AXA to de-list from Stock Exchange whilst the UK Insurance Industry Need Incentives

NCD News: AXA to de-list from Stock Exchange whilst the UK Insurance Industry Need Incentives to stay - 27.01.10

>> NCD News: Facebook: murder, affairs, suicide, bullying ... a real society!
>> NCD News: How many No Claims Bonus years do you have? Are you sure?
>> NCD News: Women lying about rape to claim compensation
>> NCD News: "Up to 75% No Claims Discount!" they shout ... "up to"???

AXA to de-list from Stock Exchange whilst the UK Insurance Industry Need Incentives: >>>> Insurance giant AXA has said that it will voluntarily de-list from the New York Stock Exchange because of inadequate trading volumes. Once this has happened they will focus on the trading of its ordinary shares on the Eurotext Paris where 95% of its shares are traded. Henri De Castries from AXA commented that the costs of maintaining the listing outweighed the benefits they gained. It is thought that the de-listing will occur before the end of the first quarter this year.

Meanwhile, AXA Assistance has joined forces with Complectus to to offer an insurance product aimed at those who have leased vehicles. The cover will pay for the costs of bringing the car up to the standard required to return it to the dealer. Known as Lease Guard, the product will cover scuffs, chips, small dents, interior trims and alloy wheels - all areas which are not often covered by standard car insurance policies. AXA claim that refurbishment costs usually come to more than £300 and the product is designed for those managing fleets, financing companies and vehicle manufacturers.

>>>> Coventry man, Jonathon Khairule has won an out of court settlement of £2m after his oxygen starved birth left him with cerebral palsy. He is now confined to a wheelchair and cannot use his arms or hands. Mr Khairule claimed that he had not learned until he was in his twenties that the lack of oxygen at his birth caused his disability. Unfortunately he was outside the time limit for a claim and had to fight for the right to sue. This was granted, but the NHS trust involved settled out of court and have not admitted any fault.

>>>> Essential travel have suggested that top high street names such as Barclays, The Post Office and American Express are overcharging their customers on their travel insurance simply because they are more well known. Stuart Bensusan from Essential Travel commented that these companies are abusing the confidence that consumers have in them, often resulting in inflated prices. The difference between what The Post Office will charge for a single trip Europe policy compared to Essential Travel was an amazing 50%. Mr Bensusan says that companies such as Barclays should not sell themselves as travel insurance specialists if that is not the bulk of their business.

Meanwhile Sainsbury's Travel Insurance has stated that of those people who are booking holidays now, 13% have no intention of getting travel insurance. They have also noted that there has been a 19% drop in the numbers of people booking holidays at this time of the year compared to last year. Sainsbury's are urging customers to think again about leaving insurance until the last minute as they may need to make a claim for insurance before they travel. If you took out insurance after finding out an airline was going to strike, for example, you would not get your cancellation costs.

>>>> With a reported rise in apprenticeships of 7% during 2009, businesses are being warned that they may face legal bills if they are not properly insured. Price comparison site Coverzones.com has stated that the cost to businesses could be as much as £39.2m. 15,695 new apprenticeships were started in 2009 and each of these must be covered by employers liability insurance. If this is not in place, a business can be fined £2500 per day. Coverzone commented that as many as 50% of small businesses may not be aware of the need for insurance and the Government seem to be doing little to advertise the fact. They say that small businesses need more guidance.

>>>> A study by PriceWaterhouseCoopers for the ABI has shown that the UK insurance industry added £8bn to the UK economy despite the recession. It paid the third highest amount of corporation tax and its payments were only 8% less than last year, compared to 39% across the rest of the financial sector. The statistics were revealed in the Times by the director of Financial Regulation and Taxes with the ABI Peter Vipond, who commented that the Government needs to act on tax regulation to promote competitiveness in the market and to avoid insurers moving off-shore. He also points out that the insurance industry is quite different to the rest of the financial industry as a whole.

