28 billion yen. It had predicted a 49 billion yen commercial lines and its VIP personal lines clients. profit. And Sompo Japan Insurance Inc., which ranks third in the country, earned 7.5 billion yen in- wiss Re’s award-winning building in central group profit for the six months to the end of London – affectionately known at the September, compared with a target of 36 billion S Gherkin – has taken on its first tenents. yen. Three companies have taken floors in the building, In all, disaster claims among Japan’s five biggest including Canadian underwriter Creechurch. The non-life insurers may total about 350 billion yen, building opened in December 2003, but no major according to Morgan Stanly Japan Ltd, including tenants could be found to take multiple floors. payments for Typhoon Tokage (see ITIJ 46, Typhoon Tokage batters Japan) and a series .M. Best has affirmed a financial strength rating of earthquakes that killed more than 30 people. of A- for South Korea’s Dongbu Insurance The General Insurance Association of Japan A Company Limited, with a stable outlook. declared that damage claims among Japanese insurers totaled about 500 billion yen as of 17 K insurer Aviva plc has sold a larger-than- November, making this year’s overall insurance toll expected dual-tranche perpetual bond from natural disasters the second highest in history U equivalent to about £1 billion (€1.4 billion), and this figure doesn’t include the estimated 13.8 entering the capital markets for the first time this billion yen of claims related to the Niigata year. The insurer said in a statement that the deal earthquake. was increased due to investor demand. The issue All of the top three non-life insurers said that was four times over-subscribed. expected payouts would be at least three times more than their May estimates. As a result, the wedish insurer Skandia Forsakrings AB has insurers will likely cut provisions between 20 billion posted a third-quarter net profit of 310 and 30 billion yen this fiscal year. However, as S million kroner (€35 million), following a loss ‘sufficient’ provisions were made to cover these of 218 million kroner a year before, when results payouts for typhoon, flood, fire and other weather- were dragged down by restructuring costs of 389 related damages, full-year profit targets are being million kroner. However, the insurer will take a maintained. restructuring charge of 350 million kroner in the “Calamity reserves are a typical accounting fourth quarter of this year. procedure for Japanese non-life insurers, which the government allows because of the country’s he Accounting Standards Board (ASB) in the UK propensity for natural disasters, including has retreated over proposals to make insurers typhoons,” said Runa Ichihari, a senior Standard & T change the way their accounts are presented for Poor’s analyst in Tokyo. this financial year after hostility from life insurers. Peter “Once the accounting system is based on global Vipond, head of Financial Regulation and Taxation at standards, insurers will be required to drop such the association of British Insurers, said: “Discussions reserves and reinsure all policies.” are continuing and we are hopeful a revised standard will come from the ASB in the next few weeks.”

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

Epidemic ravages Quebec hospitals Course to combat travel health horrors

A virulent bacterial epidemic that has killed at bacterial growth. A two-year course has been developed at Sheffield the growing threat of international diseases. Diseases least 109 people in Quebec hospitals in the first six Experts studying the epidemic say frequent hand Hallam University in the UK to educate people on such as HIV/AIDS, malaria, rabies, hepatitis B and C, months of 2004 is presenting Canada with the washing, isolation of infected patients and prudent the risk of health scares from foreign shores. It STDs, and relatively new infections like SARS and gravest public health threat it has faced since 2003 use of antibiotics can help control outbreaks. But comes amid reports of a disturbing rise in infections, Legionnaires’ Disease are all put under the spotlight. when 44 people died of SARS, most in the they also admit adequate infection control is difficult including sexually transmittable diseases (STDs), Professor Steve Green, a consultant physician in neighbouring province of Ontario. Milan Korcok in many of Quebec’s antiquated hospitals. being picked up by Brits abroad. infectious diseases and tropical medicine at the Royal reports Dr Marie Gourdeau of Quebec’s Association of The part-time course was developed in response to Hallamshire Hospital and research fellow at the Microbiologists said: “Generally University, helped develop the course: “The world is The hospital-based strain of Clostridium difficile, speaking, we never have enough a small place and getting smaller. People are moving which can cause severe, often fatal diarrhoea, has private rooms. Modern hospitals around the world for business, industry and study. also been blamed by health authorities for should be built later (on) with Tourism is becoming more imaginative, as people contributing indirectly to 108 other deaths since almost exclusively private rooms have the resources and desire to visit ever more 2001 – the vast majority in Quebec hospitals. At for infection control purposes.” distant locations. There are also millions of refugees, least 10 additional deaths have also been reported in At many older hospitals in the economic migrants and people moving to other hospitals in Calgary, Alberta, where officials report Montreal area, three or four parts of the globe for family, personal and political seeing about 10 new cases of C difficile per month patients often stay in the same reasons – some beyond their control. at each of the city’s three main hospitals. The room and share the same “In this environment there is an ever-growing risk of normal infection rate is between three and five new bathroom. Hand washing sinks at diseases, both old and new, spreading – as we have cases per month. some facilities are also located a seen with SARS and TB, which has made a recent Authorities tracking the spread of this epidemic say C distance away from patients’ comeback, with cases soaring by almost 20 per cent difficile is a common cause of infectious diarrhoea rooms. in the UK over the last decade.” throughout the industrialised world, but infection Dr Andrew Simor, a He added: “Five-sixths of the world’s population live rates are normally low and typically few die as a microbiologist at Sunnybrook and with diseases we hardly see in the West. But germs result. But the infection rate in Quebec is twice that Women’s College Health and viruses can travel anywhere, especially when we commonly seen elsewhere and the deaths rates are Sciences Centre in Toronto, sees can get from one side of the world to the other so as high as eight per cent, compared to between one the possibility that the virulent C easily. Healthcare services throughout the world are and two per cent. difficile strain prevalent in Quebec coming across travel-related problems much more Though C difficile is becoming an increasing problem may in time spread beyond that often and something has to be done.” in the UK and the US, nowhere has it hit with the province. He stated: “Some of It is hoped healthcare workers – from general intensity and concentration seen in the Montreal the patients transferred to us practitioners and nurses, to people working in the area. Some experts speculate that the strain of from Quebec or from the US travel industry, occupational health, police, bacterium apparent in Quebec is much more may well bring this organism with paramedics, customs officers and social workers – virulent than what has appeared elsewhere. them and introduce it to Ontario will benefit from the new qualification. The scope of the epidemic was first revealed in late or to other parts of the Dr John Mills, Principal Lecturer in Microbiology at October by hospital authorities, who admitted they country.”Clifford McDonald, an Sheffield Hallam, spearheading the course with had known for some time that a serious health infectious disease specialist at the Professor Green, said: “This exciting new course is threat existed, but said they wanted to evaluate its US Centers for Disease Control about making health and travel workers more aware severity before going public. That admission and Prevention (CDC), concurs of the potential health risks and problems of foreign provoked angry responses from patients, doctors with the concern about this travel and what help and advice can be given to and media, all of whom said they should have been particular strain spreading beyond prevent the spread of infection.” warned so they could take appropriate precautions. Quebec into other hospitals in Officials confirm that at least 7,000 Quebecers have North America. contracted the bacterium so far. “Based on the experience in Canada, it’s a killer. And C difficile is spread through faeces, which can leave I think we’ll see it more,” he said. The CDC spores on almost any surface for weeks – even after recommends hospitals with outbreaks require all they are cleaned. These spores are extremely hard healthcare workers to wear gloves and gowns, stop to clean and are resistant to most antibiotics. using rectal thermometers and other shared The bacterium itself lives naturally in the colon and is equipment, return to washing their hands with water thought to thrive in patients who have been given instead of alcohol-based gels, clean infected rooms antibiotics or stomach acid suppressants, which can with diluted bleach, and more closely scrutinise the alter the flora of the digestive tract and encourage use of antibiotics.

LGV spread

The Centres for Disease and Control (CDC) in the US is making people aware of a rare sexually transmitted disease, Lymphogranuloma venereum (LGV), which is spreading among gay and bisexual men in Europe and could appear in the US soon. The CDC was alerted after the Netherlands reported 92 cases of LGV in the last year, with half of the cases among doctors are not required to report the infections. men who have sex with men. Of these, 30 LGV is an STD or infection involving the lymph occurred during 2003 and 62 during 2004. glands in the genital area. It is caused by a specific Staff members of public health services, academic bacteria of the Chlamydia trachomatis strain. The medical centres and the National Institute of Public first symptom may be a small ulcer on the penis or Health and Environment investigated the cases in the vagina, which is often unnoticed. As the organism Netherlands. After the initial 13 cases were spreads, the inguinal (groin) lymph nodes swell, reported, efforts were implemented to increase become tender, and may rupture and drain through awareness of the outbreak among healthcare the skin. This is often accompanied by bloody rectal providers, staff at HIV treatment centres and sexually discharge, painful defecation, diarrhoea, and lower transmitted disease (STD) clinics, and gay men. As a abdominal pain. Women may develop fistulas result, an additional 17 confirmed cases and 40 between the vagina and rectum. Treatment involves probable cases that occurred in 2003 were identified the use of certain antibiotics, specifically tetracycline retrospectively. or sulfamethoxazole, for three weeks. Other European countries – Belgium, France, The CDC has advised doctors and clinics worldwide Sweden and the UK – have also reported an to be vigilant for LGV and be prepared to diagnose increase in the number of cases. It is not known the disease and provide appropriate treatment to whether there is a similar surge in the US because patients and their exposed sexual partners.

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

Flu summit Cholera alert in Anthrax outbreak Dakar in Indonesia Editorial The World Health Organization held a summit in Geneva, Switzerland, on the 11 November to assess the threat of a flu pandemic. Sixteen vaccine An outbreak of cholera in comment companies and health officials from the US and Senegal, Africa, has been reported other large countries attended. to the World Health Organization “With increasing signs that bird flu is becoming (WHO). It has been a busy month. ITIC came and established in Asia, and several worrisome human The WHO has received reports went in a flurry of animated speakers cases that can’t be linked directly to exposure to from the Ministry of Health of a and business card exchanging and what a infected poultry, it’s only a matter of time until such total number of 128 cases and show – not to mention a venue. Vienna a virus adapts itself to spread more easily from two deaths from 5 October to 28 was a beautiful location and as it was my person to person and cause a severe worldwide October 2004 in Dakar. The first time there I personally thoroughly outbreak,” Klaus Stohr, Influenza Chief of the United number of cases has risen sharply enjoyed both the city and the conference, Nations’ health agency, said. since the beginning of the and I hope the same goes for the With a current total of only 300 million doses outbreak and since 22 October delegates and speakers who made it such worldwide, it would take at least six months to when the Ministry of Health a success. develop a new vaccine to fight a pandemic. declared an epidemic. One of the major issues that affects “If we continue as we are now, there will be no Cholera is an acute bacterial many aspects of the travel insurance vaccine available, let alone antivirals, when the next infection of the intestine caused industry, from assistance companies and pandemic starts,” Stohr added. “The focus is to by ingestion of food or water ©CDC air ambulances to insurers themselves, is prepare countries now for the next pandemic.” contaminated with Vibrio that of patient direction. Using financial cholerae serogroups O1 or O139. Symptoms Six people in Indonesia have recently died from incentives for tour reps and include acute watery diarrhoea and vomiting, which confirmed anthrax. Government authorities say the hotel staff with the purpose of can result in severe dehydration. cases can be linked to eating meat from a single steering sick guests to private According to the WHO, a National Outbreak contaminated goat. Report by Jane Collingwood hospitals is ethically dubious, Management Committee has been established to to say the least, and could monitor and carry out comprehensive control Livestock owners have been put on alert for even be dangerous in some measures in response to the outbreak. Physicians symptoms, and 300,000 vaccines have been circumstances. For instance, and health workers in the affected districts of the distributed in an effort to prevent this outbreak of what if the resultant city have been alerted and provided with technical anthrax spreading. The outbreak occurred in the ambulance trip is longer guidance; health education materials on good Babakan area, which has now been isolated for because the hospital is further hygiene have been distributed; social mobilisation three months. away, in an emergency that activities targeted particularly at children and women Dr H R Wasito, Indonesia’s Director General of needs urgent treatment? After have been carried out; and unsanitary areas have Livestock Services, said: “We have ordered isolation listening to some of these been decontaminated. and banned inter-region transportation of livestock alarming practices employed from Babakan.” in some holiday resorts, you The area has also recently suffered the get the feeling that economic consequences of bird (avian) flu. holidaymakers are often seen Not uncommon in Indonesia, anthrax can as easy prey even when they spread to people who process or eat the are in need of hospital meat of contaminated animals. Its spores treatment. What’s even more (bacteria) can survive for over 20 years in horrifying is when hospitals dry earth. over-treat patients for the sole purpose Affected areas include South and Central of making more money. Castes for Dysentery from Asia America, Southern and Eastern Europe, sprained ankles, week-long stays for Asia, Africa, the Caribbean, and the Middle headaches, you name it, it’s been done. Health officials in Taiwan have advised about a East. Anthrax in wild livestock has also International policing of this number of Taiwanese travellers returning from occurred in the US. It arises most often in phenomenon is required and stiff south-east Asia with bacterial dysentery, and have agricultural regions in wild and domestic penalties should be applied to serial warned people to be more alert about the illness. animals, such as cattle, sheep, and goats, offenders. The Center for Disease Control and Prevention and usually spreads to humans through said that so far this year, 74 cases of bacterial exposure to infected animals or their dysentery have been reported, the majority of products. cases originating in south-east Asia. The majority of cases are cutaneous Bacterial dysentery is contracted by eating salad and (affecting the skin), when the bacterium other uncooked food contaminated by human enters a cut or abrasion. Other forms of sewage, and causes severe abdominal pain and anthrax infection are inhalation, which is diarrhoea. usually fatal, and gastrointestinal, which Richard Forsyth The government has cautioned that tour operators leads to death in 25 to 60 per cent of Editor and travel agents organising trips to the region, as cases. well as travellers, need to pay more attention to food hygiene.

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

Karnataka healthcare tourism Malaria breakthrough

Karnataka in southern India is best known for its the end of November. Promotional campaigns have software and biotechnology industries, but it is now also been launched in the Gulf, Pakistan and the UK, Scientists have been attempting to find a safe and resistance to them. The fact that malaria is not becoming an increasingly popular as a health tourism and business travellers are being pitched to stay effective vaccine against malaria for the last 50 years caused by a simple virus or bacterium, like most destination. After receiving much publicity for the longer and include treatment in their visit. and now, it seems, a breakthrough has been made. other diseases, makes it a tough scientific challenge. treatment of a young Pakistani heart patient, Noor For their money, health tourists get a very good deal In human trials, the GlaxoSmithKline (GSK) The infectious agent in malaria is a multi-cellular Fatima, Karnataka is now looking at capturing at least when travelling to such destinations for treatment. Mosquirix vaccine showed promising results against a parasite called Plasmodium, which has a lifecycle that 20 per cent of the 3.2 lakh (320,000) total Indian medical care comes at about a tenth of the disease that kills between one and three million international inflow as ‘healthcare tourists’, according cost of similar services in the West, and about a people each year. to Mr Mahendra Jain, State Tourism Commissioner. seventh of the cost of South-East Asian pricing. It is The trials took place in southern Mozambique, Bangalore, capital of the state of Karnataka, boasts a small wonder, therefore, that health tourism has where each year people get an estimated 38 bites range of world-class specialty hospitals and many grown 30 per cent in the last year. The current each from malarial mosquitoes. Pedro Alonso, from international high-class hotels, making it a perfect inflow of health tourists to Karnataka stands at 8,000 the Centre of International Health at the University of destination for tourists who want to combine per year, with around 12 hospitals treating the Barcelona, and the research team concluded that, surgery with a restful recuperation period, which majority of patients – that’s up to 500 foreign although the vaccine gave only partial protection from often involves ayurvedic applications and gentle patients per year. the disease, the results showed that the development exercise, such as yoga. The state government, With increasing numbers of foreign patients leading of an effective vaccine against malaria is ‘feasible’. together with the hospitality industry and the health to increased jobs in the healthcare sector, and many The trial involved 2,022 children aged between one sector, realise they can capitalise on these assets and district hospitals being spruced up as part of the and four and it was found that vaccinated children are working together to promote the area as a top health tourism game plan, it looks, at the moment, were 30 per cent less likely to have suffered at least medical tourism destination, which has included the like everyone is set to benefit from this growing one episode of clinical malaria (that needing ©CDC organisation of a summit on health tourism held at trade in medical health. treatment) by the end of the six-month trial, compared with unvaccinated children. The vaccine has many stages. was also 45 per cent successful in extending the “Never before has a vaccine been produced against length of time before the children became infected, such a complex organism,” reported the Financial and vaccinated children were 58 per cent less likely Times in the UK. to develop severe malaria that could kill them. The new vaccine targets a stage in the Plasmodium Despite these promising results, it would be at least lifecycle known as the sporozoite, which is injected 2010 before the vaccine would become into the human bloodstream by mosquitoes. Scientists commercially available. More extensive studies will at GSK’s Belgian centre began creating the Mosquirix be needed to prove that Mosquirix is safe and vaccine in the 1980s by combining a sporozoite effective before it can be licensed. protein with another protein used in GSK’s successful Progress in this field owes much to the Malaria hepatitis B vaccine. According to The Lancet, this Vaccine Initiative (MVI), which was set up with a stimulates the immune system into producing grant from the Bill and Melinda Gates Foundation. antibodies and white blood cells that can kill the The MVI promotes public-private partnerships to sporozoite or stop it developing further in the liver. enable the supply of medicines to the developing With the HIV/AIDS epidemic also weakening the world. It has also funded a number of other malarial immune systems of many people in malarial areas, vaccines, ten of which are in clinical trials. not to mention the financial burden these countries Many commonly used drug treatments have face in the light of such diseases, the sooner further become useless in some parts of the world, trials are completed and an effective vaccine made however, because malaria parasites have developed readily available, the better.

