ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS

International Travel Insurance Journal

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ISSUE 63 • APRIL 2006

ITIJITIJAmerican International Group, Inc. (AIG), hasannounced the acquisition of Travel GuardInternational from the Noel Group of StevensPoint, Wisconsin. Milan Korcok reports

Travel Guard is one of the leading providers oftravel insurance programmes in the US, coveringmore than six million travellers worldwide eachyear, said an AIG statement announcing the deal.AIG will also acquire Mercury International, TravelGuard Americas, and the Travel Guard Canadabrands from the Noel Group.Anthony Galioto, President of the WorldwideAccident and Health Division, a wholly-ownedsubsidiary of AIG, said: “The acquisition of TravelGuard International provides significantenhancement of AIG’s existing travel insurancebusiness around the world by adding full servicemarketing, customer service, claims and assistanceexpertise to our underwriting capabilities.”John Noel, founder of Travel Guard, said thecompany’s business and individual customerscould expect a ‘seamless transition’, over thecourse of the acquisition. Noel will continue asChief Executive Officer.A statement released from its headquarters inStevens Point, Wisconsin, described Travel Guardas marketing its products through a network ofmore than 14,000 travel agencies and more than500 travel suppliers in the US, Canada, Centraland South America. It also performsadministration, claims, sales support and customerservice functions for its travel insurance service,and it owns and operates its own internationaltravel medical and travel assistance operations.AIG is a leading international insuranceorganisation with operations in more than 130countries and jurisdictions.

AIG acquires TravelGuard International

The Travel Health InsuranceAssociation of Canada has set up aspecial working group to deal withquality of care, service access andcost and billing issues related to itsburgeoning tourism trade in theDominican Republic. Milan Korcokreports

According to Statistics Canada, morethan 400,000 Canadians visited theDominican Republic in 2003, andtravel agents report those numbershave climbed steadily since then.Writing in the current issue of theTHIA Newsletter, associationsecretary and working group memberLambert Boenders noted: “Over theyears there have been problems inobtaining accurate and reliableinformation, arranging transfers ofpatients to appropriate facilities anddetermining the credentials ofattending physicians in the DominicanRepublic.“THIA members have also had somedifficulties with facilities demandingimmediate payment from clients orwithholding their passports until funds wereguaranteed or received.” Additionally, there weresome problems with non-standardised billingpractices and pricing methods, he added.In attempting to deal with those issues, the THIA

working group met in Toronto recently with Dr JoseNatalio Redondo, the General Director of theGrupo Rescue Hospital Division. Dr Redondoupdated the group on strategies being put in place toprovide a comprehensive network of providers in

the Dominican Republic’s major tourist areas.Boenders also said that the working group will beseeking meetings with representatives of the otherlarge providers of hospital and clinic services in theDominican Republic and Mexico.

Canadian task force targetsthe Dominican Republic

ITIJ Award winner visits Number 10Dr Krish Shastri(pictured), director of‘ITIJ Insurer of theYear’ MediTravelcover Ltd, hasrecently visited 10Downing Street aspart of a delegationinvited to discussissues affecting theUK’s insurance

industry. Hosted by government officials, the visitalso incorporated a tour of the state rooms,including the Cabinet Room, the White DrawingRoom and the State Dining Room.Amongst the topics discussed was the role ofUK travel insurers in emergencies such as thetsunami and Hurricane Katrina. The need for abetter coordinated large-scale responsecapability was underlined by those present,although it was acknowledged that the UKinsurance industry has a well-developed

emergency response infrastructure andrepatriates thousands of Britons every year.Insurers could potentially make a significantcontribution to emergency evacuation in timesof disaster, it was agreed, while the pooling ofcentrally coordinated repatriation resourceswould also be an advantage.In his budget announcement on 22 March,chancellor Gordon Brown revealed plans toestablish a charity that will assist victims ofterrorism, both at home and abroad.

The Office of Insurance Regulation in Florida, US,announced in March that the State Cabinet hasapproved a hearing for input on a rule prohibitinglife insurers from discriminating based on a person’spast or future travel plans. The hearing took placeon the morning of 31 March, and ITIJhopes to have full details of theoutcome of this meeting next issue.Insurance Commissioner KevinMcCarty presented the request to theCabinet as part of the rulemakingprocess for a proposed new lawrelating to ‘unfair discriminationbecause of travel plans’. The creationof the new law was prompted by therefusal of additional life coverage for awoman on the grounds that she hadplans to travel to Israel in the future(see ITIJ 56, September 2005,CCoonnggrreessss ddeebbaatteess iinnssuurraanncceeeexxcclluuss iioonn zzoonneess).The new law aims to prohibit insurersfrom refusing to issue coverage orcharging additional premium based onan applicant’s past ‘lawful’ travel orintent of future ‘lawful’ travel. Therule would extend this prohibition toall lines of insurance.The Office is developing the rule as authorised by theUnfair Insurance Trade Practices Act, which disallowsinsurers from refusing cover or charging differentrates to consumers without actuarial justification.“After travel discrimination came to the attention ofthe office, it was determined that 48 insurers havefiled with the office questionnaires with applicationforms in which they asked about either past traveloutside the US and/or whether the applicant

intends to travel outside the US in the future,”said the Office of Insurance Regulation.It has subsequently directed these insurers towithdraw the forms unless or until they providethe office with the required actuarial justificationfor use of the travel-related questions.In addition to the proposed new rule, the FloridaLegislature is considering two other pieces oflegislation – a Senate Bill and a House Bill – thatwould establish public policy to prohibit usingtravel considerations in underwriting. Similar lawsregarding discrimination due to travel plans havebeen passed in New York, Illinois, Washingtonand Maryland.

East Africa is in the midst of a severe drought thathas already claimed a dozen lives and has left a vastregion reliant on emergency international aid. At thesame time, tourists continue to be bussed to thearea’s game reserves – often oblivious to the plight

of the local people – in an attempt to view adwindling number of wildlife.Despite the desperate situation in Kenya right now,tourists are still being brought to the country to visitthe wildlife parks in a land that is heavily reliant onthis trade to bolster its economy. But many areunaware of the seriousness of the drought in theareas they visit and the effect it is having on the localpopulation and the wildlife.“Many tourists come here, but they pass throughthis area, seeing it only from inside their buses andcars,” assistant district commissioner in Kinango,Ruth Kwekwe, told The Guardian newspaper. “Theyare not informed. They see that it’s dry but theydon’t get the message.”Others are equally angry about the lack of assistancebeing received. With 12 million people nowdependent on aid, the international communityneeds to step up its response to supplement theregion’s cereal programmes, which will only lastuntil April. The last time it rained here was inDecember, and that was only for a couple of hours.Prior to this, it had not rained for five months.But still the tourists arrive, with countries such asTanzania and Kenya desperately trying to keep theirtourist industries afloat, despite the fact that most ofthe region has been reduced to a dustbowl. Thisisn’t easy, however, with hundreds of animals –predominantly the grass eaters – having already diedfrom thirst and lack of grassland.Many animals, such as elephants, are migrating outof these park areas in search of food and water,creating potential

conflictbetweenpeople andanimals.Others havecondensedthemselvesonto thesmallerpatchesof

grasslandthat still exist in the parks.

Either way, the situation is not ideal andsuffering abounds. Some of the world’s best known wildlife reserves,such as the Serengeti National Park in northernTanzania and Kenya’s Maasai Mara Game Reserve,have been rocked by substantial animal deaths; buttour guides are remaining upbeat, reporting still highnumbers of animals like wildebeest and zebra. If thesituation continues much longer, however, tourismin these areas will be affected. And if global warminghas anything to do with it, similar situations seemsure to arise in the future.

WHAT’S INTHIS ISSUE?

REGULARSNews 1Grapevine 6Insurance matters 7Editorial comment 12Health matters 12Travel matters 14Company brief 16Air ambulance news 17News analysis: The US Patriot Act 20World markets: Slovakia 22Hot spots 28Dick’s hotline: Developing problems 28Service directory 30Diary dates 35On the move 35Contributors 35

FEATURES

Making the right choice:Assistance partners 24Handling mental health disorders 26

ITIJ TEAMEditor-in-chief: Ian CameronEditor: Sarah Lee

Sub-editor: Chris Marke

Staff writer: Hannah Langfield

Designers: Eli ButlerChris Marke

Editorial contributor: Kate Ball

US correspondent: Milan Korcok

India correspondent: Saby Ganguly

Legal correspondent: Dick Atkins

Conference manager: Denise Clements

Production: Adele Brown

Production assistant: Helen Watts

Advertising sales: David Fitzpatrick

Finance: Helen Parker

Cartoonist: Chris Duggan

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ITIJITIJInternational Travel Insurance Journal

Philippines attemptsto reassure tourists

Following a coup plot and a declaration of a state ofemergency in the Philippines, a government websiteposted two travel advisories in March in an attemptto reassure fleeing tourists that the country is stillsafe to visit. In addition, the Philippines travel andtourism industry has added its voice to thediscussion by warning the government that thesituation has created a negative perception amongpotential tourists, concerned over their safety if theyvisit the country.“Our tourism industry is good. In 2005 touristarrivals reached 2.6 million visitors,” respondedEdwin Trompeta, regional director of thedepartment of tourism. “The state of emergencyhas not affected the arrival of tourists.”However, this flies in the face of figures that reveal a15 per cent decline in the number of arrivals, whichis described by industry experts as the biggest fall inthe Philippines in decades. In reply, the department oftourism advisory declared: “The country remains safeand secure and primary tourist destinations in thecountry are undisturbed. Law enforcement agenciescontinue to monitor all activities within the touristdestinations to ensure the safety of all tourists.”The department also stated that there had been noreports of major cancellations of groups travelling tothe Philippines. The country is currently attempting toincrease its market share among tourists from China,Russia and India, to compliment the current numbersvisiting from the US, Japan and South Korea. “Weremain on target to hit three million visitors for 2006though the coup scared away tourists,” said IgnacioBunyea, a presidential spokesman.

