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.

The Latest Liability Facing James Murdoch

In his fathers absence, James Murdoch seems to have taken the roll on to defied the might 'new international' from the intense scrutiny of the commons culture committee. Like a typical newspaper story it seems to be taking twists and turns at every point.

James denied repeatedly that he had been told three years ago about evidence that hacking went beyond a single journalist and where new international/news of the world could find themselves liability for this action, however his version of these matters where contradicted by 2 top executives, Tom Crowe stating that James Murdoch evidence was 'disingenuous'.

If the true story ever comes out the Murdoch empire may face substantial liability case and in any case lawyer may well consider claiming on current information against any Professional Indemnity Insurance policy in place or indeed direct against the Directors and senior members of staff.

Perhaps on a Directors and Officers Insurance where directors or senor executive may have to defend any allegations individually.

How will the Euro effect the UK Insurance market

With most of Europe in turmoil regarding the Euror crisis, if you look towards the London market providing insurance around the world, more often getting paid in Sterling, Euro and Dollars, a careful eye needs to be had on currency exchange rates, particularly when considering financial lines type risks, which tend to be very expensive.

Clearly if a large corporation came to the London market requesting cover in their country for lets say a bank or financial institution, the premiums could be extremely high when considering Professional Indemnity Insurance, Directors & Officers Insurance and covers such as Perspectus Insurance and Bankers Blanket Bonds.  Therefore if the client were to pay in Euro, the underwriting criteria may well have to take into account any currency exchange rates, as clearly this could effect the value of the premium asked.

Again with respects to Dollars, Sterling and Euro fluctuations, this is a constant headache for insurers and underwriters to take into account.  It may well be that the safest option could be to ask for the premium to be paid in Sterling which means that the onus would be on the client to forward the monies to the provider, insurance broker or MGA.

Strangely enough just recently it was reported on a case where a company operating accross Europe requested their brokers in the London market to obtain a Professional Indemnity Insurance and Directors & Officers Insurance at a premium of €200,000 and having placed the order, the exchange rate of Euro v Sterling dropped.

So I suppose you could argue that you gain on some days and lose on others.  The question here is does the average insurance broker or insurer simply keep the currencies they receive in their bank accounts, without moving or exchanging back into Sterling