Air travel affects lung disease A new study has shown that people with lung pulmonary disease to a reduced-oxygen problems can experience a drop in blood oxygen environment, simulating the air in the cabin of a below recommended levels, due to the poor air commercial aircraft during flight. quality found in commercial airliners. Although all subjects had acceptable blood Researchers from the Concord Repatriation oxygenation at sea level, exposure to the simulated General Hospital in Sydney, Australia, subjected 15 cabin atmosphere produced a significant drop in people with interstitial lung disease (involving both groups. inflammation of the lower respiratory tract and The team says that measuring blood oxygen levels breakdown of the structures that transfer oxygen to at sea level probably should not be used to predict the bloodstream) and 10 with chronic obstructive oxygen levels during air travel.

£50m targets UK sex disease epidemic

A hard-hitting campaign has been launched in the an attempt to combat this, the government wants to UK to fight the ‘epidemic’ of sexual diseases open ‘one-stop’ STI clinics and extend screening sweeping the nation. Aimed at 18-25 year-olds, the programmes across the UK. age group considered most ignorant of the need to Dr Angela Robinson of the British Association for practice safe sex, the £50 million government Sexual Health and HIV, said: “In some parts of the initiative is writing to every young person in the country, people are now waiting two weeks. We country to offer them free check-ups at sexually haven’t got the staff to man the clinics.” transmitted infection (STI) clinics. Latest figures from the HPA reveal that STI rates are Health Secretary Dr John Reid unveiled the at levels that have forced Dr Reid to act. They show measures as a response to soaring STI rates that 89,818 new cases of chlamydia diagnosed last year, have risen by over 50 per cent in just eight years. which is treble the 1996 figure. In total, 708,083 “STIs are reaching epidemic proportions,” Dr Reid STIs were detected – up four per cent on 2002 and said. “The response of any sensible government has 57 per cent on eight years ago. to be on the scale of our response to AIDS.” In addition, more than 50,000 people in the UK Dr Reid was referring to the ‘Don’t die of ignorance’ now carry HIV – the virus that can lead to AIDS – warning used to combat the spread of AIDS in the with a record 6,606 diagnosed HIV-positive in the 1980s. This time, a series of shocking posters and last year. television adverts will attempt to drive home the HPA Head, Professor Pat Troop, said: “Each HIV message in the hope of arresting the spread of infection prevented can save up to £1 million in diseases, such as chlamydia. treatment.” One in eight teenage girls in the UK now carries the By 2007 the UK Government has pledged £300 disease, which can lead to infertility, and almost one million to be used to set up nationwide chlamydia in five men aged 20 to 24 is infected, according to screening and to modernise sexual health clinics. research by the Health Protection Agency (HPA). In

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

Branson eyes up P&O ferries? Tourism has Spanish success.com Virgin boss, Sir Richard Branson, was recently three of the four routes closing – Portsmouth to recovered says WTO Spain is now the spotted being given a guided tour of a Dover to Cherbourg/Le Havre/Caen. Portsmouth to Bilbao fastest growing Calais P&O ferry by the company’s Managing will continue. A Memorandum of Understanding has market in Europe Director. Chris Wales investigates been agreed with Brittany Ferries, subject to The World Tourism Organization (WTO) has for buying travel regulatory approval, with the objective to assume the compiled international tourism results from the first products online Rumours have been circulating in the City that as charter of Pride of Le Havre and Pride of Portsmouth to eight months of the year and reports a spectacular according to soon as the P&O ferry division is back into profit, offer an alternative service to Le Havre. rebound for tourism. lastminute.com. the group will dispose of it. • Short Sea – eight ships reduced to six, no route In the meeting of the WTO Strategic Group at the By David Ing Clearly, the P&O group’s strategy is to focus on its closures. Monaco World Summit on 27 October, port division, where they are one of the world’s • Irish Sea – Secretary-General of WTO, Francesco Latest figures estimate the total spend in the country major players. seven ships Frangialli presented the WTO World this year will be about €1.8 billion – well over Already, they have merged their cruise business into reduced to six, Tourism Barometer showing clearly that double the €817 million recorded in 2003 – Alfonso Carnival’s and reduced their property portfolio four routes tourism is firmly back on track. Castellano, Director General of the portal’s Spanish (currently, the luxury Spanish leisure resort La Manga reduced to On a global scale tourist arrivals are up arm, told a press conference organised by Delta. is on the market), so a disposal of the ferry division three. by 12 per cent when compared to the Unlike in other major markets, travel products are would appear to fit into their long-term strategy. • North Sea – no first eight months in 2003. Asia and the biggest online purchase in Spain, accounting for The recently announced fundamental business ship reductions Pacific saw the most remarkable push 39 per cent of all transactions. Of this, 63 per cent review of P&O Ferries is seen as vital to get the or route with an increase of 37 per cent while is flights – reflecting the huge growth in no-frills division back into profit. In the first half of 2004, it closures. North America returned to positive airlines – and 22 per cent is hotels and holiday reported a loss of £25.1 million – 2003 saw a In a recent letter figures (up 12 per cent) after three years packages. £19.9 million loss. to agents indicating of losses. While still well behind the major European market, To reduce the cash operating of the business by the Dover-Calais For the period from January to August, the UK, and world leader, the US, the Spanish over £100 million or 20 per cent, there will need 2005 proposed the number of international tourist market has shot up from virtually zero sales in to be a reduction of ships and routes. sailing schedule, arrivals is estimated to be around 526 2000, he added. After allowing for the anticipated loss of net revenue Ray Brunton, P&O million, corresponding to an increase of Then the talk was of the European travel market from the routes being closed and a reduction in Head of Coach 58 million arrivals (+12 per cent) being dominated by three or four major tour depreciation charges, the benefit to the operating result and Contracts, compared to the same period of 2003. operators. But in just four years it had grown “to a is estimated to be £55 million a year. The cost of said: “The six ferries will be operating 30 return Frangialli explained: “Tourism has recovered lot more than three leading actors. And none of the implementing the restructuring would be approximately crossings per day with a departure every 40 strongly in 2004, in particular in Asia and the Pacific traditional leaders is sufficiently (well) positioned in £60 million. Most of the savings are expected by mid- minutes at peak, giving the same capacity as 2004 and in the Americas, and is again in an ascendant on-line distribution.” 2005 and the remainder by early 2006. peak time.” curve. The fear factor has clearly faded away and Already, more than 60 per cent of clients to the P&O Chief Executive, Robert Wood, commented: travel confidence is back. Balearics and the ‘costas’ of peninsular Spain are “Tourist traffic, including on-board spend, accounts Brittany Ferries has just announced it will start a “Even though many threats remain, we see that making their own bookings. for half of total revenue. It continues to be of key Portsmouth to Cherbourg service on 3 January they have far less impact on tourism than before. One noticeable difference in the Spanish market is importance to the overall business, but the market 2005, using the luxury ferry Val de Loire. The The world economy is performing well, that whereas in most other countries women do has been adversely affected by fewer day trips and sailing schedule will be released next month. notwithstanding concerns about the volatility of oil 60 to 70 per cent of the buying, in Spain the figures the expansion of low-cost airlines.” prices. We trust that the continuing vigour of are reversed in favour of men, he said. The plans, where 1,200 people or 20 per cent of July to September 2004 car traffic through the emerging markets such as China, and the renewed As for Delta’s own online sales, Spain is currently the the workforce would lose their jobs, are subject to Channel was down from a summer 1998 peak of strength of the more established markets of the fifth biggest in percentage terms (nine per cent) in employee consultation. Other approvals are: 964,961 to 605,984. Coach carryings in the period US, Japan and Western Europe, will continue to Europe, where the UK leads at 30 per cent, said the • Western Channel – six ships reduced to one with were 13 per cent down on the same time last year. encourage travel”. airline’s Commercial Director for Spain, Rafael Ruiz.

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

Tanzania to attract German tourists

Tanzania is looking to lure tourists from German- assessing the country in order to double the current speaking countries. A team of senior Austrian travel number of 3,000 Austrian tourists booked to writers from the Austrian media, such as the Kurier, Tanzania. Die Presse, Kronen Leitung, Niederoesterreichische Mr Helmut Suitner, the Honorary Consul of the Nachrichten, Mindmaker and News, spent a week Republic of Austria in Tanzania, said: “The writers were sent on a mission to make Tanzania known to Austrians and other German-speaking tourists.” Tanzania sees the German- speaking countries as a good source of incoming tourism and it is a market that currently does not provide much German written literature, as it is all in English, to attract tourists. German-speaking tourists are most popular in other African destinations, Eurotunnel hit by especially Namibia, Iberia’s strategy pays Botswana, Zimbabwe and ‘easyJet of the seas’ off South Africa.

Channel tunnel operator Eurotunnel has had an Iberia is flying in more ways than one and all eyes interesting year, what with the ejection of its are on the Spanish airline after it achieved a 52 per Upgrade proves popular shareholders at a vengeful annual meeting in Paris in cent increase in the nine-month period from the April, and the remaining effects of the downturn in start of the year – despite rising fuel charges, a UK business travellers seem to be enjoying the ©Chris Sharps tourism due to the war in Iraq still affecting climate of terror and a host of industry-wide slight upgrade from economy class on British passenger numbers. But the new French-led problems. It made this possible largely by cutting Airways and Virgin Atlantic flights. According to management team has a new adversary in the back on-board services. travel management company BTI UK, there shape of SpeedFerries, the cut-price ferry firm Iberia’s net profit rose €167 million ($213 million) has been a 45 per cent increase in demand. dubbed ‘the easyJet of the seas’. and revenue was up four per cent at €3.59 billion Mike Platt, BTI UK Managing Director, said: “We Founded by Danish entrepreneur Curth Stavis, ($4.58 billion). have booked about 6,000 people in premium SpeedFerries uses a former Australian naval Earnings before interest, tax, depreciation, economy in the past year. We are finding that it catamaran to shuttle passengers between Dover in amortisation and plane rentals (EBITDAR) rose 10 per is being used by a lot of companies as an the UK and Boulogne in France for as little as £50 cent to €578 million ($737.3 million), while operating acceptable way of downgrading staff. Conversely for a return trip. No wonder the channel tunnel profit (EBIT) was up 24 per cent at €163 million some firms that had really cracked down on operator has lost revenue to it – not to mention (USD$207.9 million). spending are using it as an excuse for not putting the added distraction of the boom in budget The airline said its cash flow would improve in 2004, people back into business class.” airlines. when compared with 2003. Iberia has a partnership Eurotunnel’s operating revenue slipped four per with British Airways and the two are planning to cent to £140 million in the three months to combine operations on some routes, but they are September, marking clear deterioration against a building a ‘step-by-step’ bottom-up cooperative, as weak summer last year. The number of cars using opposed to an Air France-KLM-style merger. Eurotunnel’s shuttles fell by five per cent to 605,984, even though the overall cross-channel passenger market declined by just one per cent, and the company’s debts have now reached £6.4 billion, with shares down 1.25p to 20.5p. “These figures demonstrate that Eurotunnel’s Traditional methods previous strategy was not adjusted to market trends in terms of capacity and pricing,” said Jean-Louis battle online service Raymond, Eurotunnel Chief Executive. The company is in the process of submitting a About a third of business travellers choose to book three-year business plan to its bankers HSBS and through a travel agent as opposed to online, a Credit Lyonnais. If the lenders are not happy with survey has revealed. the plan, they could take steps to seize control of Seattle-based Travelport, which provides travel the business. management systems, and conducted the survey said: “In general, automated systems are thought to be cheaper than the fees charged for in-person arrangements, provided that employees use them.” However, reasons why people preferred the traditional methods over automated ones were that Do it yourself they felt more secure when a real person confirmed their booking and it was easier to make Singapore Airport has introduced what it claims is the changes in travel arrangements with a person world’s first fully-automated check-in and immigration rather than a machine. clearance system that uses biometric recognition Charlotte Blackwell, Vice President for Product and technology. The Civil Aviation Authority of Singapore Marketing for Travelport, concluded that travel (CAAS), Singapore Airlines (SIA) and the Immigration management companies will have to continue and Checkpoints Authority (ICA) are working together looking for faster and friendlier online and to jointly conduct a six-month trial of a system that automated options to lure the business travellers combines the check-in and immigration process. back online. Under the proposed new scheme, entitled FAST (fully automated seamless travel), passengers would not have to go through three different departure formalities before arriving in the departure lounge; rather, they would carry a micro-chipped identity card with the traveller’s facial and fingerprint details. This would mean instead of going to the check-in counter (to obtain a boarding pass and seat allocation), then police checkpoint, then immigration counter (for passport verification), the passenger would simply visit a one-stop kiosk in the FAST lane, enabling him to do all of these things in one go from a user-friendly interactive touch-screen monitor.

www.itij.co.uk International Travel Insurance Journal 18 ITICREVIEW ITIC International Travel Insurance Conference – Vienna 2004

these former athletes. Dr Okresek wanted to increase awareness about the aims of the organisation through ITIC. The main challenge of the organisation is raising capital, despite having long-term financial partners. The Foundation has traditionally been a passive organisation but it now needs to become pro- active. On a similar note, there is a new focus on the prevention of injuries rather than purely aftercare. Dear All, Winter sports and insurance implications This year proved to be a great year at ITIC. The Mike Williams – Conference moderator international travel market is on the up and delegates were short from serious injury. Mr Russell Dadson – Managing Director – Snowcard upbeat and buoyant about the coming year. Klammer himself was lucky to escape Insurance serious long-term damage and he set Vienna also proved to be one of the best and most popular up the charity in order to offer a Russell Dadson had some great statistical venues we have used for the conference. place to go for help when athletes information to share on skiing and snowboarding- find themselves without a support related injuries from an insurance point of view. Generally, the conference sessions were well received, and network after they suffer life- He wanted to begin by dispelling some myths changing injuries, which can often around the dangers and subsequent implications by all accounts, the networking was pretty good too! leave them wheelchair bound. for claims. Champions such as Sasha Benes Firstly, the sports of skiing and snowboarding are I’d like to thank everybody who worked on, or attended the (ice hockey), Alexander Sperr not suffering from high death rates. Accidents in conference, for making it such a success and I’d also like to (soccer), Enrico Wiedner general are down 50 per cent in the last twenty wish everybody the very best for the coming year. (toboggan) and Carsten Pelzmann years for various reasons – from education and (speedway) are just a few who have controlled environments to safety equipment. I look forward to seeing you all again next year. reached the top of their game only Claims frequency has, in fact, stabilised to the to be cut down by serious injury. point where loss ratios are predictable; add to Best regards, When this happens, the change in which, snowboarding has boosted sizable growth in lifestyle, not just physically but the insurance market. Ian Cameron also in terms of social network The most common injuries sustained are lower limb injuries for the skier and upper limb injuries ITIC Conference Chairman for the snowboarder, although head and neck injuries are slightly higher for snowboarders. Most claims are for minor injuries and these are significant in number, but the number of serious incidents is not high. It is worth noting that skiers’ Vienna proved to be a welcome venue for the claims are often higher in cost and this leads to delegates of the 2004 International Travel loading on policies. Insurance Conference. Whether it was the ostentatious decadence of the location’s architecture borne from old empire, the tourist- laden horse and carriages weaving through traffic or the fact it snowed for a day in one of Europe’s most romantic of cities, the mood was set and stayed the course. The usual suspects

and a few new faces gathered together for Wilhem Okresek welcome drinks (sponsored by Hygeia) after registration and, with a sense of anticipation, the and financial loss, is dramatic and can be terrifying. twelfth ITIC began. Richard Forsyth breaks down Dr Okresek gives an extreme example to illustrate what the speakers had to say the point, namely Bill Johnson. The former Olympic gold medal winner suffered brain damage DAY 1 – 10 November from a skiing accident and was forced to sell his medal to raise some money. World champions can The ups and downs of skiing soon fall to poverty level when unable to compete. The Franz Klammer Foundation makes donations Dr Wilhem Okresek – The Franz Klammer to people such as Mr Johnson out of what they Foundation regard as a moral obligation to a person who has achieved so much representing their country. They The Franz Klammer Foundation is a charity for simply don’t see it as right that these people are injured athletes. It offers athletes financial and abandoned when they are injured. The psychological support when their careers are cut Foundation’s aim is to add meaning to the lives of