In addition, the ABI has also shown that the average wage in the UK is £25,000, while those in insurance earn on average, £42,000. The sector also employs 313,000 people who contribute an average of £18,667 in taxes each year. The figures have added to the argument that the insurance sector needs more incentive to remain in the UK and pay those taxes. The ABI have said that the higher tax rate, reductions in pension relief and other factors are all putting off senior members of staff in the industry.

>>>> Fortis are the latest in a long line of insurers to offer advice on frozen pipes this winter. They are using the acronym THAW to help their customers remember how to check their homes. Taps, Heating, Attics and Water should all be checked to ensure the home is safe and they also point out that insurance must be up to date. They have also issued the usual advice about keeping heating on.

>>>> A study by Swiftcover known as the "Rocks or Sucks" poll (yeah, we're a bit sick of it too) has discovered that 74% of those polled think Facebook "rocks" more than Twitter. They also found that 68% of people prefer the iPhone to the Blackberry and 66% would rather use Microsoft compared to Apple. So what "sucks"? Apparently Katie Price, Tiger Woods, Gordon Brown and traffic jams can claim the top spots against their closest rivals in the "sucks" stakes. Swiftcover's marketing director commented that 2009 seemed to be the year of social networking, but she couldn't say how this related to insurance ... because it doesn't. The reason we are giving them ink space is because we thought people should know how Swiftcover workers spend their time. Impressed? Let us know.

>>>> Swinton is warning motorcyclists that they need to declare the modifications made to their bikes as they may jeopardise their insurance by failing to do so. Changes to the exhaust system, suspension and wheels are the most common modifications made and if the change is performance enhancing, it can change an insurance premium. Anything less than a 5% change in the engine capacity will not affect premiums. Swinton advises that bikers inform their insurer before they make the modifications so they know the impact of the change on their premium. They also point out that installing a tracker device or lock will lower premiums.

A further poll from Swinton has found that young people are indulging a dangerous trend known as "car cramming". They found that 30% of drivers between 17 and 25 regularly carried at least one passenger more than the law allows and 15% would squeeze in two extra and 9% would even fit in a third. The reasons given were saving money on petrol, taxis and public transport. If caught the offender can expect points on their licence and a fine. Swinton warns that this can affect premiums and that the extra weight can affect the car itself. The excess weight can make handling the car more difficult and can damage suspension and the exhaust.

>>>> The AA has claimed that the money required to fix all the potholes in the UK could be raised in just 100 days from the VAT paid on fuel. They say that the Government is currently getting £1.1m in extra tax per day due to the higher costs of fuel at the moment. The Local Government Association has said that they have a £8bn shortfall which has built up over time and that extra money is urgently needed to fix problems resulting from the cold snap earlier this year. The AA believes that the government is benefiting from the higher fuel prices and could be putting the money to better use. Edmund King from the AA commented that people need to see where their taxes go and in this case the results would be obvious. The AA is urging drivers to tell them about potholes via AA Pothole Watch in a bid to build up a picture of the problem.

>>>> Telecoms company O2 has joined forces with Mondial Assistance to launch their first insurance product. They will offer single trip and annual travel insurance as well as a product known as "flow" which will be paid monthly where the cover level can be increased and decreased depending on the trip. The Chief Executive of O2 has said that the company is aiming to become more of a general financial brand and already has two pre-paid credit cards in the market in conjunction with NatWest.

>>>> Standard Life has signed a deal with UKTV channel Dave to be its sole broadcast sponsor during weekend peak broadcasting. The deal begins on Saturday January 30 and will run until the end of April and will cover the hours of 9pm till 2am, Saturday and Sunday. Standard Life are hoping to encourage a younger audience to think about their pensions by encouraging them to log on to joindave.com, where more advertising will encourage viewers to act on the advertising they saw over the weekend.

>>>> Aviva has appointed ZenithOptimedia as its agency for digital, media buying and planning. The hope is that the move will increase its advertising impact around the world. It is also hoped that the new agency will encourage consistency in communication with customers. Aviva's Chief Marketing Officer Amanda McKenzie, commented that Aviva has created a single brand and the move to a global agency was timely to amplify their brand around the world. †