Bush reauthorisesPatriot ActPresident Bush has signed a reauthorisation of thePatriot Act in a recent ceremony at the WhiteHouse. He signed an extension of the originalPatriot Act law established after the 11 September2001 terrorist attacks on the US.Before reauthorising the act, Bush said: “The PatriotAct has accomplished exactly what it was designedto do. It has helped us detect terror cells, disruptterrorist plots and save American lives. The bill I signtoday extends these vital provisions. It also gives ournation new protections and added defences.”“We will confront this mortal danger; we will stayon the offensive; and we’re not going to wait to beattacked again,” Bush pledged.The new Patriot Act legislation also creates theposition of assistant attorney general for nationalsecurity at the Justice Department. Bush said: “Thiswill allow the Justice Department to bring togetherits national security, counterterrorism,counterintelligence and foreign intelligencesurveillance operations under a single authority.”Furthermore the bill contains provisions to assist lawenforcement agencies in the fight againstmethamphetamine (known as meth) dealers. “Thebill introduces commonsense safeguards that wouldmake many of the ingredients used in manufacturingmeth harder to obtain in bulk and easier for lawenforcement to track,” the President added.

Turn to p20, News Analysis, for more on the Patriot Act

African droughtthreatens tourism

NEWS2

International Travel Insurance Journal www.itij.co.uk

Meeting held ontravel rule

A new survey by UK supermarket chain and supplierof a range of personal lines insurance policies, Tesco,has found that many people still remain oblivious tothe importance of travel insurance. The findingsconfirmed that the majority of travellers from the UKdo not consider such insurance necessaryfor a short break – predominantlybecause they don’t realize thepotential cost of repatriation.As previous surveys have revealed,many holidaymakers believe theEuropean Health Insurance Card willcover them in the unfortunate event theyneed hospital or medical treatment.However, the card does not cover aperson for repatriation, a scenario many failto envisage and even more do not realizethe potential cost of. Tesco’s new survey of1,200 respondents revealed that 75 per centhad ‘no idea’ of the high cost of repatriation. This translates to around 2.5 million travellers from theUK not taking our travel insurance because they don’tthink they’ll need it. With the World Cup approaching,many Europeans will be travelling for short periods oftime to see matches and too many of these peoplewill not have adequate travel cover. Again, the questionis raised: who should be taking more responsibility toeducate the traveling public about the essential matterof insurance cover for their trip?

Public still unaware

International Travel Insurance Journal www.itij.co.uk

NEWS4

HK developmentencouragingHong Kong Commissioner of Insurance RichardYuen has been encouraging insurers in the countryto tackle competitive market challenges bydeveloping new products and exploring newbusiness opportunities. The Office of the InsuranceCommissioner’s (OCI) annual report said thatdemand for insurance will grow as people andcorporations in Hong Kong become more aware ofthe need to protect themselves against risk.Opportunities can be found in existing and potentialnew lines of general business, such as medical,directors’ and officers’ liability, product liability, andthird party liability insurance, said Mr Yuen. Long-term

insurance business in Hong Kong has been sustainingdouble-digit annual growth for the last 10 years,which is reportedly reflected in the increasingpopularity of investment-linked products.Mr Yuen and his office have even worked outspecific plans for travel insurance in the country.New regulatory measures have been developedthat aim to promote cooperation between theinsurance and travel industries. Included under thenew system is the ability for travel agencies tobecome registered as travel insurance agents toenable them to sell this type of insurance.“The OCI is committed to enhancing insuranceregulation and adhering to the highest internationalregulatory principles and standards to meet anincreasingly dynamic and competitive marketenvironment,” commented Mr Yuen. At 31 December, there were 175 authorisedinsurers, around 49,700 appointed insurance agentsand just over 5,000 authorised insurance brokersoperating in Hong Kong.

UK tourists haveless cash to splashNew research published by Halifax Travel Insurancereveals that the purchasing power of UK tourists inmajor European holiday destinations has decreased byup to 16 per cent in just four years. The HolidayPurchasing Power Index (HPPI) shows thatholidaymakers travelling to Germany for the WorldCup in the summer, for instance, will need to take 13per cent more spending money than they would haveneeded for a comparable trip in 2002.Holidaymakers travelling to Spain, the UK’s favouriteoverseas destination, will find their purchasing powerhas decreased by almost 16 per cent since 2002,while UK tourists travelling to Italy will need to take 14per cent more money than they did four years ago tohave the same standard of holiday.Despite the rise of budget airlines and Internet travelagents, which have reduced the costs of booking aholiday, the HPPI findings show the importance ofconsidering the whole cost of a trip before choosing adestination. Travellers need to factor in currencyexchange rates and the cost of living.Vicky Emmott, senior underwriting manager forHalifax Travel Insurance, said: “It is important whenchoosing a holiday destination that travellers not onlyconsider the cost of travel and accommodation, butalso how much it will cost to purchase goods andservices when they are in the country. Holidaymakersshould check the newspapers to see how the poundis performing against other currencies and ask theirtravel operator how expensive it is to eat out and visitattractions at their preferred destination.”

Insurance the keyfor winter cruisesWinter cruisers should ensure they have adequateinsurance before setting sail, according to a newreport by American Express Travel Insurance, whichhighlights the huge cost of failing to heed this advice.Joanne Field, marketing manager at AmericanExpress Insurance Services, said: “When people aretaken ill at sea and need urgent treatment,transportation from the cruise ship to the nearesthospital can be an added complication, with costsrunning into four, if not five, figures.”Recent research by P&O Cruises has revealed thatcruise holidays have overtaken skiing trips as thewinter break of choice and, although all boats havetrained medics onboard, insurance is essential forpeace of mind.“By opting for a cruise, your holiday begins themoment you board, so make sure travel insurance issomething you never set sail without,” Field advises.

Eyes on the prizeThomas Cook India Limited (TGIL) is reportedly onthe acquisition trail. According to Indian newswirerediff, the company is eyeing overseas and domesticacquisitions in the areas of travel insurance, holidaypackages, travel and foreign exchange.The man in line to be TCIL’s new managing director,Madhavan Menon – currently the company’sexecutive director – is particularly interested inexpanding the business into West and other parts ofAsia. The company has reportedly become moreaggressive in its expansion plans since being takenover by Dubai Financial LLC earlier this year for anestimated Rs423 crore ($92 million).“We would like our business to double or triple in thenext two to three years and inorganic expansion isone of the ways to achieve that,” commentedMenon. From its current network of 45 branches in19 cities, TCIL plans to expand to 150 cities withinthis time.

Bomb compensationhits $7 millionThe cost of caring for the Australian victims of theterrorist attacks on Bali and London has reachedalmost $7 million, the Australian government hasrevealed. The money has been spent on schemes tocover victims’ medical expenses and provide a rangeof other financial support.Although the Australian government has beencriticised for not endorsing a national compensationscheme for victims when it first unveiled its funding in2002, the country has set aside $15 million so far foraid, which is in stark contrast to the UK government.Some British victims have been forced to go toextreme measures, such as selling or remortgagingtheir houses, in order to paymounting bills. Karen Jameson,the UK High Commission deputymanager for press and publicaffairs, said UK victims’ requestsfor assistance were treated on acase-by-case basis.“They are treated to the samecover as anyone else under theNational Health Service,” sheadded. She also said thatresidents were encouraged totake out travel insurance to coverany injury sustained abroad.The US has implemented asimilar scheme to the Australianmodel, with individual medicalexpenses paid up to US$50,000.Mental healthcare is capped for12 months at $5,000 andmiscellaneous expenses, includingemergency travel, temporaryaccommodation and telephonecalls are provided up to $15,000.The US also allocates up to$25,000 for funeral expenses.

Following the deaths of 12 people, including at leastthree tourists, in Peru at the beginning of March in aroad traffic accident, the safety of the country’stransport and roads is being called into question.Despite a change in the law last month that made ‘bus-trucks’ illegal, these vehicles are still being used to transporttourists between towns and villages on mountain roadsthat frequently have sheer drops and blind bends.Despite the precarious driving conditions, driversreportedly career around corners too quickly andbusses are forced to pass each other in dangeroussituations. This latest accident happened when a busswerved to avoid a parked water truck, subsequentlycrashing head-on into another bus on a highway in thecountry’s southern Andes. Among the dead were anAmerican and a Bolivian tourist. Another tourist, whosenationality has yet to be revealed, was also killed in thecrash, as was a traffic policeman deployed to redirecttraffic at the scene, who was knocked over by a passingvehicle. Forty-nine other people were injured in thebus accident, including another American, a Portugueseman, two Chileans and a British woman.The ‘truck-bus’ vehicles that were banned fromroadways last month by Peru’s TransportationMinistry still appear to be in use, despite the ban. Infact, an accident a few days prior to this latest crashinvolved another of these such vehicles, when a busskidded off an unpaved road and plunged 670 feetinto a gorge, killing 26 people.Even legal busses are poorly maintained, many being10 to 15 years old and fairly run-down, leading toquestions as to whether yet more needs to be doneto improve the condition of public transport in Peru.With so many tourists in this part of the world, thereis more than just local pressure for further changes totransportation laws. Overall, 557 people were killed ininter-provincial bus accidents in Peru between July2004 and June 2005, according to the Center forInvestigation of Overland Transport.