Russell Dadson International Travel Insurance Journal www.itij.co.uk ITICREVIEW 19

Resort management has improved greatly in the last 25 years and this aids safety, but there are problems with the rise in the number of people using the pistes. The busier they are,

Prf. Dr Christian Fink – Dept. of trauma surgery & sports medicine – Innsbruk Medical University

Dr Fink uses Innsbruk Medical University Hospital (located at the foot of the mountains) as a measure for typical injury numbers and typical types of injury. The hospital is the biggest trauma hospital in western Austria. Within Innsbruk, the admissions for winter sports injuries were 2,678 out of a total of 41,123 admissions in 2002/03 and 2,503 out of 40,265 admissions for 2003/04 the more chance of collisions, and collisions are the (period from December to April). Christian Fink most common factor in these claims. Although it is true that 75 per cent of accidents are routine falls, The top five snowboarding injuries are: The top five skiing injuries are: 25 per cent of accidents are the result of a collision and, out of this number, 60-70 per cent result in a 1. Distal radius fracture 15.3% 1. Anterior cruciate ligament 12.9% hospital admission. Partly to blame, maybe, is the 2. Contusions/ sprains: wrist 10.1% 2. Other knee injuries 20.0% way that snowboarders and skiers do not always 3. Shoulder contusions/sprains 8.3% 3. Shoulder contusion 5.3% mix well – from the way they treat their sport to 4. Cervical spine sprain 7.1% 4. Cervical spine sprain 4.5% the way they treat other mountain-users. 5. Knee contusion 5.3% 5. Chest contusion 4.4% Snowboarders are younger, more carefree and anti- establishment, meaning they don’t always care about insurance and yet enjoy the risks of danger. Unsurprisingly, experience is an important factor in injury rate. It turns out that 25 per cent of injuries are sustained on the first winter sports holiday and beginner snowboarders account for 50 per cent of all snowboarder injuries. Intermediary skiers should also be watched, however, as when they travel fast they are more likely to clash or fall than experienced or mature skiers. Dadson argues that skiing needs more international regulation (the setting up of a code of conduct in the first place), accountability (plus policing of offenders), and that skiers need a more enforceable education – much the same as PADI courses and licenses for scuba divers. Although diving has more incidence of death, skiing has more accidents; but at present there is no compulsion to attend ski school. Insurance for these activities should be compulsory: current figures show that 20 per cent of skiers are uninsured when they take to the snow. Safety equipment, especially when taking into account lack of experience, should also be compulsory – such as helmets and wrist guards. Wrist guards would cut down the high injury rate of snowboarders significantly. Insurers need to take this information into account and perhaps offer discounts for the wearing of safety gear such as wrist protectors. There should also be benefits for proven skills and knowledge, and guidance on organisation and management of ski slopes to cut down on collisions.

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

alcohol content in relation to insurance claims. The but as Per puts it, “brain damage is un-cool.” US is the forerunner today in policing slopes and Sales and marketing clinic: has a punishment system where ski-passes are taken treatment of your ailing away if mountain users are irresponsible and this promotional campaign could well be the way forward for Europe. Mike Southon – Chairman – The Beermat Per-Olof Landström, MD - Consultant in Transport Academy and Insurance Medicine – SOS-International Mike Southon authored the UK best-seller Per-Olof Landström is a doctor in an assistance book The Beermat Entrepreneur and has organisation who regularly sees injuries such as conjured up a philosophy of marketing, fractures from ski accidents. He highlights the which is, in a nutshell: keep the message simple, short and personal when trying to sell something. He starts by coining the phrase ‘elevator pitch’. Imagine, he begins, that you are in a lift with your customer; you have a few floors to inappropriate customer targeting, for instance? travel and you have only a couple of lines to Manton illustrates some of his guiding principals. impress and get your message across. This is He pushes for communication to be as personal as essentially the so-called ‘beermat’ philosophy. You possible to the client base in any way this can be write on a beermat two to three lines that explain achieved. Another important principal is to think what is good about your product or service, thus ‘value’ instead of ‘price’ when presenting your getting to the heart of the matter fast. product or service. Pledge of the brand is key to Skiing and snowboarding account for the vast The fact is, he explains with vigour, “everyone success: a pledge is a promise that must be majority of winter sports injuries. The most hates cold-calling and everyone hates cold callers.” delivered on if the brand is to be equated with prevalent injuries involve the upper limbs (mainly To make an effective point, write new clients a quality and trust. Lastly, never make rash snowboarding), followed closely by lower limbs, personal four line e-mail. Make sure it starts with ‘I assumptions without fully looking into why you head, spine, and then chest, followed by pelvis. Per-Olof Landström have arrived at a conclusion. This has been the consistent case for the last three Once the problem is understood, the years, confirming Dadson’s conviction in the differences in medical expertise and opinion and next step is vital. You have the chance to previous presentation that wrists are highly how this impacts on insurance. This is especially apply a little first aid, as Manton put it, vulnerable and protection would greatly reduce the frustrating when there is a difference of opinion to give it intensive care or there’s always amount of injuries dealt with if enforced. “Wrist between the assistance doctor and the treating the grim option (but sometimes the guards for snowboarders are essential to reduce doctor in the private hospital. “The problem is,” most appropriate choice) of burying it injuries,” asserts Fink. he illustrates, “one doctor is trying to earn some completely! It is best to be completely In skiing, knee injuries are common and make up money and the other is trying to save some honest about a situation, as, if it’s a 20-30 per cent of all ski injuries. There can be up to money.” bleak one, the sooner you admit it, the nine months of follow-up physical therapy on knee Those different objectives often lead to better for your chances of recovery. You injuries. Many return to the slopes and aggravate or disagreement. When it comes to winter sports, can measure a campaign’s success in repeat old injuries, but there is nothing that can be those differences often lead to arguments about terms of sales: falling sales usually speaks done to prevent this in many cases, due to the whether to treat immediately or to repatriate for volumes about a ‘dud’ campaign no determination of skiers/snowboarders to return to treatment. These arguments centre primarily on matter how good you may think it is. their beloved sport. fractures of the collarbone, and injuries to knee For a company to undertake an The age demographics were as expected for the and shoulder ligaments. advertising campaign it has to understand main two winter sports: skiers were older – around Ski accident claims can be high, but many what its business objectives are in the first 34, and snowboarders were on average 20 years patients don’t require the surgery that they are old. Inpatient treatment was marginally higher for given. For instance, it is rarely ever necessary to noticed that…’ and make a reference to their type snowboarders, but for skiing, outpatient treatment operate on fractures of the collarbone – except of business; follow that with your two-line ‘elevator was slightly higher. where the skin is broken and there are pitch’ e.g. ‘we are the most prolific company that One of the more unusual statistics that Fink complications – but some doctors will recommend does…’ Make sure you offer proof, such as a produced was the time of day that the majority of the most expensive treatment for the sake of the reference/endorsement from your favourite existing injuries occurred. Most occurred between 2P.M. and payment involved. customer. Finally, ask ‘can you meet up on…as I’ll 4 P.M. and the second most accident prone period Moving onto the question of repatriation, many be in the area…’ Send 100 personally targeted was 4P.M. to 6 P.M. Whether this is down to late patients require this but airlines are not always emails and you could very well have the return rate arrivals at the slope (possibly due to hard partying equipped to the standards required and need extra that Mike enjoyed the first time he tried this the night before) or less-focused skiers who are supplies, such as more oxygen. Airlines should technique – 16 out of 100. becoming more clumsy and braver after enjoying the take more responsibility for their customers in Mike Southon also believes you can double your slopes for the best part of the day has yet to be these circumstances, as they have an obligation to sales immediately with existing clients by asking analysed, but there is a definite trend. Alcohol does return passengers. your favourite customers what they would spend undoubtedly play a part, with many enjoying an Landström believes when passengers are injured, their money on – i.e. ‘what they see of value that early drink before or during their sporting activities. airlines can be very unhelpful, besides being ill you can supply them with above and beyond what Ed Phillips A factor that has affected insurance greatly is the you are already doing’. You simply work out how regional helicopter air ambulance business, which is to deliver this and charge accordingly. place – this is the principal that makes all the highly competitive in the Tyrol. For minor injuries, difference. Keeping this notion at the forefront, will helicopters are often called in for an airlift. A Steve Manton – Chief Executive – M Consulting Ltd lead the marketing campaign in the correct direction. controlling body is needed to make sure Ed Philips – Creative Director – M Consulting Ltd From here, you have to create a unity in your unnecessary airlifts are not standard. Patients and marketing strategies in pricing, PR, media and insurers have to foot the bill for the air ambulance M Consulting specialises in aspects of strategy market distribution. in situations that are not deemed to be an development, branding, marketing, design and PR. Brand identity is the cornerstone of marketing and emergency or could have been dealt with in a Good business, they believe, always boils down to this must be achieved through advertising, direct different way. The question is: who is qualified to good marketing. The product is almost irrelevant – mail, e-commerce and promotional material. Above take the responsibility to make these kind of it is all about the strategy to sell it, and this goes all, when approaching your campaign, you must be decisions on the mountainside where these creative. Creative and original ways to project your accidents happen? message are what will get you noticed and you can Insurers need to know whether alcohol is involved do this with use of colour, slogan, iconic imagery; the in injuries on the slopes – there is currently no ways and methods are as unlimited as imagination. obligation to take a blood or urine samples for

Mike Soouthon

equipped, and this often means an expensive air ambulance is requested. He wants to see more publicity to motivate airlines into addressing the issue of responsibility for passengers. People have a basic right to be able to return to their own

country if they are hurt. Steve Manton On a last, and recurring point, the issue of making safety equipment, such as helmets, compulsory in all for all businesses, everywhere. resorts would dramatically help prevent hospital First, you have to identify the problems with your admissions. The problem centres on fashion-conscious existing strategy, which requires a careful and people who think they will be perceived as ‘un-cool’, thoughtful diagnosis. Is there a problem of

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

DAY 2 – 11 November they be if they were genuinely lost?” It’s important, list and they would, hence, be rung first. It he said, to try and recognise the real claims from shows you the nature of the competition – Legal issues & direction the false ones in such situations. it’s fierce. Often there would be companies Cy then turned his focus to the question of with AAA at the beginning of their name. ‘direction’, remembering that he used to Some guests, he reports, did suffer badly recommend certain clinics over other clinics. So from over-treatment, which meant staying why did he push clients in those directions? When in hospital for a week on a drip after first greeting the guests on arrival, a tour rep would reporting a simple headache. This was a recommend a medical clinic as part of the fairly common scam. introduction speech. An information card would Cy ended on an amusing story about a also be put into the welcome pack so that the claim he had to assist in where a guest guests would carry the contact information with ‘accidentally’ fell onto a toilet brush handle them at all times for medical assistance. And there in a hotel and got it lodged deep into his was a certain amount of coercion with regards to rectum. Obviously, the claim was denied, the information the tour reps were given. due to the fact that it was thought “I remember thinking that this was the only impossible the man could have ‘slipped’ onto such result of financial inducement. The reason for this company that was available,” he says. But that a long device so neatly… it boggles the mind! is, simply put, that a hospital with more patients Cy Flood wasn’t the case. It was woven into the training makes more money. procedure by the resort manager. There were other Recoveries and subrogation Travel insurers should be concerned about patient Direction contributing factors that led to ‘direction’. One direction. They would prefer to pay less to a state factor Cy detailed was the incentives offered by hospital, and would prefer the insured to use the Cy Flood – author of It Shouldn’t Happen to a Rep some clinics. As a resort manager, you would want E111, but there is serious concern about over- to get your team together for a night out at the treatment by devious medical staff, which leads to Cy Flood’s book is basically a collection of memoirs beginning of the season, but you would not have large bills and sometimes to unnecessary invasive of his years in Ibiza and Benidorm as a tour rep the budget to do this on a grand scale, so a medical treatment. and he recalls them with relish to the conference company would contribute financially and, as a Direction such as this is a serious problem. There collective. Cy recalls a very poignant story about result, join in initial meetings. They paid for have been cases where a receptionist has pretended to how, after a flood at the hotel from which he was everything, such as drinks and food. Also, many call a state hospital and instead she calls a private one working, many of the holidaymakers formed an ex-reps ended up working for the medical (as she is on commission). Sometimes, a state enormous queue to make claims on very expensive company, which meant a partnership was being ambulance will turn up but will bypass the state personal items that he suspected were not only forged. Gifts changed hands – small things like hospital in favour of a private one. Tour reps will never lost, but never existed. One person he mobile phone holders, pens and so forth, but it all direct patients to hospitals that are private, despite remembers gave a claim form in to him with the aided the relationship. The medical company Cy state ones being as close and as good. In some cases, a Costas Andrea spelling of Gucci as ‘gewchi’ when trying to get Flood worked for would even pay for extra cars for higher rate of billing is applied to tourists when money back from an alleged lost watch. This type the tour reps. compared to locals. Over-treatment is a well-known of claim fraud is very easy to commit and Cy was Even more scandalous was the fact that hotel Costas Andrea -– Partner – Penningtons Solicitors offence for hospitals on the make, giving unnecessary suspect of a large range of claims that came in. receptionists would receive commissions for sending extensive treatment to rack up the charges. “These people were amazing,” he chuckled guests to certain hospitals. After the late 90s, this Staying on the subject of patient direction, but this So there is certainly justification for insurers to feel sarcastically, “they came on holiday dressed in a did change to a degree when tour reps were time from a legal stance, Costas asked the question: anxious. shell-suit or Speedos and yet they exuded all this discouraged from recommending just one medical “Can the tour operator be sued for a hospital’s But, Costas confirms, insurers can do more to secret personal wealth and I had to champion their facility and had to supply lists of what was available. negligence?” recover their costs. There is a legal framework that cause. They would claim for Armani suits and the What this did was create a huge amount of clinics By direction, he is referring specifically to the case makes tour operators liable in some circumstances like. The streets of the Med are paved with Armani starting their names with the letter ‘A’ so their where an injured, insured traveller is directed to for the patient direction they give. Under the and Gucci,” he joked, “because where else would number would appear at the top of the alphabetical one hospital in preference to another, usually as a Package Travel, Package Holidays and Package Tour

