Costa Concordia Cruise Ship Highest Marine Insurance Loss

It is estimated that the Costa Concordia cruise ship disaster will cost insurers between approximately £326m and £653m. This would make it the highest ever marine loss.

The previous largest ever marine insurance loss was the Exxon Valdez oil disaster in 1989 which cost insurers approximately $500m including the cleaning up of the pollution damage.

Liability insurance claims from injured passengers will determine the final cost to insurers, but it is expected that the hull of the vessel is going to be a total loss with an apporximate value of $500m.

 

Help With Property Insurance Claims Following Riots

Commercial Property owners wondering where they stand following the recent riots should take note of the following.

The local police authority has a legal responsibility to reimburse anyone sustaining damage to property as a result of a riot under the Riot Damages Act 1886. Any claim under the Act must “be made in writing and received by the local police authority within 14 days of the alleged incident”. The prime minister has extended this notification period to 42 days in respect of the recent riots.

Insurers typically require claims for riot damage to be reported within 7 days of the incident as part of their claim conditions. Insurers are then able to recover their outlays from the Police Authority. 

Something worth noting is that these rules exclude liability for loss or damage to cars left on public highways, goods left in shops for repair and/or consequential losses.

Wondering what constitutes ‘A Riot’ ?

The 1886 Riot Damages Act defines Riot as circumstances:

• Where twelve or more persons who are present together use or threaten unlawful violence for a common purpose and the conduct of them (taken together) is such as would cause a person of reasonable firmness present at the scene to fear for his/her safety, each of the persons using unlawful violence for the common purpose is guilty of riot.
• It is immaterial whether or not twelve or more use or threaten unlawful violence simultaneously.
• The common purpose may be inferred from conduct.
• No person of reasonable firmness need actually be, or likely to be, present at the scene.
• Riot may be committed in private as well as public places.

Further information on commercial property insurance can be found at our website.

Claims – A Lighter View

With the recent doom and gloom of natural disasters, economic belt tightening and the not too distant memories of weather and snow disruption , it is always good to remember of the lighter side of life.  In line with this, one insurer has released some very interesting details of its most weird and wonderful motor insurance claims.

One customer was driving along when a ‘frozen squirrel fell out of a tree and crashed through the windscreen’.  Another driver was visting a local agricultural show when ‘my parked car was hit by an escaped bull’. 

My favourite though, is this one.  A gentleman reversed out of his garage straight into a wall but failed to accept it was a ‘fault’ claim, insisting instead that it was his wife’s fault as she had parked the car there. 

Speaking as a ‘lady driver’ I think it’s only fair that the wall should step forward and take its share of the blame as well!

Japan Earthquake

Following the recent earthquake and tsunami in Japan, which left an estimated 10,000 people either missing or dead, Insurers have delivered their first verdict on the effect of damage costs to the global insurance community.

Whilst the Lloyds market in London have played down speculation about how hard they would be hit by the effect of claims, citing the majority of their business in Japan as ‘reinsurance’, ‘Reinsurers’ such as Munich Re are thought to be under mounting cost pressure. 

Because the Japan catastrophe came hot on the heels of the floods in Australia and the New Zealand earthquake, it is thought that this time will prove a turning point for Reinsurers, who may need to raise rates to compensate for the effect of worldwide events.

Bloggers Guide to….Insurance Brokers (Part 2)

We’ve already explored some of the benefits of using an Insurance Broker, rather than buying your insurance off the internet or from a call centre, but what about when you have a claim, grow your business or renew your insurance?   Largely the benefits of using a broker remain the same – you can expect quality advice, assistance and support, wherever you’re at with your business.

Anyone who’s ever had a claim will know how frustrating it can be waiting for claims to be processed and paid out.  If you are insured with a call centre or an internet provider, you can find yourself caught up in a myriad of call centre waiting times or standard question sets, with call handlers unable to give you the ‘human’ response you are looking for.  Customers returning to use a Broker  from buying their insurance on the internet, tell us that they didn’t appreciate just how much we supported them, until they had a claim.  Not only do Brokers give advice on what and not to claim for, they can hold your hand through the claims process, taking issue with unsatisfactory results and advising you whether to appeal for a better settlement.

Growing your business is an exciting but uncertain process, with increased costs and forecasts dominating your business plan.  Many people forget to factor in their changing insurance needs and a good relationship with your Insurance Broker will ensure that you re-visit your insurance needs and put in place any additional cover that is required.  A move from being a Partnership to a Limited Company for example usually requires you to have Employers Liability Insurance in place, which you may not have had before.  Talk to your Broker and use their skills to your best advantage.