Peru tragedy: safetyquestioned

www.itij.co.uk International Travel Insurance Journal

NEWS 5

No insurance forDelta passengersFollowing threats from Delta Air Lines pilots andComair flight attendants to strike if the companiesimpose major salary cuts, worried insuranceproviders have stopped selling policies protectingthe airline’s customers from strike action.Global Travel Shield, the insurance company linked toDelta’s website, has stopped offering insurance thatwould cover a strike, according to representatives. Itreiterated that policies from this point on would notcover expenses related to strike action, as thisscenario is no longer considered unlikely.Meanwhile, a representative of Travel InsuredInternational, based in East Hartford, Connecticut inthe US, said the company could not guarantee thatpolicies purchased would be reimbursed in theevent of a strike by Delta employees. He addedthat the insurer might have grounds to refuse claimsbased on Delta pilots’ public threats to strike since28 February if the airline succeeds in voiding itscontracts. “I cannot guarantee that Delta would becovered at this point,” the salesman said.Delta is seeking $305 million in annual cuts to pilotpay and benefits, while the pilots’ union is only willingto accept $140 million in annual reductions. Comairis aiming to reduce its flight attendants pay from$28,000 to either $18,000 or $21,000 (the figure isdisputed by the attendants’ union and the company),in order to make annual cuts of $8.9 million.

A new insurance programme, Chemebi, has been setup in Georgia and aims to attract middle-incomefamilies to a variety of services for individual customers.BCI, the programme’s initiator, is a wholly ownedinsurance subsidiary of the Bank of Georgia and everycustomer who purchases a Chemebi insurance policywill receive a Bank of Georgia Visa card to which theinsurance company will be able to transfer money.According to Ramaz Kukuladze, deputy directorgeneral of the Bank of Georgia: “Chemebi is aninnovative project which successfully integratesinsurance and bank services for individual customers.”The new programme hopes to break the stereotypethat insurance is not a luxury and thus increase itspopularity. The insurance project offers different typesof coverage including car, health, property, life andtravel insurance and, while trying to make theprocedure of obtaining insurance and claims paymentas easy as possible, it has also tried to set lower thanaverage prices for certain policies.

Integrated insurancein Georgia

Travel warningfor UKuninsuredOver the past 12 months, more thanthree million people in the UK claim tohave travelled overseas on holidaywithout insurance, according toresearch conducted by Sainsbury’sBank. That represents 13 per cent of allthose who holidayed abroad last year.Karen Preston, travel insurancemanager for the bank, said: “Travelinsurance is essential for anyone goingabroad, even if they are just planning along weekend. Last year, we estimatedthat there could have been around241,000 travel insurance claims for medical orhospital care alone.”The largest number of travellers going on holidaywithout insurance seem to be the under 24saccording to the bank, so it is urging this group notto forget travel insurance and to make sure its ontheir holiday ‘to-do’ list along with sun lotion.

Deadly blast for India’s top tourism townIndian officials areputting a braveface on after thebomb blast that hitVaranasi on 7March. The littleknown militantoutfit Lashkar-e-Qahab hasclaimedresponsibility forthe three powerfulbombs that rippedthrough the holycity. A man, calling

himself Abdulah Jahar, said he was the spokesmanfor Lashkar-E-Kahar, which translates to Army ofDestroyers. “If atrocities in Kashmir don’t stop, theIndian people won’t be able to sleep in peace,” hewarned, suggesting there would be more attacks.On average, 500,000 tourists visit Varanasi everyyear, of which nearly 100,000 are foreign,according to available figures from tour operators;and after the Taj Mahal, Varanasi is the favouritedestination of foreign tourists. It is a holy city –most famous for its ghats on the river Ganges –and is steeped in Hindu mythology. With scripturesdescribing it as home to millions of shrines anddeities, it has drawn some interesting visitors in itstime, including stars such as The Beatles, andauthor Jack Kerouac.

According to officials, the bomb blast struck as thetourist season, which runs from October toMarch, was tapering off, insinuating that the blasts’effect would only be temporary.Subhash Goyal, Indian Association of TourOperators (IATO) president, commented: “Afterthe Delhi blasts, things were back to normal onthe second day. Terrorism has become a part oflife. Tourism would definitely be affected, but onlyfor a few days perhaps.”According to one regional tourism officer, foreigntourists have not been fleeing Varanasi, but havebecome extra vigilant and have been in regularcontact with tourism department officials regardingthe blasts. The total number of fatalities has beenconfirmed as 20.

International Travel Insurance Journal www.itij.co.uk

NEWS6

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Ask the captainIs there something about air travel that you’reunsure about? Well now you can send CaptainMeryl Getline an email and she very wellanswer it in her USA Today column.By emailing her your question, nameand town, you are agreeing to haveyour question shared.An example of a recent questionanswered: I’ve tried to understandthe signage on the runway andtaxiways, but cannot figure out thecode. Can you give us a few examplesof what the abbreviations mean?Captain Getline gave a full andcomprehensive answer with links torelevant sources and examples.As well as her pilot duties, Meryl Getlinehas published an award-winningbook, The World at MyFeet, and is a publicspeaker.

Sick of stormsStrong winds caused a pilot to abort a landingrecently in the US, forcing a touch down in anearby airport. Three passengers, whobecame sick as a result of the turbulence,were taken to hospital upon landing.Northwest Flight 230 was heading to RonaldReagan Washington National Airport fromDetroit, but ended up at Washington DullesInternational Airport in suburban Virginia. TheNational Weather Service had a wind advisoryin effect for the Washington area, with gusts ofup to 40mph forecast throughout the day.

EVA Air potty overHello Kitty

Taiwan’s Eva Air and Sanrio have teamed up tocreate a Hello Kitty jet. EVA has painted an Airbus330-200 nose-to-tail with super-sized characters

from the charming cartoon world ofHello Kitty. The cabin walls are

painted with Hello Kitty andeven the flight attendantswear Hello Kitty ribbonsand aprons. Passengersbooked on the jet will

receive pink boarding passesand luggage tags, and whilst

onboard they will be servedHello Kitty meals and havethe chance to purchaseduty-free Hello Kittymerchandise – Hello Kitty-

mad passengerswill be purringwith pleasure!

UStiA reportThe US Travel InsuranceAssociation (UStiA) is a fairlynew organisation and theirsecond ever conference washeld at the Sanibel HarbourResort & Spa in Fort MyersFlorida between 26 and 28February 2006. UK insuranceconsultant Julie Remmingtonreports on what was on the agenda and what thepressing issues are for the US market

Just over a 100 people gathered at the SanibelHarbour Resort for the welcome function, wheredelegates were treated to a constant supply ofalcohol and tasteful food. From a personalperspective, it was nice to meet new people andunderstand what their market was doing.It became clear that the US market has manysimilarities with the UK and it was a case of déjà vuas many of the issues are the same, except that theUS market is not as developed. A major difference isthe start time of the conference, as the sessionsstarted punctually at 8.15 a.m. on day one and 8.30a.m. on day two. The attendees were either hardyor disciplined, as there was a full house for thewelcome address by UStiA president Jon Ansell.The topics for the conference followed three mainthemes – disasters, terrorism, and pandemics. Ineach, the speakers gave a different perspective ofthe issue – whether it was forecasting the potentialproblems or responding to events that have alreadyoccurred. These sessions were followed by a panelsession, where industry personnel would join thespeakers for a debate. On the first morning, the keynote speaker DrThomas Holzheu from Swiss Re gave an overviewof the market’s perspective, with emphasis on the2005 catastrophe season. This was followed byresearch meteorologist Stanley B Godenberg, whogave an interesting account of his work in the

hurricane field and left us with Stan’s four Ps ofpreparedness for hurricanes: Protection; ProvisionPlans; Prediction; and finally PRAY.Michael W Lowder from the Federal EmergencyManagement Agency (FEMA) Response Divisionwas next and he explained how the authorities hadto deal with two major hurricanes in 30 days whenKatrina and Rita struck. The panel session thatfollowed concluded that Americans have becomecomplacent when it comes to disasters, as thegeneral attitude is ‘it’s always someone else’sproblem’ and ‘everything will work out OK’.However, from an assistance company’sperspective, it was agreed that one of the biggestissues was not knowing how many travellers at agiven time might be in an affected resort. JulieDavidson from Apple Vacations wanted to push thepurchase of travel insurance as a necessity, ratherthan as an add-on luxury in the way that it ispossibly conceived today.Day one ended after this interesting debate withpeople either retiring to the pool or taking part inthe golf competition.Day two opened with Dr Peter E Tarlow fromTourism & More, who is an expert specialising in theimpact of crime and terrorism on the touristindustry. Peter spoke at last year’s conference and itwas easy to see why he had been asked back as notonly is he a clear expert in his field, but anentertaining speaker. Peter gave a clear insight intothe makeup of a terrorist and where in his personal

continued on p.8

Despite a 6.8 per cent increase in revenues to£324.1 million ($557.1 million) for Benfield

Group Ltd in 2005, pre-tax profits fell to £53.8million ($92.5 million) from £57.9 million ($110.9million) in 2004 due to the company’s increasedcosts.