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

induced referrals to clinics occurs in the industry processes involved in indemnification and means it is just a matter of time until a tour negligence. operator is sued in circumstances like these. Defining indemnification, Hudson referred to Costas believes that (in the UK) insurers are Black Law’s Dictionary (fourth edition) generally relatively apathetic when it comes to definitions i.e. ‘to secure against loss or to recovering costs relating to medical expenses. It’s reimburse someone who has made a loss’. A difficult to evaluate how much money is being lost contract of indemnity, therefore, is a contract from insurers not bothering to recover costs, but, as of assurance by which one engages to secure an indicator, a study was carried out that another against a loss. investigated 11, 000 claims and found that 150 had potential for recovered costs (1.36 per cent). Indemnification: This amounted to £250,000 (with an average A typical indemnification provision will go as individual cost of £1,666). Insurers would benefit follows: from being more proactive when investigating ‘Green Company shall defend, indemnify and recovering costs. hold harmless Red Company and all agents, There is a mistrust of lawyers, which may be employees, officers, successors and assigns hindering insurers from pursuing claims, but this thereof, from and against any and all losses, should be overcome, especially where lawyers’ costs claims, demands, suits, judgments, costs, can also be recovered. damages (including compensatory or punitive damages), expenses (including attorney’s fees Company liability and costs of litigation), and any other liabilities of any nature, arising out of or from, resulting from, connected with, or in any way Regulations 1992 (Package Travel Regulations – relating to (i) Green Company’s performance throughout the EU there are similar statutes), a of its duties under this Agreement, (ii) any act tour operator is liable for the acts and omissions of or omission of Green Company that results in its servants, agents or suppliers. There are, however, a claim for damages against Red Company, or obstacles in suing a tour operator. You have to (iii) Green Company’s failure to duly perform determine if the clinic is a servant or supplier, and and observe any duty, term, provision or whether the provision of these medical services is condition of this Agreement.’ part of the package contract. This is not usually On initial read-through, this looks pretty clear-cut and can be dependent on what is in the secure, but guess again. The following wording is such as an assistance company, has acted brochure or what material is passed onto the guests significantly better… reasonably, relying on the principal of what a on arrival. For a successful claim against a tour ‘Green Company shall defend, indemnify and hold reasonable or prudent person would do in the operator, there are criteria that have to be met, harmless Red Company and all agents, employees, circumstances. which begins when the insured seeks assistance officers, successors and assigns thereof, from and Defining industry standards is not an easy task, but from the tour operator or hotel staff for medical against any and all losses, claims, demands, suits, there are procedures that need to be taken seriously. Tom Hudson attention. judgments, costs, damages (including An assistance co-ordinator should take down the Financial inducements, then, can lead to a scenario compensatory or punitive damages), expenses necessary information on the caller’s medical where the guest is referred to a particular private Tom Hudson – General Counsel – MEDEX (including attorney’s fees and costs of litigation), condition to determine whether the caller needs to be clinic. At the same time, there could be easier Assistance Corporation and any other liabilities of any nature, founded or referred to a doctor. The doctor then needs to be access to an alternative, state hospital. The private unfounded, arising out of or from, resulting from, credentialed – and recently (not more than three years clinic performs negligently and the treatment leads Tom Hudson made some useful points about legal connected with, or in any way relating to (i) any ago) or he may have been charged with malpractice to serious personal injury. The fact that financially liability, particularly on the legal aspects and act or omission of Green Company that (a) is since, or he may even have died. There should also be alleged to constitute negligent or intentional a database with the CV/resume of the doctor – with tortious conduct and (b) results in a claim for pertinent professional information. These safeguards damages against Red Company where there are no can determine whether the assistance company is independent grounds for liability on the part of negligent in the case of a patient being injured from Red Company, or (ii) Green Company’s failure to the treatment he received from the doctor to which duly and properly perform its duties under, or to he was referred by the assistance company. If the observe any provision of, this Agreement.’ Simply adding two lines to the literature can make significant legal differences in terms of protection in the eyes of the law. Making the contractual wording legally watertight is harder than you may think, but there are clearly better ways of phrasing some existing documentation to ensure there won’t be any nasty surprises in court. The basic legal disclaimers, it should be realised, are of limited value, as you can’t disclaim the results of your own negligence.

Defining negligence: A good example of how the ‘negligence’ argument is drawn can be seen in the case where a man slips on a banana skin on a railway platform and injuries Dick Atkins himself. He tries to sue the rail network for not cleaning up the skin. This is not a straight-forward doctor has been dead for almost three years and thus case and the evidence for liability lies in the skin cannot treat the patient, this is like the example of the itself i.e. if it is rotten, it may mean it has been rotten banana peel – it’s a checkable fact that has been there for a long time and therefore there was unchecked for a long time. negligence from the rail network for not cleaning it Whether the assistance company has a duty to up sooner. If it is a new skin, maybe it was only indemnify the underwriter will depend on the there a minute or two and the authorities did not application of these standard safeguards. have reasonable time to clean it up. The detail, in this case of measuring ‘reasonable’ response time, is My favourite claims the key to working out negligence in relation to many claims. Dick Atkins – Legal Council – International At the end of the day, the law can feed off different Recoveries aspects of a story and so there is rarely a case that cannot be turned on its heels with regards to Dick’s most infamous client has to be Billy Hayes, perception of the truth. who became the real life anti-hero of the Oliver The law around the world has different concepts Stone film Midnight Express. Billy was arrested in and systems no matter how much the EU and Turkey running drugs and thrown into a harsh other international bodies try to harmonise things, Turkish jail where he remained for five years. Just and there will always be room to argue in most before his release the Turkish authorities raised the given cases. As the Germans say: “There is no law sentence for his offence to 25 years. That was without a loophole, for him that can find it.” Or Dick’s first international case. take the Russian expression of legal process, says Dick was trying to arrange a prisoner transfer treaty, Hudson: “Fear not the law but the judge.” which would allow him to serve his time in the US. Most cases are stripped down to whether an ‘agent’, Before it went into affect Billy escaped, wrote a

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

book on his experience and DAY 3 – 12 November between all of the organisations involved. the film evolved as a result. Communication is the key to making the correct Billy is now living in the From admissions to repatriation: judgments. Communication should produce a US having made something whose medical opinion should coherent flow of information, in the form of of his life since the film on prevail? updates on medical condition, including word on him was made and still calls good and bad changes and the needs that may be Dick for advice on whether Juan Bosco Rodriguez Hurtado – Director – necessary during a journey. his Interpol warrant for Clinica Salus Benalmadena The objective should be, while the patient receives extradition is still in effect optimum care at the resort, the resources of the from Turkey when he It is important to first consider whose interests insurance, assistance and repatriation companies intends to travel abroad. are involved when asking this question because must be utilised to their maximum potential with Always a colourful different parties want to defend their own the minimum cost. character on the stage, the interests in the situation. A patient represents irrepressible Dick Atkins business interests for hospitals and insurers and Geoff Tothill – Chief Medical Officer – FirstAssist (our very own columnist) so everyone wants to dominate the situation. delivered a mixture of 10 But, and this is an important but, the patient is Tothill defends insurers from the cold ‘number cases that he had been at the heart of the matter and it is their best crunching’ image that often taints them, saying directly involved in – some interests that all sides must respect. Where that insurance companies do often genuinely care of them harrowing. They making money seems to prevail over care for the about their clients. Few underwriters actually range from westerner rip-offs, tales of torture for up. He was arrested immediately and charged with patient, as the driving factor in decision-making, protest saying ‘you are defending the patient’. confessions and what happens when you hire the one of the most serious crimes in the country. then alternative services should be sought. However, when it comes to duty of care, if the wrong legal representation, but there are some cases If he had been arrested for murder or robbing The fact is there are many nationalities, languages assistance company accepts the responsibility to that stick out as food for thought when it comes to money he would have been able to return to the and criteria for treatment involved in repatriation. manage a case through the medical system, they do aiding travellers in need. US to do his prison time under the prisoner Getting the answer right when asking whose have ultimate responsibility for the patient. Dick Atkins wanted to illustrate cases that showed transfer treaty, but he was found guilty of the opinion should prevail is important for many The question perhaps should be: who does the what a legal hotline such as his service, can achieve. crime, which meant he had to do his time in a reasons: it costs money, it affects many implicated patient trust? It is the assistance companies that act Out of the ten fascinating cases, there were three prison in the notorious Thai system. businesses and it affects millions of people every that really drove home how important it was to The man had apparently suffered psychiatric year. The situation may be more complex in time have access to international assistance. problems his whole life and so Atkins set up three as people are travelling more and demand more The first case that showed the difficulties of dealing days of calls to a psychiatrist in the US, who from their medical attention when it is needed. with foreign legal procedures he called the Latin subsequently found that when the accused was 14 Repatriation can be requested for reasons such as American collision syndrome. he had psychiatric treatment for breaking dishes or the serious nature of the patient’s condition, or for In Latin America, if a person is in an automobile ripping up money. The report was shown to the reasons of welfare – will they receive superior care accident and one or more people are seriously Thai police royal psychiatrist and the client was repatriated? injured then all the drivers are taken into custody taken to a psychiatric hospital where the conditions There are a number of decisions that should be and put in jail by the police until it is determined were much better than the prison. Within three agreed such as: is a stretcher needed? Who should who is at fault. Sometimes it takes up to four weeks the Thai psychiatrists agreed that the man accompany the patient medically and personally? months to finish the accident report. did not intentionally disrespect the king by his What facilities are needed? Will other passengers be “We got a call from a man through an assistance actions, but they were a result of his psychiatric affected? company who had been working in Venezuela and problems and two days later he was released. Each patient is different and case-by-case was involved in such an accident. In Venezuela, the “The laws all over are very, very different,” Dick judgments should be made on their individual law, up to this year, was if one drop of blood was Atkins warned. merits. Waiting for repatriation can be a costly spilled in an accident everybody involved was Finally, we came to an on-going case involving air business if conditions and symptoms worsen, so arrested. In this case the driver had been stopped, piracy. A US couple in the South Pacific were on timing is very important. There is a need for trust Geoff Tothill and another local man had driven into him. holiday and were both hurt, resulting in fractures “That driver, who lived in Venezuela, was taken to the hospital with injuries but our driver was taken to jail. Fortunately he had his cell phone on him. The assistance company put together a team that would show our concern and our force and show we would do everything possible to ensure he got out of that hellhole of a jail. “We got two co-workers to round-up $2,500 to make bail, we got the insurance agent who wrote the liability policy and he came there. We got through to the mayor who met the team there at the jail and a councilman. Finally, we made sure a physician attended so that if it looked like bail was going to be denied, the physician could demand the man needed to be checked in case he needed treatment. He would then be taken to the Juan Bosco Rodriguez Hurtado hospital and this was infinitely better than the jail. “The coordinated effort meant he was out of jail in and internal bleeding. The assistance company told 24 hours and the moral of this tale is to always them they would be taken to a western-style have a charged cell phone on you in Venezuela if hospital with western-trained doctors, but the rich you are driving!” parents wanted them back in the US, so arranged Another case of Dick’s shows how for repatriation via air ambulance from California. misunderstanding cultural differences can lead to The air ambulance doctor disagreed with the serious consequences. In Thailand, there are strict treating physicians and decided this was an rules about defacing or disrespecting the local emergency and they had to be taken back to the money as it has an image of the Thai king upon it. US or they would die. The policy said they could Dick recalled a call he took from a man whose only repatriate through the assistance company to brother was jailed in Bangkok. Their father had the nearest place, which was Australia. The father suffered a heart attack, but at the airport the charged the bill to his American Express card. brother was held in queue after queue, which made The insurance company eventually received a bill him frustrated. He had two US dollars worth of from the husband for over $300,000 and then an Thai Bahts and he was so aggravated he tore them exact same bill for an additional $300,000 from the wife who was on the same plane. This was for a repatriation that could have been done for $100,000, but was now standing at an enormous $600,000. It was turned down and a lawsuit was brought to the insurance company, who are aggressively defending it. Investigations have so far unearthed false invoices, fraudulent behaviour, not going to the nearest place as the policy demanded, and it was found that the situation was not an emergency after all. This ‘air piracy’, a form of insurance fraud and a serious crime, can hurt insurance companies if unchecked. Fiona McDonald – Conference moderator

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

on long-haul flights the advantages are that a You have to start by making insurance patient need take only one trip instead of breaking products clear and easy to understand, the journey up for more fuel in different countries in the policy language, and also make as an air ambulance would need to. This can save forms customer-focused in their design up to 50 per cent on flight time for long-haul (this includes the settlement process). repatriations. These compartments are cost-effective Understand what you are going to cover on many levels, from fuel, to time, to amount of from the beginning and segregate claims medical supplies used (due to shorter journeys). into categories to make them clear. Trips can be up to three-quarters cheaper than an E-commerce is the most obvious way to air ambulance in costs. save time and money. This begins with electronic verification of the coverage Paying a claim – Streamlining the and plan details and must continue procedures: how efficient are we? through to manage the whole process from end-to-end, including measures to

automatically detect fraud. Automation Julie Remmington – Conference moderator can de-personalise the service provided so there must always be a human Consolidated billing on a monthly Jan Gebhard accessible when required by the basis with hospitals and physicians as the mediators and therefore they are assuming customer. will smooth processing, the trust of their client. There are so many Cost containment strategy determining re-imbursements and questions going through the mind of the patient must be integrated into case spot discounts where appropriate. when injured abroad about what standard of care management and decision- Copies of reports and coversheets they can expect to receive and what they are going making. should be included in the billing to face before returning home that management of Developing ways of reporting process as verification and disputes this process and the fears of the client should be management of claims is should be resolved willingly. the prime motivation of assistance co-coordinators. important to keep standards as When coverage is authorized the Tothill believes assistance companies should show they should be. payer should be oriented to the governance. Eliminate pay and chase! services that are available and their There is now a drive by many governing bodies to Prompt pay makes everything care needs should be determined.

publish international guidelines for doctors to use in else possible. With this in David Stirling – Conference moderator When a patient is unscheduled the Martha Turnbull these complicated cases, which is a welcome move. mind, workflow and cash flow provider has a duty to treat anyway should be understood and improved where there is regardless of ability to pay or prior checks and Dr Jan Gebhard – Head of Medical Service Martha Turnbull – Operations Director – RBC room. screening. When involving children the parent Hamburg – Lufthansa Travel Insurance Company should produce an insurance card. Electronic processing of bills can cut down time, a Gebhard describes the advantages of Lufthansa’s Financial services company RBC is North America’s point that all the speakers have realised this patient transport compartment fitted on their tenth largest bank by market capitalization and conference. standard passenger jets (which takes the space of sixth by assets, serving 12 million personal, The provider can retroactively seek verification and twelve regular passenger seats). The compartments business and public sector clients around the world authorisation, although at this stage there is no are separated off from the main seating areas and from offices in 30 countries. The travel side insures guarantee of payment, but the provider must assist resemble a small intensive care room. They are seen over 3.5 million travelers a year, which means regardless. as a good cheap alternative to the expensive air efficient processes are essential when dealing with If payment is denied, an ongoing relationship must ambulances and are available on both the Boeing such a high capacity of customer traffic. still be established between provider and payer. 747-400 and the Airbus A340-300/600. Operating So what does efficiency look like, she poses? There can be cases where fraudulent intent has meant that people have purchased travel insurance to gain access to American healthcare for chronic life-threatening conditions, and these cases can lead to denial of payment. In conclusion, direct communication between the payer and the provider minimises the risk of

Carol Sayles misunderstanding and improves the likelihood of a

Do not underestimate the importance of your human resources, and invest in them Martha says with conviction. Staff must have the ability to think about a claim and not just process it. Engage, empower and coach your employees so they develop and improve, and so will the work they are doing.

Carol Sayles – Director of International Health Services – Children’s hospital Boston

“Streamlining the payment process doesn’t have to be painful!” Sayles informs the conference. Screening is important – medically and financially for scheduled international patients. As soon as someone is accepted then a treatment plan can be identified, an estimate prepared and the deposit taken. Treatment can begin and should include case Stella Jones management, complete with regular updates. successful and expedient resolution. Payers and patients must assume some share in the financial liability – the provider cannot assume all the risk Thank you to the ITIC sponsors with no control over the outcome.