Renewing your insurance each year is an excellent opportunity for your policy cost and details to be reviewed, however buying your insurance on the internet or from one insurer, will not offer this.  Using an Insurance Broker means that we will rebroke your insurance each year, looking at possible cheaper alternatives and also reviewing things like your turnover and staff levels, if applicable.  New policies with different Insurers appear on the market all the time and what wasn’t available last year, may well have changed.  Again, use your Insurance Broker to your best advantage and get them to a have a good look round the market on your behalf.  This will cost you nothing in either time or money and may well result in a better price or better cover than last year.

All Insurance Brokers are regulated by the Financial Services Authority so you can be sure that the advice and assistance they give is regulated and appropriate.

Businesses looking for insurance help and the services of a broker, can visit www.midlandsinsurance.co.uk or phone 01623 641386 for further assistance.

Bloggers Guide To …Insurance Brokers (Part 1)

Why use an Insurance Broker?  There’s so much talk these days of cutting out the middle man and getting the cheapest price, do we really understand what an Insurance Broker can do for us anymore?

Well, the first plus of using an Insurance Broker is that you’ve got a responsible, accountable human being to talk to.  Most Brokers don’t operate ‘call centre’ type businesses, so you usually get a named contact who will deal with your enquiry right through to buying your insurance.  This has real benefits, because Insurance inevitably involves a shed-load of paperwork and several ‘administrative procedures’ that Insurance Companies need you to go through, to demonstrate that they have treated you fairly and have made your ‘insurance contract’ clear to you.  This means that you will inevitably need support from a human being who knows what they are talking about.  Brokers are definitely the ‘place to be’ for this advice, as they are usually all-round business specialists (meaning that they have a good mind picture of your business) and insurance specialists (meaning that they understand both Insurance and the Insurance Industry).  They will spend a good amount of time getting to know you and your business, asking poignant questions and making sure that you understand what the insurance excludes as well as includes.   Not forgetting that all Insurance Brokers are regulated by the Financial Services Authority, so you can be sure that they are ‘honorable’ individuals who will have your best interests as well as their own sacred ‘FSA approval’ at heart.

Nottinghamshire businesses looking for insurance help and the services of a local broker can visit: www.midlandsinsurance.co.uk or phone 01623 641386 to have their insurance needs assessed and fulfilled.

Aviva Confirms Commercial Insurance Still a Bargain

Aviva UK GI Chief Executive David McMillan said this week that Commercial Insurance rates were still steady, meaning that there are some excellent deals to be had by commercial insurance buyers looking for a good deal. Midlands Insurance Services have also found this to be true and have been using Aviva Insurance and a wide range of other top brand Commercial Insurance Companies to get the best deal for its customers.

“We are still finding a degree of flexibility in Insurance Companies which is good news for our clients” said Chris Needham Insurance Broker, ” Go to www.midlandsinsurance.co.uk for further information on insurance rates or subscribe to our blog.

Quinn UK market re-entry

Quinn’s administrators have this week confirmed that they are targeting a re-entry into the UK commercial market, meaning that brokers may see a return of the insurance products withdrawn after the recent Administration of the Company. Many brokers wait with baited breath to see what form the commercial re-entry will take and when this will happen. Quinn have typically been used by UK insurance brokers for commercial clients needing high-risk liability insurance, however are also well-known for their ‘young driver’ insurance product which has been partially re-introduced for drivers holding provisional licences. For full advice and support on insurance matters go to www.midlandsinsurance.co.uk.

Quinn Insurance Pushing For Full UK Return

Quinn Insurance is reported to have been given the go ahead to make a partial re-entry into the UK insurance market, with the Irish Financial Regulator allowing it to write motor insurance cover for holders of provisional driving licences in the UK – this accounts for about 10%  of Quinn’s revenue. 

Quinn is also pushing to be allowed to write other types of business insurance in the UK and is talking to the Irish Financial Regulator about this.  Quinn is used by many UK Insurance Brokers, for High Risk Liability Insurance and many of these will be waiting to see what impact this latest move has on this area.

Go to www.midlandsinsurance.co.uk or subscribe to our blog to receive further news of the insurance industry, or to get help planning your insurance needs.

Big Freeze Costs Insurers ££££s

Aviva Insurance (formerly Norwich Union) has reported that the exceptionally cold winter we had this year has resulted in Insurers paying out a massive £650 million in claims.  These 335,000 claims were due to a variety of causes, including damage to homes and businesses from the weather and vehicle related claims from the snow and ice. A typical insurance claim during a cold spell is likely to be roof damage caused by snow, but Insurers have seen nearly double the claims they would usually expect during the winter. 

It’s often after a claim that customers see the real value of using an Insurance Broker rather than buying on line, as a Broker can give you impartial advice relating to the claims process and is not tied to the Home or Car Insurer. 

Midlands Insurance Customers are reminded to report claims as quickly as possible after the incident occurs and always check with your Broker first before doing any work to put right damage.  Call us on 01623 641386 for further advice.  www.midlandsinsurance.co.uk