UK insurer Royal & SunAlliance Group PLC hasbeaten expectations with more-than-doubled

yearly profit, boosted by asset sales, reservereleases and investment gains.

Life insurer AXA Asia Pacific Holdings Ltd posteda better-than-expected 18 per cent rise in

annual profit on higher fee income and made itsbiggest acquisition, since listing in 1996, to expandfurther in Asia. It bought the MLC Hong Kong andIndonesian life insurance businesses of NationalAustralia Bank Ltd for AU$575 million ($4265million).

National Atlantic Holdings Corporation, aprovider of specialised property-casualty

insurance products and related insurance servicesin New Jersey, announced that its subsidiary, TheProformance Insurance Company, will assumerenewal obligations for a block of HanoverInsurance Group’s personal lines policies. Thetransfer will involve approximately 16,000 policies.

German insurance group Allianz is planning tocut 700 sales jobs as part of a major

restructure in its homeland. Chief executive GerardRupprecht ruled out any forced redundancies during2006.

While the overall number of naturalcatastrophes during 2005 was in line with

historical trends, the insured losses caused bynatural disasters were the highest ever recorded,according to research by Munich Reinsurance Co,and the hurricane season was the most active inhistory.

QBE Insurance Group Ltd, the second-biggestunderwriter in the Lloyd’s of London market,

posted a 27 per cent rise in annual profit, helpedby acquisitions, and forecast 2006 profit growthabove 10 per cent.

White Rock, the protected cell and rent-a-captive management unit of Aon Corp., has

set up its first segregated account company inBermuda. White Rock Insurance (SAC) currentlyhas six cells.

PXRE Group Ltd, which reported a $698.2-million loss for 2005, said it could lose more

than 75 per cent of its reinsurance clients becauseof ratings downgrades out of the A range and areduction in capital.

French mutual insurer Groupama grew its

turnover by 4.8 per cent in 2005, to €13.5billion ($16.2 billion), with a strong progression in itsinternational insurance activities, up 7.4 per cent.

Berkshire Hathaway Inc. officials have concludedthat its reinsurance units should now write

mega-cat policies only at prices far higher thanprevailed last year. According to BerkshireChairman Warren Buffett, such business should bewritten only with an aggregate exposure that wouldnot cause distress if shifts in some importantvariable produce far more costly storms in the nearfuture.

UK insurer Aviva PLC posted a 39 per centincrease in 2005 net profit and signalled a

willingness to make further acquisitions, perhaps inthe US. Full-year net profit for Aviva was said tocome to £1.77 billion ($3.09 billion), comparedwith £1.28 billion in 2004.

AXA SA said strong sales of life and savingsproducts in the US and of non-life policies in

Canada, Turkey, Singapore and Hong Kongcontributed to a 12 per cent rise in 2005 netprofit.

www.itij.co.uk International Travel Insurance Journal

INSURANCEMATTERS 7

Buyers in favour ofbroker fee disclosureAccording to a new survey of UK insurance buyers,brokers should be forced to disclose their commissionearnings from arranging cover for clients. The survey,conducted by insurance companies on behalf of Londonmarket insurers, found that over half of the 500insurance buyers questioned said they were in favour ofmandatory disclosure of brokers’ commissions.A statement issued jointly by the International UnderwritingAssociation (IUA) and Lloyd’s Market Association (LMA)explained how the survey revealed a high level of ignoranceamong many of the country’s corporate insurance buyersnot just about how much brokers actually take incommissions but that they actually take a commission at all.Over half of buyers polled seriously underestimated thetotal level of commission their brokers earn: an averagebroker commission level of just under 10 per cent of theoverall premium paid for their main commercial combinedinsurance policy was estimated by buyers, where, in actualfact, the typical rate is between 17.5 and 20 per cent.Regulatory probes in the US last year brought the sizeof commissions and issues of transparency to the forein the insurance world. When it was revealed thatsome US insurers had rigged bids for cover, a numberof brokers responded by abandoning the practice ofaccepting so-called contingent commissions paid tothem for steering business towards certain insurers.However, contingent commissions have not beenoutlawed in the US, UK or Europe, and some of thesmaller UK buyers recently polled stated that theywere unaware of the existence of such commissions.Only 20 per cent of buyers polled realized brokersare paid commissions over and above the percentagethey charge their clients, said the IUA and LMA.Under current UK regulatory rules, brokers need onlyto disclose commissions paid to them by insurers ifasked to do so by clients. The UK’s financialwatchdog, the Financial Services Authority (FSA), has,however, warned brokers that it could force them todisclose their fees unless they improve how theymanage potential conflicts of interest.

An end to theinsurance droughtThe United Nations World Food Programme (WFP)has given AXA Re the first UN humanitarianemergency insurance contract. The aim of the policyis to get aid to victims of drought before the worst ofa crisis takes hold. The WFP explained that by the time famines gainmedia attention, needless lives have been lost and anyresources given have to work harder to rectify thesituation. Under this new contract, a premium is paid,and if the rain doesn’t fall, the insurer pays out.In a pilot project for this year’s growing season inEthiopia, the UN will pay a $930,000 ( 530,000)premium, and if precipitation drops below a certainamount, AXA will pay out $7.1 million. “TheEtheopian drought insurance project is an innovativeway of approaching risk management in a verychallenging setting,” commented James Morris, headof the WFP.In the long term, this new arrangement shouldprovide a more efficient use of donor funds for theWFP, as money spent sooner is more effective in crisissituations. For AXA, one of six insurers who bid forthe contract, the hedge offers an inroad into apotential new sub-Saharan African market,complementing its existing weather business inEurope, the US and Asia. The company is also talkingwith other governments in various countries that mayalso be able to afford their own such policies.

Greenberg receivesaccounting reportFormer American International Group (AIG) chiefexecutive Maurice R. Greenberg, pictured, and hislawyers have received an internal report thatuncovered accounting fraud at the US insurer. MrGreenberg had requested the accounting report toaid his defense against civil charges of fraud brought byNew York Attorney General Eliot Spitzer last May.AIG gave Greenberg the report on 6 March, but it isnot know whether it was the full version. A furtherhearing with New York State Supreme Court Justiceon 13 March ruled that the full report should bereleased.Opponents ofthe release ofthe reportbelieved such anaction could bedetrimental tothe US JusticeDepartment’scase against oneformer AIGexecutive andthree formerBerkshireHathaway Inc. executives. Former AIG head ofreinsurance Christian Milton, along with the threeformer officers of Berkshire Hathaway’s reinsuranceunit are currently facing criminal charges in Virginia fortheir part in an alleged $500-million accounting frauddesigned to pump up AIG’s reserves.

NEWSWIRE

Settlements promptregulatory changeThe recent investigations into bid rigging and pricefixing at some of the US’s largest insurers haveresulted in a more open and competitive insurancemarket and calls from regulators to ban contingentcommissions outright. Meanwhile, concerns that theregulatory settlements resulting from the investigationswould drive up the price of policies appearunfounded.The recent settlements with Marsh & McLennan(MMC) and American International Group (AIG) sawclients and investors hurt by the dubious insurancepractices awarded from record compensationamounts: federal and state regulators extracted $850million from MMC and $1.64 billion from AIG. Moreimportantly, say some experts, the US insurancemarket has already become more open and morecompetitive. “There’s an awareness that full disclosurethat informs and educates the consumer is thebusiness model for the insurance community,” saidMichael T. McRaith, director of the Illinois Division ofInsurance. Also commenting on the better disclosure of policycosts and associated fees, president of the PropertyCasualty Insurers Association of America Ernst Csiszarstated: “When clients have that kind of information, itopens it up to competition,” because they cancomparison shop. In the industry, companies will haveto be more mindful about the profitability of theircustomers, he said: “In the past, companies could takeadvantage of … spreading the cost of handling aspecific client over others. Now, you have to bemuch more aware of whether you’re getting marginsfrom a particular client … You have to look moreclosely at the quality of the business you take on.” Moreover, increased competition in the marketplacehas meant that the price of policies has not beendriven up. The big insurers at the centre of thescandal are scrambling to regain their footing. ForNew York-based MMC, the loss of $840 million peryear in revenue from contingent commissions, ormarketing service agreements, as they are oftenknown, has forced a painful restructuring. Thecompany has had to refinance its debt, sharply cutcosts and lay off some 5,000 staff. Many of thecompany’s top salespeople have also jumped ship orhave started their own ventures.

UStiA report continued from p.6

Swiss Reinsurance Co said net profit for 2005 fell41 per cent as claims related to last year’s

natural catastrophes and a surprisingly largeincrease in its liability reserve – about one billionSwiss francs – hurt the reinsurer’s bottom line.

While North America only experienced 13.6per cent of the total number of natural

catastrophes that took place throughout the worldin 2005, it suffered 87.1 per cent of the worldwidetotal insured losses of $83.40 billion.