Stella Jones – Claims Manager – Europ Conference bags – Funeralcare International Assistance

Conference badges – Medsave Europ Assistance is a world leader in providing assistance products and services and has 34 Group Welcome function – Hygeia Corporation companies worldwide. They deal with an average of 65,000 travel claims a year. Message board – IMG Stella Jones illustrated key problems in streamlining payment, such as the added confusion of dealing in Lunchtime drinks – AVUS Group many forms of currency and different languages when dealing with travel insurance, invoice Post-it notes – WTP Assist auditing and the confrontational approach in managing claims. Awards dinner – ITIJ A typical customer presents this argument: “How would I describe an efficient claim as a customer? I

International Travel Insurance Journal www.itij.co.uk ITICREVIEW 25

putting the assistance co- Insurer/Underwriter of the year ordinators in the first line. ‘Customers in need of INDUSTRY assistance are now met by staff speaking their own language. The number of customers AWARDS 2004 calling to hear how their case is Direct Line progressing has fallen by 30 per ‘What makes our travel insurance policy cent and the number of superior? We constantly challenge our outgoing calls during summer WINNERS systems and processes to strive to improve peak season has fallen by 600 the products and services we offer to our per day. If the policy holder customers. We are one of the few insurers to already has an ongoing case, offer customers a legal protection service. the telephone system will Automatically included in our cover at no identify the phone number and extra charge, this service entitles customers refer him to the relevant co-ordinator.’ Air Ambulance of the year with up to £50,000 in legal fees to pursue a valid claim of a holiday contractual dispute, such as a misleading brochure description or 3RD ANNUAL poor food hygiene standards. Provider of the year ‘We offer the most sophisticated medical screening process in the industry, which means CEREMONY we can offer cover to our customers where our Air Ambulance Specialists. competitors can’t, at affordable prices.’ Accomplished marketing, sales, medical staff and training in a two year period. ‘We have developed a business model that Healix International works extremely well; we have hired the best Assistance/Claims Handler of ‘Client relationships are excellent.’ medical team in the country; and we utilise the year ‘Throughout its existence, Healix had never the most up-to-date medical equipment lost a client.’ available, including a Dadaistic human ‘Healix can justifiably claim to have serviced patient simulator, which allows our medical the current requirement for the screening of staff to perform ongoing intubations and IV travellers from the beginning. It developed starts.’ one of the earliest sets of risk rating ‘Accreditation and involvement in the SOS International algorithms and now provides over 80 per industry and trade bodies include CAMTS, Emergency centre – new ways of serving the cent of screening services in the UK. Similar who reviewed our state-of-the-art dispatch customer faster and better. services are provided in Canada. Such centre where we went through a simulated ‘SOS uses best-of-breed solutions to deliver market penetration, together with claims disaster plan, AAMES, ASMA, AMPA, ASTNA, fast and effective results assessment, vis a vis premium AAP, AACN and AARC.’ to meet every need of renewal and investment in ‘Our medical team’s expertise and industry our outsourcing Web-enabled IT systems, knowledge averages out at about 11 years.’ partners. We contract means it has become the ‘We are one of the most experienced and with experienced leading European supplier of knowledgeable air ambulance companies in providers who can work risk rating services. the US.’ to our aggressive ‘All staff, other than IT and timescales in delivering accounts, are either doctors first-class customer- or nurses and all have oriented solutions. experience of evacuations and ‘Until March 2004, every case management and customer who called understand the need of both SOS was met by call the patient and insurer. In centre staff. Based on the information given, 2004, it will manage 30,000 cases and the case was passed to an assistance co- evacuate 2,000 patients. As a consequence, ordinator with the relevant qualifications to its experience and ‘real time knowledge’ of assist. However, since we work with the competences and limitations of customers of many different nationalities, we healthcare providers worldwide, including felt that we could improve our service by hospitals and physicians, is second to none’.

would require simple claims In the same survey, 94 per cent of setting the mood. Champagne-fueled information provision online or via the people rated speed of dancing, bar hangers and a general winding telephone, updates regarding the settlement as highly important, so down ensued as ITIC faded into the Friday progress of my claim via text, email, efficiency when processing claims is night. phone or letter dependant on my of great value. Incredibly, Vernon, our charismatic salesman, choice and resolution of my claim The new European health card may needed repatriation the following day due to within a reasonable time.” bring a unified system of healthcare a sudden onset of cellulites and, let’s face it, Sounds simple but the truth is that coverage into effect through Europe nowhere in the world was more appropriate in a recent customer survey 41 per as opposed to the current at that given time. With a gin and tonic we cent of people were unhappy at the fragmented one. It will coordinate sent him off in a whirlwind of fuss, as a few lack of progress updates and 42 per the social security schemes of extras from the previous night’s frivolity cent of people were unhappy at the member states and makes it lingered in tuxedos to watch his departure. It time it takes to settle a claim. This is possible for the public – Europe seemed like the perfect ending to what was a significant figure and shows up the problems in wide – to access free treatment. Gala dinner was an extravagant affair with a widely agreed was one of the best ITICs to date – the industry. That concluded the business end of ITIC. The delicious five-course meal and orchestral musicians though maybe not for Vernon.

FAI sponsored table AIG sponsored table

www.itij.co.uk International Travel Insurance Journal 26 NEWSANALYSIS Insurance scandal grows…

New York Attorney General Eliot Spitzer’s investigation of bid- rigging, payoffs and price fixing by some of the world’s largest insurance companies and brokers has careened like a wrecking ball through the insurance industry, leaving none of its sectors untouched – forcing all to re- examine who gets paid, how much, and why. By Milan Korcok

The probe has become the insurance industry’s Enron, attracting the attention of the US Senate, which on 16 November began hearings into the mounting allegations that brokers have routinely engaged in steering unsuspecting clients to insurers with whom they had lucrative payoff agreements, and that such deals had become standard operating practice within the industry. Though the scandal has already wrung mea culpas out of several of the world’s largest brokers and

“…the investigation, according to Spitzer, has so far just scratched the surface.”

insurers, forced a handful of high-ranking heads to quickly to brokers and insurers involved not only in roll, and elicited promises of major compensation business and commercial lines but in health, life, and disclosure reform, the investigation, according to auto, home and disability coverage, medical Spitzer, has so far just scratched the surface. “There malpractice, executive risk, marine, and aviation have been criminal pleas entered, there will be (See Spitzer probe expanded to health, more criminal pleas entered very shortly,” Spitzer disability and benefits lines, p.7). told the Senate Governmental Affairs Subcommittee In the first sweep of charges against insurers, on Financial Management, the Budget, and Spitzer’s investigation named American International International Security. “Favouritism, secrecy and Group, the Hartford Financial Services Group, conflicts rule this market, and not open competition. Bermuda-based Ace Ltd, and Munich American Risk These are issues that Congress must begin to partners as participants in the rigging and steering inquire into,” he said. “There is, I suspect, a schemes that allowed those involved to collect Pandora’s box that should be opened.” He called special placement service agreement (PSA) fees or especially for Congress and the Securities and contingency payments that were ‘above and beyond Exchange Commission to investigate the implications normal sales commissions’. Within weeks, attorneys of insurers locating their operations in Bermuda and general in almost a dozen states revealed that they other foreign countries, and he urged a stronger role too were already or would be investigating similar for the federal government in monitoring offshore charges among firms big and small. capitalisation and investment by insurance companies By mid November, subpoenas for information into (See Fine sailing offshore, p. 7). suspect payoff practices had been issued to Aetna, Spitzer also said the Federal Trade Commission Ace Ltd., Allstate (Connecticut only), AIG, Anthem, should play a part in regulating insurance as there Chubb, Cigna, CNA, The Hartford, ING, Liberty are ‘too many gaps in regulation across the 50 Mutual, MetLife, Minnesota Life, Progressive states and many state regulators have not been (Connecticut only), St. Paul Travelers, Unum sufficiently aggressive in terms of supervising this Provident and XL Insurance. More were expected. industry’. But he affirmed that the federal In reaction, Marsh sacked its chairman and CEO government should not pre-empt state Jeffrey Greenberg (son of AIG chairman Maurice enforcement and regulation. Regulation of insurance Greenberg), announced that it would be cutting has been a state jurisdiction since 1945: it is the 3,000 jobs worldwide, that it had set aside $272 only financial services industry not federally million for potential settlements, and would regulated. immediately instigate significant reforms to its business model – the chief one being that from Laying the blame now on it would receive compensation for its Filed officially in mid October, the Spitzer services from only one party: it’s client. investigation focussed initially on accusations of price-rigging and payoffs by Marsh and McLennan, Taking the blame the world’s largest insurance broker, but spread In return for getting rid of Greenberg, whom

International Travel Insurance Journal www.itij.co.uk NEWSANALYSIS 27 … and grows

Spitzer characterised as an impediment to the he also said any proposed changes in federal with the client, but IIABA advocates ‘transparency investigations, Marsh was assured that the company regulations should not weaken the historic role of and meaningful disclosure’ of such arrangements by would not be faced with criminal charges (although states in regulating insurance. brokers, not their elimination. He said also that individuals within it might). Greenberg was replaced The contingent commission arrangements, PSAs, IIABA believes any broker disclosure requirement by Michael Cherkasky, a former New York State and the rigged or fictitious bids at the core of these should be made transaction-specific, should require prosecutor who immediately announced that Marsh investigations are responsible, says Spitzer, for brokers to disclose all incentive compensation had suspended all PSA and contingency contracts of customers – be they corporate or individual – arrangements (be they PSAs or contingent the type that had gotten it into trouble. paying far more than they need to for the products commission), and disclosure should be made in Spitzer told the Senate subcommittee that the PSA they are buying: this not a victimless crime. The writing prior to the actual purchase of insurance. and contingency contract business was such a high losers in such trades, said the New York Attorney In response to the insurance scandal, the National priority to Marsh that it had established a separate General, are the brokers’ clients, who might not be Association of Insurance Commissioners (NAIC) set business unit solely for the purpose of negotiating, collecting and extracting contingent commissions. In 2003, said Spitzer’s testimony, Marsh received $845 million in such payments, and because little or no service is performed for steering business to “…insurers in the US property/casualty market system accessible to the public. insurance carriers, this $845 million represents In releasing the draft legislation, Diane Koken, NAIC almost pure profit. paid out nearly $3.7 billion in PSAs and President, showed that state commissioners were not Elsewhere, The Hartford fired two senior prepared to back away from their turf and hand over employees for not cooperating completely with contingent commissions in 2003…” regulatory powers to federal authority. She said: “State Spitzer, two executives of AIG pleaded guilty to insurance regulators, working in many cases with the criminal charges of bid rigging with Marsh, two top state attorneys general, have been leading the effort executives of Zurich Financial Services pleaded guilty to identify problems in the area of broker activities. to criminal charges of bid rigging, and Bermuda- getting the best deal they otherwise might, and up a taskforce some weeks ago to draft model state We clearly have the resources and expertise to based ACE Ltd. also fired two employees for bid whose interests are being sacrificed for the financial legislation that might eventually govern handle this matter aggressively and effectively.” benefit of the broker. The end result of such compensation arrangements by insurance brokers. In reinforcing that message, Greg Serio, New York transactions, says Spitzer, is higher profits for the The draft, which will be discussed at NAIC’s winter State Superintendent of Insurance, told the Senate broker and the insurer, and higher fees for the national meeting in December, calls for more subcommittee: “We strongly believe an effective customer. transparency for insurance consumers through system of national regulation does not mean federal According to a release issued in November by A.M. better disclosure of broker compensation regulation.” Best, the insurance industry now finds virtually arrangements, more coordinated efforts to address Federal intervention, he said, would only confuse every aspect of its compensation and distribution improper conduct by brokers and insurers through the policyholder about who is in charge when it system – ranging from what is required in policy investigation and collection of information, and came time to deal with losses and claims declarations to the nature of agent of record letters implementation of a new online fraud reporting payments. – subject to radical change. “Most observers now agree,” says the rating agency, “the long-standing practice of incentive commissions paid by insurers to brokers is likely already a thing of the past.” And that, says Best, is big business. According to its own statistics, insurers in the US property/casualty market paid out nearly $3.7 billion in PSAs and THERE IS LIGHT ON THE HORIZON contingent commissions in 2003, including both those paid to brokers and those paid to agents and other intermediaries. Best notes also that the top three global brokers – Marsh, Aon Corp, and Willis Group Holdings Ltd., as well as Arthur J. Gallagher & Co., U.S.I Holdings Corp, and UK-based Jardine Lloyd Thompson Group plc, have announced they will do way with placement service and market service agreements. Most others are expected to follow.

Compensation and regulation The Independent Insurance Agents & Brokers of America (IIABA) – representing agents, brokers and their employees – has also weighed in on the investigation publicly abhorring the abuses targeted rigging an agreement with Marsh and promised by Spitzer, but cautioned against a blanket Spitzer it would adopt practices and procedures that elimination of incentive compensation for all would ‘avoid real or any appearance of conflicts of insurance producers. It contends that the New York interest’. investigations should not be used as a ‘justification In the meantime, Connecticut Attorney General or rationale for eliminating incentive compensation Richard Blumenthal was probing bid-rigging and to all insurance producers’. > worldwide AIR AMBULANCE OPERATOR steering charges among at least 20 insurers in his Alex Soto, a Miami-based independent agent and > worldwide REPATRIATION & MEDEVAC state – headquarters for the US insurance industry, national officer of IIABA, said it was necessary to and John Garamendi, superintendent of insurance in distinguish between PSAs, which compensate > worldwide AIRLINE STRETCHER SERVICE California, was launching legal actions against brokers upfront for the placement of business based > worldwide MEDICAL AIRLINE ESCORTS numerous brokers and insurance companies that on volume, and contingent commissions, which are sold employee benefit and disability plans under contingent on a number of factors and paid on the > worldwide BED-2-BED TRANSPORTS suspect compensation circumstances. Eventually, back end. Contingent commissions are a legal, > PERSONAL MEDICAL CONSULTANCY federal agencies will become involved in these cases legitimate form of compensation to reward too, he said. excellent sales performance, and “sales incentive programmes are a legal and legitimate tool used in Paying the price nearly every industry,” he said. “From refrigerators 24 / 7 available for those in need! Blumenthal told the Senate subcommittee that to cars, and home to business equipment, taxpayers may well have paid too much for compensation that rewards a sales force for Tel: +43 699 1570 1570 property, casualty, health and workers’ excellence is sound business practice.” compensation as a result of the brokers’ and Soto acknowledged that incentive compensation based in: VIENNA (LOWW/VIE), AUSTRIA insurers misdeeds. And he insisted that state can create the appearance of conflict of interest insurance laws be ‘reinvigorated and reinvented’ to because the broker is also paid a fee by the client www. medicaljetservice.com combat the fraud that is now being investigated. But and because of the broker’s unique relationship

www.itij.co.uk International Travel Insurance Journal 28 FEATURE Have urge, will travel

In the second part of our exposé Part two on the sex tourism scourge, Roger St Pierre looks at the affect on insurers

