Thursday 24 November 2011

Professional Indemnity Insurance Notes


There has been some movement in markets on Professional Indemnity rates but only in the traditional classes such as solicitor Independent Financial Advisors, survey evaluation surveyors where as the other misc classes for IT, business consultants management consultant etc, rates for Professional Indemnity have stayed at very low rates and do not look like moving for some time yet.

It only follows the insurers that have put pressure on brokers and on solicitors, representing them on claims to reduce their costs and broker commissions.

Monday 21 November 2011

Mortgages for 1st time buyers


The government are trying several ways to kick start the first time buyer markets by introducing new concepts such as shared equity, joint ownerships, rent and buy government schemes at up to 95% mortgages.

Mortgage brokers, Building Societies and Builders can all help with the promotion of the new ideas to help 1st time buyers on the 18 November 2011. 

Leading estate agents said in London it was almost impossible to buy a house if you were a 1st time buyer because of the high house prices and high deposits required, sometimes up to 30% and before lenders would consider an application, other difficulties in the industry was the way in the past the mortgage suppliers had acted, very often not in a professional way and we all know where that leads the USA, UK and Euro zone.

Mortgage Brokers, Banks and Building Societies have gone through a lean time with their own costs to cover themselves against neglect with Professional Indemnity Insurance policies and Bankers Blanket Bonds increasing in price.

There has to also be a mindful eye towards Directors and Officers Insurance to cover any rogue Directors or Officers lending irresponsibly to 1st time buyers.

Sunday 20 November 2011

Benetton's May Face Legal Liability From Vatican

Benetton the clothes company will be having to defend itself against legal action being taken by the Vatican, it has also had comments from the White House. The problem is based on a advertising campaign where Benetton shows images of Angela Merkel and Nicolas Sarkozy kissing each other with a 'Unhate' slogan. Also shown is Obama kissing Hu Jinlao and the pope kissing the lips of Ahmed El Tayyeb.

One hopes that Benetton have a good legal protection insurance policy and that their advertising agents hold a good level of Professional Indemnity Insurance, as maybe Benetton's advertising agents or consultant should have tested the 'rather good idea' before producing the pictures and adverts. Clearly Benetton may will be able to defend a legal action using a legal protection insurance, but may well consider the idea of counter claiming against their advertising agents Professional Indemnity policy base on Professional neglect, for not pre-testing any reactions from the various groups, unless of course they had provided a sample test of reactions to Benetton before producing the pictures, which has of course damaged their campaign and may have cost the company clearly.

Friday 18 November 2011

Unemployment Figures Strain On Government Payment Liability


The high unemployment figures as 16th November 2011 in the UK which have reached in addition of 2.60 million. Worrying particularly as many of the unemployed are young between the age of 16-24, which accounts for nearly 1.02 million of the total unemployed figures. Many companies from across most sectors are either not taking on more staff or making redundancies saying they are with the government trying its hardest to help youth unemployment, by introducing apprentice schemes, many say this is not enough.

Some growth areas can be found and tends to be in specialist areas, for instance Broker Houses, Insurance Brokers dealing in Professional Indemnity Insurance & Directors and Officers Insurance, where there has been a growing demand for this type of cover. A spokes woman for Professional Insurance Agents Ltd, Karler Mears, pointed out that the professional financial sectors have started to see more claims of Professional Indemnity and Directors & Officers type policies, and therefore new staff to support the extra demand being received by companies has opened up vacancies, which could help reduce unemployment in our area and location.

Wednesday 16 November 2011

Sean Quinn of Quinn Insurance


Sean Quinn previous chairman/director of Quinn Insurance is to be investigated for apparently selling of land to his five children only a few weeks before filing for bankruptcy, this is according to a Irish newspaper.

Quinn was declared bankrupt last Friday for 2.8 billion Euro liability and debt, and it seems that the family home at Greaghrahan, Ballconnell, Co. Cauan, was sold to the Quinn children for 100,000 Euro in the beginning of October.

Mr Quinn's liabilities and massive borrowings from the Anglo Irish Bank were used to perhaps fund a host of foreign investments. Peter Kelly claims money owed from un-paid loans and guarantees, although court documents seen by the Irish Independent show the refinancing of the same loans to Mr Quinn and Quinn linked companies that provided the insurance markets with financial products such as Professional Indemnity Insurance.

Insurance particularly for solicitors who pay very high premium were happening even when the state took control of the bank. The legal fees to defend any investigation of Mr Quinn and his companies are likely to be a record amount and should Mr Quinn of provided himself and his company their own Professional Indemnity Insurance or Directors & Officers Insurance, via re-insurance or other supplier they would of course force high liabilities and massive legal costs in any investigation that is to take place.

Tuesday 15 November 2011

Leveson Enquiry/Insurance Liable


What has the Leveson enquiry brought to the table, the behaviour of the met police, the way news paper reporters have been conducting themselves, the involvement of senior management and proprietors of news paper groups.

Andy Hayman a former assistant commissioner of the met who headed up the original 2006 police inquiry into phone hacking at the news of the world, was offered a job as a columnist at the times newspaper, coincidently a part of the Rupert Murdoch's empire.

It has been suggested that Hayman used his column to spring hoad a defence of the hacking activity saying there were only a few victims other people involved at the time was John Yates another former commissioner at the met, and was taken to task about his hiring of a former deputy editor of the news of the world Neil Wallis, who in himself now a phone hacking suspect.

Graham stated that the original phone hacking investigation failed total to acknowledge the massive scale of the wrong doing in the area.

It is also clear that with reference to the mulcaine papers, many other individuals other than these identified in the criminal charges, were or could be involved in phone jacking. Clive Goodman and Glenn Mulcaine have been charged with illegally intercepting voicemail.

Where does this all lead in respect to insurance cover in place or what to consider for both companies and individuals clearly from a company perspective they would need to look to any Professional neglect, individuals and consultants would be facing the same type of claims against their policies to help with any defence and legal cost or damages awarded.

The other clear area where directors could be exposed would be  on any directors and officer of a corporation such as the 'news of the world'. New international both professional indemnity and directors and officers insurance should be very much part of the companies or individuals portfolios of insurances as both policies could respond to help directors or individuals defend themselves against any allegations.