S&P’s confidence in the reserve adequacy of USinsurers increased modestly for accident years

2003 and 2004 but, according to the ratingsagency, insurers’ ability to attain adequate reservesfor accident years 2001 and prior remains aproblem.

Wellington Underwriting plc said it expects itspre-tax loss for 2005 will be between £25

million and £30 million ($43.0 million and $51.6million), compared with previous estimates of about£48 million ($82.5 million).

Swiss Re shareholders rubberstamped a $7.5-billion capital raising exercise in February, in

order to finance the group’s acquisition of thereinsurance units from General Electric Co. It plansto raise up to $5.5 billion in shares and mandatoryconvertibles and $2.0 billion in hybrid debt tofinance the deal, expected to close by the middleof the year.

Last year’s spate of hurricanes that battered thesoutheastern United States spawned booming

growth in the catastrophe bond market. Accordingto a study by Guy Carpenter & Co Inc., thecatastrophe bond market recorded total issuance of$1.99 billion in 2005, a 74 per cent increase overthe amount issued in 2004.

French insurer AXA S.A. reported a 24 per centrise in 2005 underlying profit, which beat

market forecasts and sent its shares to their highestlevel in more than four years.

Aviva plc has been granted a licence by theFederal Service of Insurance Supervision in

Russia, which will allow Aviva to offer a range oflong-term savings and protection products in theRussian market.

Swiss Reinsurance Co. posted a net income of1.45 billion Swiss francs ($1.10 billion) for 2005,

down 41 per cent from 2004. This drop in netincome has been linked to the natural catastropheclaims of about 1.1 billion Swiss francs ($836.6million).

Quanta Capital Holdings Ltd said it is exploringstrategic alternatives – including a possible sale

– after it was downgraded to B++ from A- by AMBest Co. Inc., due largely to hurricane losses.

S&P is maintaining its stable outlook on the UK’snon-life insurance industry. Examining the UK

non-life industry, S&P reported stable economicgrowth and low inflation with very strong andimproving insurance regulation, as well as animproving enterprise risk management.

Fortis is achieving sustainable, controlled growthdue to increased commercial activity and

continued professional discipline. The companylogged a 45 per cent increase in 2005 net profit

before results on divestments to €3,498 millionfrom €2,410 million.

Cigna Corporation reported receiving an adverseruling from a London arbitration panel

concerning a dispute over a retrocessionalreinsurance arrangement related to a portion of itsrunoff workers’ compensation reinsurance businesswritten in the London market. The ruling resulted ina $14-million after-tax charge.

Jardine Lloyd Thompson Group plc, in reporting a23.3 per cent drop in pre-tax profits for 2005 to

£73.8 million ($126.9 million), said it isrestructuring some operations and mulling otherchanges as it adjusts to a tougher operatingenvironment.

NEWSWIREOpinions differ overbroker roleAt the recent World Insurance Forum, in Bermuda,opinion was clearly split over the role that brokersshould assume in the creation of capacity ininsurance markets. The amount of investment thatbrokers and insurers should or should not be ableto make in each other was a hot topic and provided

much food forthought.This issue has beenespecially prominentgiven the campaign byEliot Spitzer, the NewYork attorney general,to make the insuranceindustry moretransparent and rid itof conflicting interests.Consequently, somemajor brokers havesince distancedthemselves fromthose parts of theiroperations that havehelped launch newinsurance projects.Some Forum

attendees, such as conference speaker Nikolaus vonBomhard (pictured), chairman of German reinsurerMunich Re, believe that it is wrong for brokers toset up insurers or reinsurers and it is equallyunacceptable for insurance carriers to own brokers.A fitting destination for such a dispute, Bermuda ishome to a market where brokers have played animportant role in the creation of new capacity inrecent times.Forum panelist Michael Butt, chairman of AxisCapital, who has, in the past, created twocompanies with the help of brokers, believes firmlyin the role of intermediaries when it comes tocreating capacity: “It’s part of the broker’s role tocreate and find stable markets and if there’s avacuum it’s good to fill it and then step back,” he tolddelegates. This method of a short to medium-termrole for the intermediary, he believes, is pivotal.Brian Storms, new Marsh chairman, agrees. It’s nota simple capacity issue, he says, rather: “There aresome highly-segmented niche markets that are notefficiently served by any other markets. It can bevery effective for clients if it does not conflict.”Marsh is one of the most active brokers in thecreation of new companies, especially in Bermuda.Furthermore, Graham Chilton of reinsurancebroker Benfield added to this argument, stronglydefending brokers’ role in unearthing capacity andfinding the capital to transfer the risk. Transparency,he commented, is the key. He also went on tohighlight the essential role that brokers had played inmaking the booming Bermuda market what it istoday. “We’ve done it in areas where contingentcapital was needed. Whether it’s capital markets,hedge funds, Bermuda or Europe, our job shouldnot be to shy away from the challenge.”

International Travel Insurance Journal www.itij.co.uk

INSURANCEMATTERS8

Allianz first forChinaGerman insurer Allianz has opened its first joint lifeand non-life sales centre in China. Located inShenzhen, one of the country’s most dynamic anddeveloped cities, the new centre offers a one-stopshopping experience for the Guandong province.Catering for a range of insurance needs, includingpersonal, health and commercial, the centre’s staffoffer financial planning and policy advice. The centre isbased in the Anlian Tower and was opened with aceremony for the guests of honour. Allianz received itslicense to operate in Guangdong in 2005, but this is itsfirst joint sales centre for both areas of insurancebusiness. China is a key strategic growth market for many globalinsurers. Allianz is one of several international insurerswho are currently tapping into the growing successand optimism of this financial hub.

opinion the next attacks were possible. Thisincluded, worryingly for the travel industry, cruiseships, which Peter advised are hotels that cannot beprotected. Peter also highlighted Iran as a possiblethreat for the future.Tim White from the Anti-Terrorist branch of NewScotland Yard gave a UK perspective on the issueand pointed out how quick the UK was to get backto normal after the 7 July bombings. Tim alsoadvised that there are more people currently incustody for terrorist activity in the UK than at anytime in the past and 2006 offers even greaterchallenges for the security service.

The closing subject was pandemics and how thesecan be forecast and responded to, and impact theywould have on the US travel market. Exactly when apandemic will strike is not known, but the consensusseemed to be that it is only a matter of time before itwill affect the tourism industry worldwide.The conference was concluded with a Bon Voyagecocktail reception and dinner and, while theweather in Fort Myers was not at its best, theconference was an interesting combination of livelydebates and discussions. It also proved that nomatter where in the world travel insurance isunderwritten and sold, the issues are similar.

Rumour of Zurich acquisitionShares in Zurich Financial Services surged on 17March, when the Wall Street Journal reported theSwiss insurer was in the early stages of exploring apossible tie-up with St Paul Travelers Cos. of theUS. The deal would be one of the biggest Europeanacquisitions ever by an American company.Although such a merger would face serious hurdlesand take months to complete, it could help thecompanies spread their risk more evenly around theglobe, according to industry experts. Also, as the USand Europe experience boom-and-bust cycles atslightly different times, it would be an advantage fora company to have business in both continents asrevenue streams would be smoother. Furthermore,the overlap in the US business of the twocompanies offers the potential to cut costs. Others, however, have cast doubt on thespeculation. Swiss insurance industry analysts saidthey doubted whether Zurich’s management wouldwelcome an approach from a smaller rival. Zurichhas a $33.6-billion sock market value, compared toSt Paul’s $29.9 billion. Total assets at Zurichamounted to around $340 billion at the end of

2005 – three times that of St Paul’s $113 billion.Since former chief executive Rolf Hueppi’saggressive expansion strategy, which left Zurichlagging in the industry – with spiraling costs andpoor underwriting leading to the posting of a $3.43billion net loss in 2002 – current CEO Jim Schirohas rehabilitated the company and its stock price hasgrown strongly this year. Shares are, however, stillless than half their value in January 1999.“I can’t see Zurich agreeing to a merger… as it regards its shares as still beingundervalued and believes that there’splenty of work still to be done,” saidChris Hitchings of New York-basedinvestment bank Keefe, Bruyette &Woods. St Paul has denied rumours of themerger talks, but its shares went up 1.7per cent following the speculation.Combining it operations with Zurichwould create a potential rival in size toAIG, with combined annual revenue of$90 billion.

www.itij.co.uk International Travel Insurance Journal

INSURANCEMATTERS 9

NAIC mullsregulatory changesThe National Association of Insurance Commissionersin the US is committed to a deadline for deciding onregulatory changes. By the end of this year, theAssociation plans to have decided whether to changethe current reinsurance system, including rulespertaining to collateral requirements for so-called‘non-authorised’ reinsurers.Matters came to a head at the NAIC’s recentmeeting, where, after years of discussions around theissue of regulatory changes, Association presidentAlessandro Iuppa said: “It’s time for us to come tosome decision regarding collateral.” A white paper onthe history of these discussions has now been formallyadopted by the NAIC that outlines some of thearguments for and against change.At the meeting, the NAIC challenged its reinsurancetaskforce to develop real alternatives to the currentregulatory framework and to identify and consider

variations among different states’reinsurance-related laws. Non-authorised reinsurers –predominantly non-UScompanies – have thus farsought relief from regulationthrough a requirement that theypost 100 per cent collateral forrisks written in the US, but thiscould change. However, manyUS ceding companies andguaranty funds oppose change,fearing it may diminish theirsecurity, especially in light of

concerns over varying accounting standards and theenforceability of judgments internationally.There is no telling what the outcome of this year’sdiscussions will be; it might be that the current regimeis considered adequate. But, one taskforce chairpersondid express the opinion that it is highly probable thatsome changes to the system will come about.