Sea, sun, sand and sex – the classic ingredients for a over there! carefree holiday or, at least, that was the traditional safety-last view of what an annual vacation should Criminal be about. As one commentator put it: “A holiday element without sex is like a roast dinner without gravy!” In its wake, the sex And amazingly, despite soaring sexually transmitted industry, however disease rates and very real prospects of AIDS well policed, attracts epidemics spreading from the third world to a criminal element western countries, far too many travellers still cast and there, for travel caution to the winds and indulge in unprotected insurance companies, sex with perfect strangers and will like as not never is where the meet again. problems really Of course, sometimes it is mutual attraction but begin. often it’s the result of either too much drink and a Those indulging in lot of meaningless chat-up lines or of a monetary illicit paid-for sex not transaction. only open themselves The sex trade – popularly held to be the oldest to health problems industry in the world – is a global phenomena and but become rip-off an especially worrying problem for the emergent victims too. Wallets countries of the third world, which have now and credit cards become among the most popular overseas disappear from the destinations and are filling up with too many pockets of that pair tourists who are overpaid, over-sexed and, well, of trousers draped

over the hotel room’s bed; blackmail, that claims to be ‘Europe’s largest gay tour extortion and physical beatings can follow a visit to operator’ announces ‘The sexiest brochure ever’ the local red light district. with pink holiday packages to Sitges, Ibiza, One prominent UK travel writer who chooses to Mkykonos, Gran Canaria and Tenerife. remain anonymous related to me the story of an Whether it’s the pink pound or the green dollar innocent stroll through the backstreets of Istanbul. they are after, other operators, from the mighty “I didn’t realise I had stumbled into the red light Club 18/30 down, have long recognised that the district and went into a bar innocently looking to promise of romance – or simple, unfettered sex – is have a quiet drink,” he recalls. a key sales incentive. “A pretty young lady came and sat opposite me and It’s a marketing ploy that dates back at least as far we started chatting. I offered her a drink and as the heyday of the James Bond movies, surely the stayed half an hour or so. But when I got up to pay most invitingly sexy travel brochures of their day: the bar tab I was landed instead with a £100 bill ‘See sunny Rio (or Jamaica, Tokyo, South East Asia for ‘The young lady’s services’. or Biarritz), outwit evil geniuses, kill their “Of course I refused to pay but when the police henchmen, seduce their women! You’ll never meet were called it was me that ended up being locked a girl like Pussy Galore back home’ as one Internet up over night, accused of attempted theft!” wit put it. In similar circumstances, how many policyholders Going back even further, the promise of sex was would fess up the full story rather than just claim one of the lures that led wealthy young men to they had lost their wallet in a bar? embark on the European Grand Tour of the 17th, Loss adjusters working on one bogus claim for a 18th and 19th centuries. Before he set off on that UK insurer discovered that the £500 being claimed trail, one of young James Boswell’s diary entries for lost luggage was actually to cover the cost of a read: “Maintain character. If you whore, all ideas call girl’s visit. Just how many times do insurance change.” By the end of the trip he was writing: “Be companies end up unknowingly footing the bill for self. Be original. Be happy… marry not but think other people’s indiscretions? to have fine Saxon girls.” Sex marketing Working girls The increasing impact on the Internet of A study by the Department of Social Welfare and pornography – which is said to account for more Development in the Philippines conservatively than 60 per cent of all website traffic – has been estimated that there are currently more than half-a- accompanied by a massive boom in sex tourism, million prostitutes operating in that one country with even some normally straight-laced tour alone, not including the more than 60,000 operators introducing packages to get people where children now involved in the sex industry there. they want to be, at a price they can afford, to do Where once prostitutes plied their trade in dark you know what. alleys or in massage parlours, today restaurants, A press release from Respect Holidays, a company food stalls and even tailoring shops serve as a front

“The sex trade – popularly held to be the oldest industry in the world – is a global phenomena and an especially worrying problem for the emergent countries of the third world…” International Travel Insurance Journal www.itij.co.uk FEATURE 29

for the sex trade. Known as ‘akyart barko’, or closed down but the increasing liberalisation of the million people indigent and more than 40 million ‘climbing the ship’, a recent development involves business environment has led to a loosening of children and adolescents needy or abandoned, a women being rowed out to ships berthed offshore controls and an influx of foreign male tourists, situation which sees many drift into prostitution – to service sailors who have not been given shore especially from Japan, the UK and Australia, with lured by the seemingly easy money proffered by the leave. their minds set on just one thing. tourists who now flock to the country’s famed Worse has been the evolution of the ‘casa’, a The Philippines government even produces a beach resorts. brothel where women are kept as virtual prisoners, manual to encourage Filipino women to move to Fortunately, while third-world governments might

“Fortunately, while third-world governments might see the sex trade as simply another way to improve their balance of payments deficit, at least the global travel industry is taking a more principled stance, especially when it comes to the sexual exploitation of children.” being guarded day and night – even when they go Japan to work as ‘Overseas Performing Artists’ – to the social hygiene clinics for their regular smear one of the more ingenious euphemisms for see the sex trade as simply another way to improve tests. prostitution. One section reads: “You don’t have to their balance of payments deficit, at least the global The Filipino government even turns a blind eye to spend a lot of money and invest four years in a travel industry is taking a more principled stance, various types of prostitution where girls college education. If you are the right height, have especially when it comes to the sexual exploitation masquerade under such euphemistic titles as ‘guest the right legs and a sense of rhythm, you can serve of children. relations officer’, ‘hostess’ and ‘hospitality worker’. yourself, your family and your country by There were hopes that the sex trade would decrease becoming an entertainer in Japan.” Worldwide exploitation once the American bases on these Pacific islands In Brazil, the disparate spread of wealth leaves 20 As far back as 1995, the member nation organisations of the World Tourism Organization took a firm stand by issuing at its Cairo conference a key statement on the prevention of sex tourism. Established in March 1997 at the International Tourism Fair in Berlin (IBTM), the Task Force to Protect Children from Sexual Exploitation in Tourism two months later launched the ‘NO Child Sex in Tourism’ campaign, seeking to build awareness of the problem among government agencies, companies and organisations in the tourism sector and the travelling public and to encourage governments to take administrative and legislative action to tackle the problem. The sexual exploitation problem is not limited to poor countries. In the UK, 100 women were trafficked into London from South America over a five-year period and held in debt bondage while 10 women from Malaysia, Hong Kong and Thailand were found in London brothels run by Triad gangs. These women worked 12 to 14 hour shifts, seven days a week, and were paid just a small percentage of their earnings, continued on p.34

www.itij.co.uk International Travel Insurance Journal 30 WORLDMARKETS Czech this out!

Marketing and promotion will be the key to business boost that many in the travel insurance themselves. increasing travel insurance take-up in East industry were anticipating. True, people in the 10 “There is this mistaken belief among people that Europe’s otherwise strongest insurance market. new member states, especially those from the now we are in the EU we are all protected by a vast Roger St Pierre reports on events in the Czech former Eastern Bloc, are travelling more often and state-run umbrella, so there’s no longer a need to Republic further afield than in the past – but too many of insure,” said Lukas Jelinek, who runs the Prague- them are adopting a cavalier attitude to taking out based Central European office of the Dutch EU accession has not exactly proved to be the even the most minimal of cover to protect headquartered Eurocross International, a leading operator in the business of international assistance for travellers, with clients in some 30 countries. “In former times, there was no such thing as travel insurance. The concept only came into play here in the Czech Republic after 1989’s bloodless revolution brought us into the free world orbit,” added Lukas. “Until now, growth has been slow but steady, but we still need to get the travel insurance concept and its benefits across to the mass travelling public. There is a lot of promotion that needs to be done and this matter is now being seriously addressed. “Naturally, things are somewhat better among business travellers, who are far more sophisticated and have an understanding of the very real need to rather than Eastern Europe. protect themselves and their property when Covering 78,864 square kilometres, this attractive travelling abroad.” country boasts not just Prague – arguably the world’s most beautiful city – but some 11 historical

“…the [new] harmonizing legislation…define[s] in a newer, better, and more accurate manner the rights, obligations and relationships among entities active in the insurance market and those that regulate or supervise it…”

At the heart of Europe With a population of some 10,300,000, the Czech Republic stands at the very heart of Europe – sandwiched between Germany, Poland, Austria and its former partner Tel: +254-20-600090/ 600552/ 315454/ 315455/ 602492 country of Slovakia. Fax: +254-20-344170 Mobile: +254-733-639-088, +254-722-314-239 Prague is actually Sat Phone: +873-762-315-580 Sat Fax: +873-762-315-581 considerably nearer to Radio Frequencies: HF 9116 kHz LSB, 5796 kHz LSB London than is Vienna, email: [email protected] which means the Czech Republic is in Central,

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

monuments on the UNESCO World Heritage Site worthwhile market sector, with companies like per cent of the nation’s households list, more than 2,000 castles, palaces, stately homes Allianz and AON Ceska doing good levels of took out travel insurance cover and monuments, 30 spa towns and resorts, more business, while the specialist European Travel during the previous year. Czech than 40 protected historical towns, eight mountain Insurance Company is also doing well. policies follow the European international norm, covering such fundamentals as medical treatment, public liability, travel delay, baggage “EU accession has not exactly proved to be the delay or loss and the other norms. Sales are completed direct with business boost that many in the travel insurance insurance companies, through brokers, through banks and as credit industry were anticipating.” card add-ons, but the norm is for travel insurance to be offered by tour operators or travel agents as part of a holiday package. ranges, four national parks Annual policies are becoming and an impressive total of 24 increasingly popular, especially among insurance intermediaries. protected areas. business travellers. “2003 was a very successful year in terms of All this is enough to attract The Czech Republic’s EU accession is linked insurance market development. Total premiums more than US$3 billion of with a number of fundamental changes in written in the Czech Republic increased by 16.5 receipts from incoming the lives of people and the tourists each year and might conduct of the nation’s well be seen as reason enough institutions, including the why Czechs tend to spend insurance industry. their holidays at home, even Respondents to the CAP though foreign travel is more research anticipate particularly accessible and affordable than positive changes when it ever before. Indeed, in comes to serving their needs. tourism terms, the Republic An increasing diversification of has a US$1.3 billion balance insurance policy offers and the of payments in its favour. benefits from increased Back in 1989, Czech citizens competition were cited as made just 7.8 million journeys highly positive factors for the abroad. By 1996, the figure future. had peaked at 48.6 million, As CAP president Ladislav but six years later it had slid Bartonicek put it in his section back to 34.3 million. That of the organisation’s annual figure is likely to have report: “2003 was the last year before the per cent to CZK 105.9 billion, exceeding the CZK stabilised when the 2004 Czech Republic’s accession to the EU and 100 billion marker for the first time.” figures are announced. called for a wrapping up of the process of The Czech nation’s overall economy was doing well With Germany by far the harmonising Czech insurance law and too. Following a modest slowdown in 2002, gross most popular destination, practices with those of the community. It domestic profit grew by 3.1 per cent in 2003, 91.8 per cent of Czech citizens meant focusing on providing travel out of the country by comments to drafts of new car, with 3.3 per cent going by legislation and working to put rail and 4.9 per cent by air – through the revisions necessary though this is in the process of to increase the quality of the re-adjustment due to the bills based on proper and arrival on the scene of low- reasonable implementation of cost air carriers providing links the directives in question, to a number of major while respecting the character European centres. of the Czech insurance market Currently, the Czech Republic and its degree of development. has a total of 42 registered “The association fully insurance companies – a supported the passage of the harmonising legislation. We are fully aware that these acts define in a newer, better, and more “Increasingly, [Czech insurers] are seeing travel accurate manner the rights, insurance as a worthwhile market sector…” obligations and relationships among entities active producing the best result for three years. in the insurance market and those that regulate or The average real wage grew by 6.7 per cent and yet supervise it – and that means consumers, insurance prices remained essentially flat, with an inflation number of them subsidiaries of multinational companies and the State. rate of just 0.1 per cent. While the Czech Koruna operations – employing a total of 15,283 staff. All Holiday packages “The new legislation incorporates the principles of currency lost slightly against the euro it but three of these organisations, which are life According to an April/May 2004 market research operation of the single market among the EU strengthened considerably against the US dollar. assurance specialists, underwrite general insurance. study compiled by Stem/Marc, on behalf of the member states and opens up a level playing field in The registered unemployment rate remained rather Increasingly, they are seeing travel insurance as a Czech Insurance Association (CAP), some seven that market for all insurance companies as well as high, however, at 10 per cent.

We are very keen readers of the ITTN. The publication provides us with just the right sort of information to access the full potential of the travel market, and is now a key “ information resource for us when making strategic decisions. Keep it coming! Phil Little, Sales & Marketing Director, Travel Connections, London ” CONTAINS REGULAR INSURANCE FEATURES With a reception like this from over 50,000 key decision makers worldwide can you really afford NOT to be advertising with us? (call: +44 (0)117 925 5151 for a media kit)

www.itij.co.uk International Travel Insurance Journal 32 HOTSPOTS Letters Send your letters to: The Editor, ITIJ, Voyageur Buildings, 43 Colston Street, Bristol, BS1 5AX, UK Egypt: Anatomy of the Sinai attacks (fax +44 (0)117 929 2023 or e-mail [email protected]) We reserve the right to edit your letters and to cut them if neccessary. While the 7 October bombing of three resorts in organizations had surfaced. This was echoed 1 Egypt’s northeastern Sinai came as a surprise to November by Egypt’s interior minister, who said that most of the world, Israel’s Ministry of Foreign an investigation had proven that the group was not Dear Sir/ Madam have been through this, as they don't Affairs (MFA) had issued an advisory a month related to a large group inside or outside Egypt, nor I assume I am writing to the correct want it to affect their lives anymore. earlier warning its citizens not to travel to the was it part of any Al-Qaeda cell. authorities to answer the questions I have. Sinai during the September-October Jewish high Egyptian authorities continue to search for two I have just got off the phone to Tesco Yours Sincerely holiday season, citing concrete evidence that Bedouins – Muhammad Ahmed Saleh Fileefil and Travel Insurance, which I thought would Stuart, Portsmouth terrorist groups were planning attacks against Hammad Guma’ah Gumiya’an Turabeen. Security be a simple call to arrange cover for our Israeli or Jewish targets in the peninsula. officials believe they are hiding in the rugged holiday. Only to find one of the questions Nevertheless, thousands mountains of the Sinai. asked was relating to cancer, through Dear Stuart, of Israelis flocked to Red Tactics: which my partner has had surgery and Thanks for your e-mail. Sea resorts in The perpetrators rigged has been given the all clear. But it seems Unfortunately, we are not the official northeastern Sinai for the three car bombs using insurers don’t like people being happy body to whom to make a complaint. You Rosh Hashanah, Yom stolen Egyptian vehicles. A with the all clear or don't understand it as should address this to either the Kippur and Sukkot truck packed with I am told the policy is 500 per cent more Association of British Insurers (ABI), holidays (see ITIJ 46, approximately 1,100 due to the cancer history. [email protected], or the Insurance Israelis targeted in pounds of TNT exploded I would understand if her treatment was Ombudsman, www.financial- Egypt). iJET Travel Risk at the entrance of the Taba still ongoing or she had been diagnosed ombudsman.org.uk. Management looks back Hilton. In the Raes Al- terminally ill, but the words all clear We fully empathise with your situation, at the risk Shaitan campground mean the cancer is no longer active in but sadly, you may find that although bombings, terrorists packed her body (being checked on at intervals), ethically incorrect, and possibly The operation: a station wagon and a so you, I and anybody has the same medically ludicrous, Tesco or their Between 22:00 and 22:15 on 7 October, three car pickup with salvaged RDX explosives. The bombs were chance, or more, of the cancer becoming underwriters are entitled to make such bombs detonated at separate locations in the Sinai. crudely constructed, having been rigged with timers active in our bodies, if it is not already, judgments or loading on policies as they The targets, selected for their high concentration of from washing machines. The improvised nature of the because we have not been checked! see fit. Israelis, were the Hilton Hotel in Taba and the Moon devices suggests that the group was likely not well It is like saying because I broke my arm However, there is more than one insurer Island and Al-Badiya campgrounds in Raes Al- funded or part of an organization with an international I am likely to break it again, so why not out there and they all have totally Shaitan. Thirty-five people were killed and 159 support network. ask that? I am very upset by this, as you different criteria for issuing a policy. injured. Responsibility: can probably tell, as it would be our first Why don’t you try a range of others? Perpetrators: Shortly after the blasts, at least three previously holiday abroad and we were both looking Let us know how you get on. Investigators believe that a team of nine terrorists unknown groups claimed responsibility. None of forward to it, but all clear obviously Thanks again for your letter; we think it carried out the attacks. On 25 October, authorities the claims are thought to be genuine. means it should hit us in the pocket for will help to highlight some of the silly arrested five suspects. Of the remaining suspects, A direct link between the attacks and any of the known the rest of our lives. Not to mention we idiosyncrasies that are present in some two were killed in the Taba explosion and two Palestinian groups is unlikely. Given the increasingly are only going for a week and cancer will policies. remain at large. important role Egypt is playing in Middle East affairs, not work that quickly, so there would A question to our readers – who out Authorities believe that all members of the group especially in organizing Palestinian security forces, it is in never be the need to use any medical there in the travel insurance business were Egyptians, except the purported leader, Ayad these groups’ interests to maintain good relations with services out there for this case. will be brave enough to comment on this Saed Saleh, a Palestinian from El-Arish. Saleh and Mubarak’s government. Please let me know why they quoted 500 subject? Egyptian Bedouin Sulayman Ahmed Saleh Fileefil Motive: per cent more for no reason, as all clear died in the Taba explosion when a faulty timer Given that Israelis were the primary target of the attacks, means all clear, not a reason for Best regards, detonated the bomb prematurely. President Hosni the most likely motive was the Israeli-Palestinian conflict. insurance to profit from these cases. Ian Cameron Mubarak said on 27 October that no links The bombings took place during a large-scale Israeli They should think about the people who Editor-in-Chief, Voyageur Publishing connecting Saleh and any known Palestinian political military offensive in the Gaza Strip. The incursion, dubbed Days of Penitence, was the deadliest operation since the beginning of the Al-Aqsa Intifada four years ago. Over the past two years, there have been at least six attacks on Israeli and Jewish targets outside Israel. Conclusions: As a result of the bombings, the Egyptian government has called for a review of provisions of the 1979 Camp David peace treaty that limit the number and types of troops Egypt can station in the demilitarized zone (in the eastern Sinai). Assuming this was an isolated event, Egyptian tourism should remain steady. The impact to tourism in the immediate area of the attacks, considering that the resorts catered primarily to Israelis, will be more dramatic. Nationwide, tourism has dropped by only five per cent as a result of the bombings. The Egyptian government must do all it can to reassure tourists, investors and others that it can provide adequate security to prevent a similar attack. With a US$8.4 billion budget deficit, Egypt can ill afford a major decrease in tourism revenues. The broader challenge: If one group can successfully plan and execute such a devastating attack, other groups could do the same, and may be encouraged by the success of the 7 October operation. In one sense, this poses a greater challenge for long-term security, for Egypt and other Arab governments. Most of these governments have marginalised larger Islamic militant groups through harsh crackdowns on their leadership and financing. But ‘independent operators’, such as the Taba gang, pose a greater challenge for security forces.