Holding out for government compensationWith the world holding itsbreath over the humanthreat of avian flu, insurershave been speculating as towhat farmers can expect toreceive in the way ofcompensation for loss ofstock or profit – be it fromtheir insurance policy ortheir local government. Infact, with many insurersreluctant to pick up the bill,government schemes arebeing looked to all overEurope as the prime sourceof recompense.In France, where the entireturkey flock of one farm wasculled after H5N1 was discovered, insurers wouldleave compensation to the government in the case oflivestock deaths or mandatory slaughter. Groupama,the French insurer with the largest amount of farmingcustomers, explained that under laws brought induring the ‘mad cow’ scare of the 1990s, governmentwould cover the cost of culling all livestock. This costincludes the replacement of stock, damagedequipment and veterinary bills for disinfections. Outside of these parameters, insurance does notcover the cost of building shelters to comply withgovernment orders to bring poultry indoors, nor doesit cover loss of revenue due to a health scare causingdiminished demand.In the US, the Insurance Information Institute (III), atrade body, said that insurance for stock only tendedto be purchased for especially valuable animals. If apoultry cull was ordered, Robert Hartwig, chiefeconomist for the III, expects the federal governmentwould pick up the tab.And in the UK, the story is pretty much the same.According to the relevant government department,the state would compensate farms for healthy birds

that needed to be culled, but not diseased ones.Meanwhile, insurers have predominantly stoppedoffering policies providing additional payments for lostlivestock. “The underwriters are taking a pauseunderwriting new risks while they review the currentsituation,” Bill White, a broker specializing in livestockrisks at Heath Lambert told the Financial Times.Also, NFU Mutual, which insurers around two-thirdsof the UK’s farmers said it did not provide coveragainst avian flu, and Lloyd’s insurer Wellingtonexplained that new livestock policies or cover renewalhad specifically excluded avian flu since 1 January. Aonalso has said that it is unlikely farmers would be able toclaim for loss of business due to H5N1, as the virusspread is regarded as an ‘extreme outside of thenorm’ event. Although farmers tend to cover their stock for lossdue to fire, disease is usually tackled by theimplementation of preventative measures rather thantaking out insurance. Even if farmers decide it mightjust be a good time to take out some extra cover,they will probably not be able to find an insurer willingto take the risk.

Kicking up a stormInsurers are handling tens of thousands of claimsresulting from a barrage of tornadoes that poundedseveral states across the US Midwest in mid March.The storms were blamed for the deaths of severalpeople, as well as extensive property damage, afterwinds of up to 200 miles per hour ravaged the area.A total of more than 100 storms swept acrossArkansas, Illinois, Kansas, Missouri and Oklahoma,swiping roofs from homes, uprooting trees, andleaving towns without electricity. The resultantdamage has left insurers facing a vast amount ofclaims. State Farm Insurance Co. has received around20,000 automobile claims for Missouri, 5,500 forKansas, 4,000 for Arkansas and 780 for Illinois, as wellas a total of almost 20,000 homeowners claims forthose states.American Family Insurance and Allstate Insurance Co.have also collectively received over 14,000automobile and property claims. A state of emergencywas declared in Illinois and Missouri. “While the tornadoeswere only on theground a few minutes,the road to recoverywill be a long one,” saidIllinois Governor RodR. Blagojevich. TheProperty ClaimsServices unit of NewJersey-based InsuranceServices Offices Inc.declared the storms acatastrophe, which theydefine as an eventwithin a particular territory causing $25 million ormore in insured property losses.The bulk of the insured damage will be picked up bypersonal lines insurers, although some commercialclaims are expected. The University of Kansas, forexample, suffered damage to buildings estimated tocost at least $6 million.

International Travel Insurance Journal www.itij.co.uk

INSURANCEMATTERS10

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NEWSWIREConsolidation aheadfor Swiss marketLeading insurers in Switzerland believe the localinsurance market is set to see mountingconsolidation. They believe that new capital rulesfor insurers will force smaller firms to either sell outor merge as they struggle to keep abreast of thecoming changes and are exposed to new risks.The new regime in Switzerland mirrors theworldwide Basel II capital requirements for banks,but it will not be fully implemented for years.However, by 2010, insurers will have to take intoaccount capital market risks when setting aside

solvency capital, and not just underwriting risks.They have until this time to build up enough capitalto comply with the rules. The inspiration for the changes comes from thestock market collapse of 2001, but the proposedregime is causing concern. It is believed that smallerinsurers may not have sophisticated enough systemsto gauge market risks, such as sudden changes ininterest rates or swings in equity prices, and mayalso find they need more capital to comply with thenew guidelines.In the meantime, leading European insurers, such asZurich Financial Services and AXA SA, have saidthey will not shun buying rivals or smaller insurersthat are forced to sell out. “There will beconsolidation in the Swiss market,” said Peter Kandlof the Swiss Insurance Association. “Whether that isentirely due to the new capital rules is anotherquestion, but they might work as a catalyst.”Others don’t think that consolidation will be notable.Hans-Juergen Wolter, chief risk officer at Swiss Life,says: “I don’t think there will be lively mergers andacquisitions activity, but I could imagine thatindividual companies will have to give up their lifebusiness, given that it is extremely sensitive tointerest rates.”The country’s insurance watchdog is also confidentin smaller insurer’s ability to adapt to the impendingchanges. A spokesperson has told how theseinsurers have shown themselves able to adopt thestandard risk models developed by the regulatorquickly and at little cost.It’s not just the smaller companies that are feelingthe heat, however. Larger insurers are beingpressured to rethink investment and underwritingstrategies in line with the new regime. Swissinsurers must also partake in the Swiss Solvency Testfrom this year, which aims to strengthen the marketthrough competition by imposing capitalrequirements on insurers. And, in addition, theEuropean Union begins the enactment of SolvencyII in 2009.If smaller insurers cannot adapt, selling up or sellingoff a portion of their business may be an easy wayout if faced with capital shortages. However, if theSwiss insurance watchdog is right, these companiesmay be hardier than the wider industry believes.

Hanover Re is contributing about $500 millionin capital to form a new North American

primary insurer – Praetorian Financial Group Inc. –focusing on speciality business, to take advantageof favourable market conditions. It will write selectspeciality business currently managed by its US-based property and casualty insurer, ClarendonInsurance.

Since the introduction of the Allianz AgencySystem in 2004 in Indonesia, this business

model has proved a success in its first year. In2005 more than 16,000 new policies were soldand the company reported an ANP of 83 billionIndonesia rupiahs.

Aon Re Global has announced that it hasproduced research on the impact of earnings

volatility on shareholder value for insurers andreinsurers. The hurricane season provided aninteresting opportunity to observe the investorresponse to the related earnings and capitalvolatility, according to the study. It reported arelative intolerance of catastrophe risk fromshareholders.

Robert Horrocks has stepped down as chiefinvestment officer of the Chinese fund

management joint venture of Prudential, the USinsurer, amid concerns over the investmentperformance of the company’s Chinese mutualfund.

Munich Reinsurance Co. posted a profit of

€2.74 billion ($3.25 billion) for 2005, up45.4 per cent from a restated profit for 2004, butits American Re Corp. unit posted a $1.56-billionnet loss, largely because of a $1.4-billion reserveboost in the second quarter of 2005. Munich Resaid that its profit for 2005 was boosted by an

investment result of €10.82 billion ($12.81billion), up 34.5 per cent from the previous year.

Beazley Group plc reported a profit of £16.1million ($27.7 million) for 2005, down 54.5

per cent from a year previously. Beazley said theprofits were affected by hurricane losses of £60million ($103.1 million).

Allianz produced profitable growth for the fiscalyear 2005. Life insurance and asset

management continued to be the growth drivers.Total revenues of Allianz were up by 4.2 per cent

and exceeded the threshold of €100 billion(€100.9 billion). Operating profit increased by13.2 per cent to €7.7 billion. Net income rose by30.7 per cent to €4.4 billion and was driven bythe operating profit.

Additional sues have been placed upon theMarsh & McLennan bid-rigging claim. Florida

Attorney General Charlie Crist filed a civilcomplaint against the company, saying it illegallymanipulated insurance markets to obtain impropercommissions and engaged in bid rigging.

Reinsurer Converium posted a better-than-expected net profit of $68.7 million in 2005,

boosting its shares, as gains from early UScontract settlements helped outweigh heavyhurricane claims.

Brit Insurance Holdings plc said its profit slipped46 per cent due to heavy claims from US

hurricanes and it was cutting its dividend target toexploit good growth opportunities.

London-based Hiscox plc has opened a US-based underwriting operation offering coverage

for small and midsized US professional servicesbusinesses outside the Fortune 1000, says thecompany.

Amlin plc posted a pre-tax profit of £182.7million ($314.0 million) for 2005, up 41.7 per

cent from the previous year. The London-basedinsurer, which operates a multiline Lloyd’s ofLondon syndicate and a Bermuda-based reinsurer,said it posted a combined ratio of 82 per cent for

Insurance boomingin AsiaA study by Lloyd’sof London haspredicted asignificant rise indemand forspeciality classesof insurancebusiness in Asiaover the next twoyears, with theuse of insurancebrokers in theregion alsoincreasing.London-basedconsulting firmORCInternationalquizzed morethan 300 insurance companies, brokers and buyersfrom Hong Kong, Indonesia, Malaysia, thePhilippines, Singapore, South Korea, Taiwan,Thailand and Vietnam on behalf of Lloyd’s Asia. Theresults revealed that premiums for directors andofficers insurance in the region are expected togrow to about $185 million by 2007, from anestimated $150 million in 2004, with about 95 percent of the growth coming from Hong Kong,Singapore, South Korea and Taiwan.The expected growth is likely to be pushed by thegrowing power of legal challenges and regulators inthe region, the study, entitled New Openings:Quantifying Opportunities in Asia, added.The use of insurance brokers in Asia is expected torise in the next two years, with 62 per cent ofinsurance buyers stating that they used an insurancebroker in 2004, although only half placed theirinsurance programmes via brokers. This figure isexpected to rise significantly, according to the study.

Fitch predicts FDIhike in IndiaGlobal ratings agency Fitch has said in a newreport that it expects several new players toenter the rapidly growing Indian insurancemarket in the next few years. If the foreigndirect investment (FDI) cap is raised to 49 percent from its current level of 26 per cent, thenext one to three years could see many newforeign insurers entering this evolving market.At the present time, most private insurancecompanies in India are joint venturesbetween Indian and foreign partners, with thelatter’s share of the company capped at 26per cent. Despite already strong growth inthe country and improved penetrationlevels, the market in India is still quite small,but would be helped dramatically by higherFDI levels. This would also allow a freshinfusion of capital into the insurance sector,providing even more scope for expansion.

India’s insurance industry has undergone majorstructural changes in recent times and nowaccounts for 10-15 per cent of the country’s totalfinancial sector assets. Total gross premiumsamounted to Rs 95,140 crore in 2005-2005($21.2 billion), split roughly 60:40 between life andnon-life business respectively.Total premiums were equivalent to 3.1 per cent ofGDP in 2004 – compared to 8.27 in the US, 7.89per cent in Europe and 7.4 per cent in Asia as awhole. But the potential for growth in the countryis huge and there is likely to be many more thanthe current eight private non-life insurers in themarket soon. Private insurers have already pushedup sales by focusing on the development ofalternative distribution channels, like corporatebrokers, bancassurance, the Internet and corporateagents, but, as Fitch reports, an FDI hike could verywell be the ultimate catalyst this country’s insuranceindustry needs.

www.itij.co.uk International Travel Insurance Journal

INSURANCEMATTERS 11

Pru rejects Aviva offerOn 16 March, UK insurer Aviva made a writtenproposal to the board of directors of Prudentialregarding a possible combination of the twocompanies. Although the offer was rejected and Avivaannounced it would only proceed with its £17-billionbid on a recommended basis, chief executive RichardHarvey has since said he would take his case for amerger directly to shareholders.The original proposal included an all-share merger ofthe two groups, with a merger ratio of 82 new Avivashares for every 100 Prudential shares held – theequivalent of 708p per share. Essentially, the movewas designed to lead to cost savings of around £320million per year, with a new board and managementteam drawn from both organizations. Aviva expressedits vision for creating a ‘leading global insurer’ thatwould have a pro forma market capitalisation ofapproximately £36 billion and premium income ofaround £40 billion. Other strategic benefits cited byAviva included a diversified geographic presence forthe combined group, new growth opportunities andrevenue benefits, and significant opportunities forcapital efficiencies, improved margins and enhancedreturns on capital. The merger, it said, would createsignificant value for both companies’ shareholders.“This is a real opportunity to create a leading player inthe global savings, investments and insurance market,”commented Richard Harvey, Aviva chief executive. Itis hoped that by making the proposal public,Prudential will be encouraged to negotiate on theoffer. Experts also say the offer could encourageapproaches from other major European insurers.Prudential took independent advise on the proposaland issued a statement on 18 March explaining that itdid not consider it to be in the best interest of itsshareholders. It also stated that it was not enteringinto further discussions on the matter and reaffirmedthe Board’s confidence in the company’s future as anindependent entity.Issuing its full year results for 2005 on the day ofAviva’s proposal, Prudential showed a total statutoryprofit from continuing operations of £957 million, up36 per cent on the previous year.

Zurich resolutionInsurance-based financial services provider ZurichFinancial Services Group has announced that ZurichAmerican Insurance Company and its subsidiaries(ZAIC) have reached settlements with nine US stateattorneys general and one insurance commissioner aspart of the industry-wide investigations into brokercompensation and insurance placement practices. Theagreements call for total payments of US$171.7million and require the implementation of newdisclosure and compliance regimes.

As part of thesettlement, theNational Associationof InsuranceCommissioners’Broker Activities TaskForce (NAIC TaskForce) assisted indeveloping aregulatory settlementwith ZAIC. Underthe terms of theseregulatoryagreements, ZAICwill implement a newpre-bindingdisclosuremechanism wherebybrokers and agentsinform customers ofthe company’s

compensation arrangements. The insurancecommissioner of Florida has executed such anagreement and the NAIC Task Force has urged allstate insurance regulators to consider joining it.“We are pleased that [this] announcement brings agreater sense of clarity and transparency to the quotingprocess for our customers in the US, and we lookforward to working collaboratively with our producersand business partners in this new environment,”commented James J. Schiro, CEO of Zurich.

NAIC studies weathereffects on insuranceThe National Association of Insurance Commissioners(NAIC) has elected to set up a task force to assesshow climate change in the US may influence thefinancial health of insurance companies and theavailability and cost of insurance for their customers.The action was taken at NAIC’s quarterly meeting inOrlando, Florida, in March. By Milan Korcok

Task force head Tim Wagner, director of the NebraskaDepartment of Insurance, noted: “It is becomingclearer that we are experiencing more frequent andmore powerful weather events that pose hugechallenges for the insurance industry. The impacts arebeing felt on our coasts and in the interior US. We’reseeing all kinds of extreme weather in the Great Plainsstates, including droughts, tornadoes, brushfires andsevere hailstorms.” Just days after NAIC made itsannouncement, the worst-ever outbreak of tornadoes(110 in one day) slashed through Arkansas andMissouri (Tornado alley) killing 10 people. At the sametime, the largest-ever recorded brush fires in Texashistory continued to devour thousands of acres in thenortheastern part of the state.The NAIC action comes in the wake of $30 billion ininsured losses in the US in 2004, and up to $60 billionin insured losses by Hurricane Katrina alone in 2005.The association notes that according to a recent study,US insurers have felt a 15-fold increase in insuredlosses from catastrophic weather events in the pastthree decades, far outpacing premium growth,population and inflation over that time.Co-leader of the task force Mike Kreidler, insurancecommissioner for the State of Washington, said thetask force will examine whether insurers haveadequately factored these weather-relatedcatastrophes into their financial and risk models.He added: “We had a statewide drought emergencyin Washington last year. With record low snow packand stream flows, the eastern part of the state wasdeclared a farm disaster area and our ski industry hadits worst year on record.”Nancy Skinner, US Director of The Climate Group (a

task-specific coalition representing Fortune500 companies and governmentagencies), told the Orlando meeting thatpeople tend to think about climatechange in terms of Category 5 hurricanesand sea level rise.“But changing weather patterns such asmore intense rain or ice storms andlower snow levels can also have bigimpacts. Business and homeownerclaims rise as a result of floods or whenthe ski reason ends from lack of snow.Other lines of insurance are alsovulnerable, like health when heat-relatedrespiratory diseases and mosquito-bornediseases increase.” NAIC is a nationalorganisation representing insuranceregulators in all states.

Aon reports its restructuring plansAon Corp. released information in its annual report at thebeginning of March, saying it will cut 1,800 jobs from itsworldwide operations as part of a three-year restructuringplan. The report filing, made to the US Securities andExchange Commission on 9 March, said the reduction inemployees – listed as 1,400 when the companyannounced its third quarter earnings in November – willnow be greater than originally anticipated.Additionally, the report noted that Aon would beclosing several offices, making other asset impairmentsand expenses necessary to implement the initiatives.The restructuring plan will result in cumulative pre-taxcharges of $262 million.The aim of the restructuring is to improve thecompany’s ‘profitability through operational efficiency’.Targeted annualized savings are expected to beapproximately £180 million by 2008.This is set to put Aon in a favourable market position.Although accounting for around just 15 to 20 per centof the broker market in the US, the Chicago-basedcompany has seen its earnings soar over the last year

due to the strategies implemented by new chiefexecutive Gregory C. Case. Narrowing thecompany’s focus by selling off non-core units andenacting the restructuring plan has sent Aon’s stock upover 93 per cent from its 52-week low of $20.64 lastMay, and over 60 per cent in the last year.And although Aon doesn’t have Marsh & McLennan’s40 per cent market share, it does have a less taintedimage to sell to potential clients, says CNNMoney.Although the company made a settlement amountingto $190 as part of Eliot Spitzer’s industry probe, andpaid out an additional $38 million to resolve a classaction lawsuit relating to contingent commissions, itwasn’t embroiled to quite the extent that Marsh was,with its bid rigging operation. It is now focusing on building it brokerage business,which reportedly beat Marsh in terms of organicrevenue growth last year, and looking to attract moreclients and talent to the company. Case downplayedany speculation, however, that the company wasactively targeting Marsh or any other competitor.