International Travel Insurance Journal www.itij.co.uk

34 DICK’SHOTLINE

Have urge, will travel continued from p.29 MEXICO REVISITED of human misery, degradation and ill-health. Back in 1997, health checks in Bombay found that one per cent of prostitutes in that city were infected Mexico can be an exotic vacation paradise, but even law- with HIV. Within five years that had rocketed to 54 per cent of the sample group tested. abiding visitors there can wind up in jail and face a variety Today, India is logging more than 1,000 new AIDS of serious legal, health and safety problems. Activities that cases each month and has an estimated 4.6 million would constitute a civil problem elsewhere can readily turn HIV infections. into a significant criminal problem in Mexico. For example, a For many years, tourists have flocked to Amsterdam and Hamburg’s notorious Reeperbahn foreigner entering into a civil contract with a Mexican district to see prostitutes display their wares in business entity is in danger of being arrested if the Mexican shop windows. Bangkok has been another sex business partner is not satisfied with the work or product. tourism mecca. But now there’s a fight back, with child abuse the prime target. Pass through the airports in Pnom Penh and Bangkok and you will be greeted by posters of a man behind a barred Mexico can be an exotic of our Baja lawyer, our prison door bearing the message: ‘sex tourist’, while vacation paradise, but negotiations finally another billboard proclaims: ‘Abuse a child in this even law-abiding visitors resulted in the son’s country, go to jail in yours’. there can wind up in jail release on bail. The fact The US government is waging a war against and face a variety of that the son’s car had American child-sex tourists and US travel agencies serious legal, health and been struck in the rear that promote sex holidays. The two owners of Big safety problems. Activities by a speeding Mexican Apple Oriental Tours were charged in the first that would constitute a driver seemed irrelevant indictment of a US sex tourism company for civil problem elsewhere to the local police. While violating a state law that prohibits the promotion can readily turn into a this may be close to a from which was deducted their air fares, rent and of tourism. They now face a possible seven years in significant criminal worst-case scenario, meals, while their identity documents were jail. The New York company’s brochures had problem in Mexico. For obtaining bail for a driver withheld to stop them running away. promised ‘Plenty of young women to keep you example, a foreigner in any serious auto Additionally to what goes on in their home county, occupied for the whole trip’ with their US$2,495 entering into a civil contract with a Mexican accident in Mexico is a difficult task. If the visitors Britons are among the most notorious sex tourism package to the Philippines. business entity is in danger of being arrested if the had read the applicable warnings in their AAA guide offenders, with some 25 known British Mexican business partner is not satisfied with the to Mexico prior to the trip, they most likely would paedophiles, including the disgraced pop star Gary work or product. have purchased both travel insurance as well as the Glitter, currently known to be living in Thailand. One case in which we were involved concerned a comprehensive Mexican auto insurance which is British authorities have listed around 6,000 known US business owner who contracted to print ballots readily available near most Mexico-US border paedophile sex tourists. India, Sri Lanka, Thailand, for a local Mexican election. The Mexican partner crossings. They also may have comprehended the the Philippines, Brazil, Mexico, Argentina and found fault with the printing and rejected the danger of driving in that part of Mexico, since the some Arab countries are ranked among their subsequent offer of compromise, then lured the US problems are well documented in the guide. favourite destinations. businessman to Mexico City and had him arrested. The value of prompt access to an honest and Bail is extremely rare in such cases. The competent lawyer in Mexico and in other Costing you dear businessman could have paid the outrageous sum developing countries cannot be overstated. While There is a heavy price to pay for all this, in terms demanded to settle the case, but did not, and preparing this column, a caller informed us that his consequently remained in prison for more than 18 friend, a driver who had been on an errand for his months, during which time he suffered two heart California employer, picked up a package of attacks. At the request of his wife, I traveled to El prescription drugs at a Tijuana pharmacy, and soon Norte prison in an attempt to try to negotiate a thereafter was arrested as he approached the US compromise, but the client stubbornly continued to border. In jail, he followed a fellow prisoner’s deny any liability and consequently remained recommendation to retain the local attorney who incarcerated with deteriorating health. The case promised a quick ‘not guilty’ and a prompt release. finally resulted in a legal victory; however, shortly A year and a half later, after being convicted and after being released, the client suffered a third heart receiving a five-year prison sentence, he applied to attack and died. transfer to the US pursuant to the Mexican-US We have received numerous calls on behalf of Prisoner Transfer Treaty. At that time, he was tourists in Mexico City who were robbed by taxi informed that this lawyer, without permission or drivers, an all too common occurrence in the authority, had entered an appeal in the case, which capital. The dangerous taxi situation will be effectively stopped the transfer. The lawyer then addressed more fully in a separate Hotline column. brazenly demanded $10,000 to drop the appeal We have also received calls on behalf of individuals and allow him to transfer – an amount the family arrested as a result of being involved in an auto could not obtain. accident in Mexico. Mexico follows Latin American Further information revealed that the ‘lawyer’ paid a traditions of arresting all drivers in any collision in percentage of his collected fee to any prisoner who which someone is seriously injured, and then recommended his legal services to other prisoners. keeping them in jail until the police determine who This individual had been disbarred, but still worked is at fault. Investigations can take months to in conjunction with a licensed attorney. complete. Sometimes, even passengers are taken During another call, an anxious grandmother, who into custody as material witnesses. had seen our telephone number in the AAA guide, Another Mexican case involved a two-vehicle explained to us that her 10-year-old granddaughter, accident in Baja. Initially, we had to negotiate with traveling with her parents, ate lunch at a restaurant the police to secure the release of the remains of near Guadalajara, Mexico, and then stepped an individual who died in the crash, whose body outside to look at the exhibit of caged lions, the was being held hostage at the local morgue. The restaurant’s special attraction. Unfortunately, as she police initially demanded $1,000, but finally approached the cage, one of the lions bit her arm. accepted $250. Another seriously injured passenger We quickly arranged for our regional Mexican was taken to the public hospital strapped to a door network lawyer to become involved. Local instead of a stretcher. Next, the police demanded a authorities had previously cited the restaurant for $500 payment to release the passenger’s luggage, having an illegal dangerous exhibit. As in too many but finally accepted $100. By the time the instances in Mexico, liability insurance was non- passenger finally received his luggage everything existent and our local lawyer would have to was missing except for his worn underclothes and convince the police to arrest the establishment’s socks. The damaged vehicle itself, which belonged owner before starting a lawsuit. Such procedures to the caller’s son, was stripped of its parts and left are long and cumbersome. The frustrated family valueless. members decided not to proceed with the legal Obtaining the release of the son, who was one of action. the injured drivers, was a frustrating experience. Mexico offers luxurious resorts, exotic sights and The son remained handcuffed to his hospital bed, experiences, ancient cultural treasures and warm guarded 24 hours a day by two police officers, with hospitality. The vast majority of travellers there have the cost of this extra security service charged to the a safe and pleasant experience. But it is best for family. We were informed that, when released, he visitors to be aware of possible problems and to be would be taken to the local jail. With the assistance properly prepared to deal with them.

International Travel Insurance Journal www.itij.co.uk

36 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

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 Jacobo Bercovici USA Vice-President

Aeromed 365 Ltd Worth Corner Business Cntr Tel: +44 8707 596 999 [email protected] Alida Benton Turnershill Road Fax: +44 8707 559 599 www.aeromed365.com Managing Director Pound Hill, Crawley W Sussex RH10 7SL UK

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 Partner Plc Platinum House Tel: +44 1283 844 888 [email protected] Amanda Johnson 24/7 Medevac Services Gatwick Road Tel: +44 1283 844 859 www.airpartner.com Team Leader Crawley West Sussex RH10 9RP UK

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 20 600 090 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Adriano Gouveia Medical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager 9000-056 Funchal Medical(24hr): +351 965 013 938 Dr E Açafrão Madeira Ops.(24hr): +351 963 443 339 Medical Director PORTUGAL

Canadian Global Air Ambulance TORONTO Tel: +1 204 888 5555 [email protected] Joy Schmit WINNIPEG Fax: +1 204 888 9111 www.canadianglobalair.ca Three Suns Media VANCOUVER Toll Free: +1 800 563 3822

DRF German Air Rescue Raiffeisenstr 32 Tel (24hr): +49 711701070 [email protected] Frank Spirgatis 70794 Filderstadt Fax: +49 711701071 [email protected] Director of Sales & Marketing GERMANY www.german-air-rescue.de Rainer Horcher Head of Alert Center

Egres Aeromedical Postnet Suite 82 Tel: +27 11 701 2172 [email protected] S.D. Avice Du Buisson Evacuation Services Private Bag X4 Fax: +27 11 701 2173 www.egres.co.za Managing Director Lanseria 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 [email protected] Operations Manager GERMANY Mob: +49 174 344 5358 www.flightambulance.net Volker Lemke Director of Sales & Marketing

Global Air Response 7355 S Peoria Street Tel: +1 800 631 6565 [email protected] Tom Cox A3/ Suite 209 Intl. Tel: +1 303 858 9967 www.airresponse.net Director of Business Development Englewood Fax: +1 888 631 6565 CO 80112 Intl. Fax: +1 303 858 9968 USA

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

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 May Furuli Telefax: +47 22 96 50 31 Operations Manager

JetWest 16644 Roscoe Blvd Tel: +1 818 787 9100 [email protected] Shawn Crocker Van Nuys Fax: +1 818 787 4473 www.jetwest.com California 91406 USA

Luxembourg Air Ambulance 175A, rue de Cessange Tel(24hr): +352 420 440 1 [email protected] Andy Breeden L-1321 Tel: +352 420 440 361 www.air-ambulance.lu Operations LUXEMBOURG Fax: +352 420 440 366 Louis Wright Sales & Marketing Manager

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 Jet Services & Partner Radetzkystr 19 Tel: +43 1 713 2799 [email protected] W Dichtl Vienna Fax: +43 1 713 2799-19 www.medicaljetservice.com 1030 24hr Tel: +43 699 1570 1570 AUSTRIA 24hr Fax: +43 699 4570 1570

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

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Shane Marais 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand 1685 SOUTH AFRICA

North Flying A/S Aalborg Airport Tel: +45 96 32 29 00 [email protected] Jef Sorenson Norresundby Fax: +45 96 32 29 09 www.northflying.com Sales Director DK-9400 DENMARK

Pacific Flight Services Pte. Ltd ST Aerospace Engineering Bldg. Tel: +65 6481 3756 [email protected] Katherine Yeo A subsidiary of Singapore Seletar West Camp Fax: +65 6482 1727 www.fly-pfs.com Technologies Aerospace Ltd Seletar Airport SINGAPORE 797796

Skyservice Lifeguard 9785 Avenue Ryan Tel: +1 514 497 7000 [email protected] David Ewing Air Ambulance Montreal Fax: +1 514 636 0096 www.skyservice.com Vice President Quebec International Business Development H9P 1A2 CANADA

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

Swiss Air Ambulance/REGA PO Box 1414 Tel: +41 333 333 333 [email protected] Walter Stunzi Zurich - Airport Fax: +41 44 654 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

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

AIR AMBULANCE INTERIOR

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

ASSISTANCE COMPANIES

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera Langata Road Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

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

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

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

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.cu Managing Director Habana Vieja Nestor Silva Pérez Ciudad Habana Assistance Manager CUBA

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

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Adriano Gouveia Medical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager 9000-056 Funchal Medical(24hr): +351 965 013 938 Dr E Açafrão Madeira Ops.(24hr): +351 963 443 339 Medical Director PORTUGAL

Connex Assistance Egypt Ofiice 11 Tel(24hr): +2 02 336 0005 [email protected] Lara Helmi 1st Floor Fax(24hr): +2 02 762 0003 www.connexassistance.com International Network Director 6 Sad El Aali Street Dokki, Cairo EGYPT

Customer Care Pty Ltd Level 3 Tel: +612 9202 8222 [email protected] Janine Benson 60 Miller Street Fax: +612 9202 8220 www.customercare.com.au Operations Manager North Sydney 2060 Dr Howard Roby NSW Medical Director AUSTRALIA

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

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 [email protected] Maria Berkova RUSSIA Cyprus Fax: +357 24 62 5065 www.gva.ru Business Development Manager

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

Goral Assistance Corex House Tel: +97 299 579 930 [email protected] Natalie Gankin PO Box 12815 Fax: +97 299 579 931 www.goralassist.com Network Manager Hertzlya Industrial Park 46733 ISRAEL

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

Medex Assistance Corporation 8501 LaSalle Road Tel: +1 410 453 6300 [email protected] John Hmelnicky Suite 200 Fax: +1 410 453 6301 [email protected] SVP Sales & Marketing Baltimore [email protected] Rob Moore MD 21286 www.medexassist.com Director of Business Development - UK USA

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

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

SER Assistance Ltd 50/2206 Dizengoff Street Tel: +972 544 370 002 [email protected] Dr S Zareceansky Dizengoff Tower Fax: +972 3629 1991 General Manager & Director 64332 Tel-Aviv ISRAEL

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

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

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

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 6073 [email protected] Alberto Chapur C1054AA1 Fax: +(54 11) 4323 6004 [email protected] CEO Buenos Aires www.universal-assistance.com Michel Ortiz ARGENTINA Commercial Manager

World Travel Protection 400 University Avenue Tel: +1 416 977 3565 [email protected] Dr Ron Mayer Canada Inc. 15th Floor 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 CLAIMS MANAGEMENT

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

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

CRITIAL CARE PATIENT TRANSPORTATION

Lufthansa German Airlines FRA SQ/B Tel: +49 172 367 7929 [email protected] Doris Ehring (Patient transport compartment) Frankfurt Airport Fax: +49 69 690 58147 Key Account, Product & D-60546 Process Management GERMANY

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

Global Networks Funeral Assistance 22 Falcon Crescent Tel: +44 208 350 0645 [email protected] Cristina Almudi Enfield Fax: +44 208 482 0742 www.globalnetworksfa.com Managing Director EN3 4LT 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 Funeral & Transportation Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos 10444 Athens Fax: +30 210 5131660 General Manager 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

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

Servilusa SCI Portugal Tel: +35 121 354 8258 [email protected] Paulo Carreira Agencias Funerarias SA Toll Free: +35 800 204 222 Marketing Director Rua do Entreposto Industrial 8-2º Esq, 2610-135 Amadora PORTUGAL HEALTHCARE CLINICS

Number One Health Group 1 Harley Street Tel: +44 207 307 8756 [email protected] Dr Charlie Easmon (Incorporating Travel Screening London W1G 9QD Fax: +44 7092 196 169 www.executivescreen.com Director Services and Exectutive Search) UK

HOSPITALS

Hospital 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

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

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

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 Medical Management 7901 SW 36th Street Tel: +1 954 370 6404 [email protected] Raija Itzchaki Suite 100 www.gmmusa.com Assistant VP Marketing Davie FL 33328 USA

Hygeia Corporation 15500 New Barn Road Tel: +1 305 594 9291 [email protected] Joe Radigan Suite 200 Fax: +1 305 594 9201 www.hygeia.net Chief Operating Officer Miami Lakes FL 33014 USA

Intercontinental Corporation 5975 Castle Creek Parkway Tel: +1 317 806 2000 [email protected] Karla Kreger Suite 100 Fax: +1 317 806 2033 www.us-icc.com Manager, New Business Integration Indianapolis IN 46250 USA

Medsave USA 1400 Old Country Road Tel: +1 516 622 1700 [email protected] Donald Moyle Suite 109 Fax: +1 516 622 1733 www.medsaveusa.com Chief Marketing Officer Westbury NY 11590 USA

OneWorld Assist Inc 10th Floor Tel: +1 604 278 4108 [email protected] Calvin Ball 6081 No. 3 Road Toll free (NA): +1 800 663 0399 www.oneworldassist.com Business Development Manager Richmond, B.C Fax: +1 604 303 2142 V6Y 2B2 CANADA

Star Healthcare Network, Inc. 850 Seventh Avenue Tel: +1 212 581 8228 [email protected] Gigi Galen Suite #803 Fax: +1 212 581 8272 www.starhealthcare.com 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 MEDICAL ESCORT ON COMMERCIAL AIRLINES

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

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

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

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

MEDICAL PROVIDERS AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Adriano Gouveia Medical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager 9000-056 Funchal Medical (24hr): +351 965 013 938 Dr E Açafrão Madeira Ops. (24hr): +351 963 443 339 Medical Director PORTUGAL

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

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 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

Manno joins Hygeia Lemke comes to 7 December State of the Industry: Insurance Emergency Medical German Air Rescue Diary dates Marketing ExecuSummit Services expert Robert Manno has Volker Lemke, who was Director of Sales and Hotel Pennsylvania New York, US joined Hygeia International Projects for German DRF (German www.wxecusummit.com Corporation as Air Rescue) for four years, has resigned at DRF to Director of Air take up a position within the Executive Board of FAI 30 November 7-9 December Ambulance Exchange Flight Ambulance International. Lemke will be solely Managing Reinsurance Disputes Cayman Captive Forum 2004 Services. Prior to responsible for the sales and marketing of FAI’s air Examination of how to avoid a dispute, or to The Westin Casuarina Resort & Spa joining the company, ambulance service. manage the process once it is underway Grand Cayman Mr Manno was Radisson SAS Portman Hotel, London, UK www.caymancaptive.ky President of www.ibclegal.com/reinsurancedisputes Compassion Medical 13-14 December Inc, and owner of 1 December Pricing and Rate Making in Plain English AirAmbulanceConnection.com, a web-based GE insurance promotes Corporate Governance and Regulatory Seminar operation that facilitates air ambulance transactions Issues for the Insurance/Reinsurance Marriott Suites Scottsdale between purchasers and providers around the world. Beale Arena Phoenix, AZ, US This year, Mr Manno sold the company to Hygeia and Designed to discuss key areas of change in the field of www.dormanconsulting.com/seminars joined the management team to oversee the product Inga Beale, leader of corporate governance in the insurance environment, now marketed as The Air Ambulance Exchange. In his GE Insurance offering practical solutions for dealing with such changes 14-15 December new role, Mr Manno will be responsible for increasing Solutions’ continental in the working environment Volatility Trading and Risk Management: the value of this product and managing relationships European operations, The Meeting House, London, UK Measuring The Price Of Uncertainty with air ambulance providers. has been appointed www.ibclegal.com/reinsurancedisputes The Selfridge Hotel President and London, UK Chairman of the 5-8 December board of 10-12 January 2005 SRA 2004 Annual Meeting: Risk management at the Analysis: Property/Casualty Insurance Industry: Smile corner Munich-based legal Statutory Accounting and Financial The Profession and the Future Wyndham Hotel entity GE Frankona Palm Springs, California, US Reporting Rückversicherungs. www.sra.org Trump Marina Atlantic City, NJ, US Price of Ms Beale succeeds Ken Brandt who returned to 7 December www.irua.com the US earlier this year to lead the company’s State of the Industry: Insurance North America and Asia Re businesses. banking “I’m very excited about the opportunities and Marketing ExecuSummit 11 January 2005 Hotel Pennsylvania, New York, US Market Issues: Are Claims under challenges this appointment brings,” said Inga. “Ken This extract is taken from an Brandt and the team in Munich have done some www.execusummit.com Control? actual conversation between a The Insurance Institute of London great work toward achieving GE Insurance 5-8 December Lloyd's Old Library control tower and a plane: Solutions’ goal of re-connecting with customers and Society for Risk Analysis 2004 Annual London, UK The controller working a busy brokers. I look forward to helping build that service Meeting pattern instructed a 727 on to an unsurpassed level in our market.” Risk Analysis: The Profession and the Future 11-13 January 2005 downwind to make a three-sixty to GE Insurance Solutions Chief Operating Officer Rick Wyndham Hotel & Resort Property/Casualty Insurance Joint do a complete circle, a move used Smith added: “Inga has been a great leader in Europe Palm Springs, California Industry Forum to provide spacing between aircraft. and her global background and regional experience make www.sra.org Insurance Information Institute conference her perfect for this role. We’re confident she will excel.” Waldorf-Astoria Hotel The pilot of the 727 complained, Inga started her reinsurance career in the London 6-7 December New York, NY, US “Don’t you know it costs us two market in 1982, joining GE in 1992 to manage the Property/Casualty Insurance Industry: thousand dollars to make even a UK underwriting team. In 2001 she moved to Kansas Cash Flow Analysis & Forecasting 17 January 2005 one-eighty in this airplane?” City to lead the Global Underwriting Operations for Trump Marina Is the Asbestos Time Bomb Still Ticking? Without missing a beat the GE Insurance Solutions (then ERC) and was Atlantic City, N.J., US Zurich, Arlington Street appointed Global Underwriting Centre of Excellence London, UK controller replied, “Roger, give me www.irua.com four thousand dollars’ worth.” Leader in August 2002. She was promoted to Continental Europe Leader in May 2003.

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

JLT appoints CEO for Ace recruits Munich Re exec CONTRIBUTORS Roger Allnutt is a freelance travel writer based Korea ACE Limited recently announced several executive chairs global board in Canberra, Australia, and has material appointments. Andrew Kendrick, President and published widely in magazines and newspapers Jardine Lloyd CEO of Ace Bermuda, has been named Chairman The International Insurance Society (IIS) has elected in Australia and New Zealand. He travels widely Thompson (JLT), and CEO of Ace European Group. Keith White, Karl Wittman of Munich Re, Germany, as Chairman both in Australia and overseas. insurance and presently Chief Administration Officer of Ace of the Board of Directors. Wittman is a member of reinsurance broker Limited, has been appointed Executive Officer, the Board of Management of Munich Re, Dick Atkins is chief counsel for International and risk management Bermuda Companies. Rees Fletcher, Senior Vice responsible for Asia, Australasia and Africa. He has Recoveries, Philadelphia, which provides global adviser, has appointed President, Ace Bermuda, has been appointed the been with the company since 1961. legal assistance to the travel insurance industry. He Lee Choon Soo as new President and CEO of Ace Bermuda. Judith Commenting on the appointment, Patrick Kenny, is in charge of International Recoveries’ legal hotline the new Gonsalves, Vice President, Ace Bermuda, has been President and CEO of the IIS, said: “Karl has been and has been involved in handling international legal incidents for the past 20 years. He can be reached President/CEO of its promoted to Senior Vice President. involved with the IIS for many years and his via email on [email protected] Korean office. “These senior management appointments reflect appointment as Chairman will serve to enhance Mr Lee will be the strategic importance we assign to Europe, our membership and the organisation through his Jane Collingwood is a freelance health writer responsible for JLT’s which represents a core part of the Ace Group, distinguished career at Munich Re and his and journalist, based in Bristol, UK. Her business operations in and Bermuda, a home market and the location of exceptional reputation in the industry.” background is in health, psychology, and Korea. He has spent more than 20 years in the our global headquarters,” said Evan Greenberg, The IIS is headquartered in New York and has scientific research methods. Jane writes regular insurance sector from both an underwriting and broking President and CEO of Ace Limited. nearly 1,000 members from 90 countries. health news stories and publishes articles on a perspective and during his long career with Hyundai “The executives we have selected for these wide variety of health topics. Fire & Marine, Mr Lee spent a number of years assignments possess considerable business working overseas in London, Tokyo and Singapore. experience, outstanding leadership skills, and Saby Ganguly is an India-based business writer Commenting on his new role, Mr Lee said: “JLT has substantial knowledge of their markets.” with more than 20 years’ experience, including 16 in the Middle East. He is also the founder of been successfully operating in Korea since 1993 and Edward Levin joins Ace European Group as A first for Fortis IndiaOneStop.com, which is one of India’s earliest has an excellent reputation. I am looking forward to Executive Vice President, Accident & health and established business-to-business websites. strengthening and growing the business and to firmly Personal lines. He will report jointly to Mr Michael Fortis has named the establishing JLT as the leading provider of specialist Furgueson, President & Chief Operating Officer, company’s first Chief iJET Travel Intelligence (www.ijet.com), the insurance and reinsurance broking services in Korea.” Ace Europe and Mr David Miller, Executive Vice Operating Officer travel risk management company, provides real- Mr Mike Methley, Managing Director or JLT Asia, President, International Accident and Health. (COO) as Herman time travel intelligence information through its commented: “We are extremely pleased to have Lee Mr Furgueson said: “Ace’s European Accident & Verwilst. Formerly award-winning Worldcue (copyright) technology leading our Korean business. His invaluable Health business goes from strength to strength. Deputy Chief platform for tracking and communicating with experience will help strengthen our broking expertise Stronger marketing, more online offerings and Executive Officer, the travellers. iJET services are backed by regional and and will ensure our continued success in Korea.” greater product diversity have enabled us to Belgian-Dutch category specialists from the fields of intelligence, security, travel, and health who staff an around- increase our presence in this key European market, banking and insurance the-clock operations centre in Annapolis, MD. and Edward’s skills and experience will ensure that group hopes the new we continue to take advantage of every position will help to David Ing is a freelance journalist covering Demmon chooses Life opportunity.” encourage the ‘one mainly travel and tourism issues in Spain. He Meanwhile, Ace USA announced the appointment company’ concept. writes on air transport for a leading international Zurich Financial of Connie Germano as Senior Vice President to “Verwilst is best positioned to assume this new role news agency, as well as contributing special Services Group lead the Excess Casualty and Custom Casualty given his success in steering Fortis Bank through the features to Newsweek and writing in in-flight (Zurich) has announced businesses. Ms Germano will be based in New first-ever European cross-border integration,” magazine articles and guidebooks. the appointment of York. stated the company. David Demmon, 46, “I am pleased that Connie is assuming additional “He will combine his new function with his Milan Korcok is an award-winning freelance as Chief Financial responsibility for management of the Excess responsibilities as Chairman of Fortis Bank’s health policy and economics writer who covers travel insurance, public health, and medical Officer of its Global Life Casualty and Custom Casualty units,” said Susan Management Committee. As COO, he will be education issues in Canada and the United States. Insurance business – Rivera, President and CEO, Ace USA. “Connie’s responsible Fortis-wide and cross-businesses for He has been writing about health financing and effective 1 November proven leadership and industry experience will be Human Resources, Information technology, Facility, policy issues in these countries since the 1960s 2004. In this newly instrumental as we continue our efforts to meet the Operations, Risk and Legal & Compliance. and is a frequent contributor to leading North created position, David needs of our clients.” “Other Fortis-wide support functions will report as American professional journals and consumer Demmon reports to follows: Corporate Strategy and Corporate media. He lives in Fort Lauderdale, Florida. Paul van de Geijn, Chief Communications will report directly to CEO Jean Executive Officer of Votron. Chief Finance Officer Gilbert Mittler will Roger St Pierre is one of the UK's most Zurich’s Global Life Insurance business. head a realigned CFO Office and assist the CEO in experienced travel, music and motoring writers, Paul van de Geijn said: “We are implementing the Kirby and McKinnon assessing business performance and evaluating and has visited 111 countries on five continents. organisational structure announced in April. I am critical strategic decisions.” His insights appear in a wide range of consumer and trade publications. Roger's 33 published delighted to count on the vast experience David to assist books include a history of McDonald's, guides to brings from the Farmers organisation. I expect him such destinations as Orlando, Moscow, to apply strict financial discipline and to maintain the Mondial Assistance, Edinburgh and the Costa del Sol, biographies of momentum to strengthen our business results. He the assistance and Marilyn Monroe, James Dean, Bob Marley and will also support a number of initiatives including customer care Europ gets Giet Jimi Hendrix and a range of cycling books, the capital and solvency management.” organisation, has latest of which is A Bike Is For Life. appointed Simon Pascale Giet joins the Kirby as Marketing Europ Assistance Christopher Wales worked in the ferry industry Manager. Group as for over 20 years with such companies as P&O, Mr Kirby will be Communication Stena Line, Eurotunnel and Wightlink. He was 24:7 director Chairman of the Institute of Travel & Tourism, a responsible for all Director. Reporting founder board member and Chairman of the International medical assistance service 24:7 Assist is aspects of Mondial’s to Managing Director Coach Tourism Council and co-founder of the pleased to announce the appointment of John Browne customer marketing Martin Vial, Giet Association of Tour Operators to France as Commercial Director. With some 20 years’ activity, with a becomes a member (ABTOF), for which he was awarded the experience in travel assistance operations management, particular focus on increasing profitability for its of the Group’s Tourism Medal by the French government. most recently with Inter Group Assistance Services, Mr clients through renewals. Executive Browne has been recruited to develop and expand “Mondial believes in working in complete Committee. Published on behalf of 24:7 Assist’s UK and international client portfolio. partnership with its clients to grow their business Holding a post- Voyageur UK (Travel Services) Ltd, and increase customer satisfaction. A successful graduate degree Voyageur Buildings, 43 Colston Street, marketing strategy is a vital element. I am very (DESS) in political and social communication, Giet, Bristol BS15AX, UK excited to be taking on this new role and look 42, started her career in an advertising agency forward to the challenges and opportunities that lie within the Expand Group. In 1990, she was put in The information contained in this publication has been Bartlett gets Liberty published in good faith and every effort has been made to ahead.” Kirby charge of communication at ComDev, a subsidiary ensure its accuracy. Neither the publisher nor Voyageur Ltd Tim Bartlett has been made Senior Underwriter of commented. of Caisse des Dépôts tasked with the development can accept any responsibility for any error or Liberty International Underwriters. Mr Bartlett has Mondial has also of cable television. In 1994, she joined the Vivendi misinterpretation. All liability for loss, disappointment, 20 years’ insurance experience, while his most appointed Claire Universal Group where she took charge of the negligence or other damage caused by reliance on the recent position was at Gerling General Insurance McKinnon as launch of the first mass-market pager, Tam Tam, in information contained in this publication, or in the event of bankruptcy or liquidation or cessation of the trade of any Company UK Branch, where he was Senior National Sales her capacity as TDR Communication Director. In company, individual or firm mentioned, is hereby excluded. Underwriter for UK & international liability. Manager for its 1997, she was appointed Advertising Director at Commenting on the new appointment, Sean Rocks, Corporate and Travel Cegetel and orchestrated its launch upon the Printed by St. Ives (Roche) Ltd Chief Executive Officer, Europe, said: “We are delighted Division. She will be opening up of the telecommunications market. In to have been able to attract someone of Tim’s calibre responsible for the 1999, she became Communication Director at e- Copyright © Voyageur Publishing 2004. Materials in this publication to Liberty. His tremendous range of experience will be successful growth of TF1. In 2002, she joined Neuf Telecom as may not be reproduced in any form without permission. an asset to us as we continue to develop our business the business from Communication Director before setting up a with brokers both in London and the UK.”` new and existing communication consulting business. INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522 customers. www.itij.co.uk International Travel Insurance Journal