No let up forMMCFlorida’s Charles J. Crist is the latest attorney generalto file bid-rigging charges against Marsh & McLennanCos. Inc. (MMC). Despite reaching a multi-stateregulatory agreement with various state insuranceregulators last September, MMC still has outstandingmatters to resolve with some states and now Floridahas been added to this list.A joint action, filed by Mr Crist and Tom Gallagher ofthe Florida Department of FinancialServices in mid March, chargesMMC and three of its subsidiarieswith numerous violations of Florida’sRacketeer Act and antitrust statutes.MCC attorney Barry Richard hasblasted the lawsuit, however, sayingin a statement that it ‘never shouldhave been filed’ and that it ‘distortsthe facts, disregards the events of thepast 18 months and ignores releasessigned by the state of Florida itself’.New York Attorney General EliotSpitzer’s fraud and bid-rigging suit,brought against the country’s largestbrokerage in 2004, was settled inJanuary 2005, with MMC agreeingto pay $850 million to clientsnationwide and to change itspractices.More recently, California InsuranceCommissioner John Garamendi announced in midMarch that he had reached an agreement with thecompany to resolve his investigation into allegedimproper practices at the brokerage, including bidrigging and client steering. The settlement includes theadoption in the state of the business reforms outlinedin MMC’s settlement with Mr Spitzer, and thereimbursement of the state’s $15,000 in legal costsassociated with its investigation. Mr Garamendi is the34th state regulator to reach a settlement with MMC.

International Travel Insurance Journal www.itij.co.uk

HEALTHMATTERS12

West Nile boost forpregnant women

Pregnant women who contract West Nile virus arestill likely to conceive healthy babies, according toresearch in the US by the Federal Centers forDisease Control (CDC), although there is still asmall risk of birth defects.The CDC report was described as ‘somewhatreassuring’ by researchers, who advised pregnantwomen to be especially careful to followprecautions, including staying indoors whenmosquito activity is high and wearing repellentduring the mosquito season.The report revealed that only three babies out of72 infants in 16 US states whose mothers had WestNile during pregnancy had problems that mighthave been linked with exposure to the virus beforebirth. Two had abnormally small heads and one wasborn with an extra toe. In all three cases, themothers had fevers, but otherwise, mild cases ofWest Nile virus. One of the small-headed babieshad severe defects and died three days after birth,but the other appeared to grow out of the defectand was developing normally by one year old.None of the infants studied displayed ‘conclusivelaboratory evidence’ of developing West Nileinfection from their mothers, according to thereport. However, scientists are uncertain howeffective current tests are at detecting West Nilevirus at birth. “Due to circumstantial evidence, wecouldn’t say with confidence the birth problemswere not caused by West Nile virus,” explainedCDC researcher and co-author Daniel O’Leary.The states involved in the new report are Arizona,Colorado, Idaho, Illinois, Kansas, Louisiana,Minnesota, Montana, Nebraska, New York, NorthDakota, Oklahoma, Pennsylvania, South Dakota,Texas and Wyoming.

Mosquito-borne virus in holiday islesA mosquito-borne virus, chikungunya, which hasbeen spreading through the holiday destinationislands in the Indian Ocean, has now been found inMadagascar. The virus infection has been growingworse in Mauritius where an increasing number ofpeople are becoming ill, according to travel andmedical assistance provider International SOS.Nearly 2,600 cases have been confirmed andanother 6,000 people are believed to be infected.Another Indian Ocean island, Reunion, is

experiencing an even larger outbreak of the disease,with more than 204,000 people infected. TheSeychelles and Mayotte have also reported cases,with respectively 4,600 and 2,800 people infected.Chikungunya occurs more frequently during the rainyseason when the density of mosquitoes is higher thanusual. It cannot pass from person to person.The World Health Organisation has sent a team toReunion to assess control measures taken by theFrench Health Ministry, which is already in chargelocally. It will also work with the other affected islands. There has been a number of cases of travellers andtourists catching the virus whilst visiting the islands.These have been diagnosed in France, Switzerland,Germany, French Guyana and Martinique, but therisk of a local outbreak is minimal, since it requiresthe presence of a specific type of mosquito toenable the virus to be passed from an infectedperson to someone else.Says Dr Fraser Lamond, regional medical director,International SOS: “Chikungunya, originally foundonly in Africa, is now being reported in SoutheastAsia, where it is considered an increasing publichealth problem. There is no vaccine to prevent it.The only way to prevent the disease is to preventmosquito bites. “Whilst there are no recommendations againsttravelling to these islands, business travellers andholidaymakers with health concerns should takeadvice before leaving their home country. Theymust be careful and should take similar precautionsto those if they were visiting a known malaria area.” The incubation time for the virus is four to seven days,after which a patient develops a sudden fever that lastsfrom two to five days. In addition to fever, severe jointpain is one of the disease's main symptoms. In fact,

the name chikungunya comes from the Swahili wordmeaning ‘that which contorts or bends up’: infectedpeople often temporarily assume a stooped posturedue to associated pain. Pain is especially common inthe knees, ankles, small joints (especially in hands andfeet) and any previously injured joint.Other common symptoms are a rash, particularly onthe limbs and torso, and headache. Patients maybecome nauseous, vomit, and show other general 'flu-like' symptoms. Less common symptoms can includeredness in the eyes and unusual sensitivity to light.Chikungunya is not traditionally considered a fataldisease, though it can weaken the immune systemof an infected person and thus allow the patient tobecome infected with other diseases more easily.There is no specific cure for the disease andtreatment is purely symptomatic. The treatmentconsists mainly of rest, and medication or therapiesthat will reduce pain and discomfort. Recovery takesseveral weeks and is characterized by an intensetiredness and difficulty concentrating. The joint painscan last for several months.

Israel latest bird fluvictimIsrael has become the latest country to report casesof the deadly H5N1 virus, with three peoplehospitalized on suspicion of having contracted the flustrain. The avian flu killed thousands of poultry atkibbutz collective farms in the south and centre of

thecountry,and six-kilometrequarantinezones havebeen set uparound theaffectedareas tohelpcontain anyspread.The IsraeliAgricultureMinistrysaid the

virus killed 11,000 turkeys at two such farms inthe south and 5,000 chickens at a kibbutz in thecentre of the country. The Ministry resultantlyordered tens of thousands of birds to bedestroyed to help contain the outbreak. It is nottaking any chances, however, and has alsoordered protective clothing for poultry farmers inthe affected areas, and has ordered four millionunits of bird flu vaccine from Holland.The virus was detected in neighbouring Egypt lastmonth, and may have entered Israel from there.International health officials have warned that themore H5N1 spreads, the greater the danger the viruscould mutate and become transmissible amongsthumans, potentially leading to a global pandemic.In a rare act of cooperation, Israel is testing poultryfor the virus in the West Bank and Gaza on behalf ofthe Palestinian Authority. Health standards are lowerin Palestinian areas, and it is of mutual interest forthe countries to contain the virus.

Chikungunya virus hits tourism trade

Blueprint fortravellers’ illness GeoSentinel, a network of 30 travel-medicine clinicson six continents, has collated its records of alltreated travellers to provide a blueprint of illnesses.This list provides the most comprehensive pictureyet of the illnesses most likely to strike visitors toparticular regions of thedeveloping world.For the intrepid traveller,venturing to Africa or SoutheastAsia runs the risk of contractingmalaria or dengue fever. In theCaribbean and South America, itis infections from worms andother parasites, while in south-central Asia respiratory illness isthe danger.This run down of illnesses is areal blueprint for doctors,according to David Freedman,lead researcher of a studyreported in the New EnglandJournal of Medicine.

Malaria claims livesin GambiaBritish holidaymakers returning from the Gambia inrecent months have reported a number of malariafatalities, which has prompted the HealthProtection Agency (HPA) to issue strongprecautions for travellers.Liaising with the Federation of Tour Operators,the HPA has strongly advised travel agents andtour operators to inform all clients of the need totake appropriate medication against malaria fortravel to affected areas. There are several differentmedication options and time lengths involved forpreventing malaria, all of which can be obtainedon prescription.“Clients booking late or taking advantage of latedeparture offers need to be alerted to the time thatmay be required to adequately prepare themselvesagainst the risk of malaria,” according to the HPA.It also urges trade partners to ensure that thisadvice is drawn to the attention of all customersand where appropriate be included in relevantwebsites and literature.

Editorialcomment

We have another packed issue for you thismonth, full of the latest news from theinternational travel insurance industry – andwhat an evolving industry it is. Our lead storiesthis month illustrate the constant developmentof the industry and its forward-thinking nature,with news of the take over of Travel GuardInternational by AIG, and a special report onthe Travel Health Insurance Association ofCanada’s new working group for theDominican Republic.Other news this issue includes details of thereauthorization of the Patriot Act in the US,the consequences of which are explored inour News Analysis feature this month. We alsohave the latest on the ‘travel rule’ beingdebated in the US,whereby an insurermay not discriminatebased on acustomers past orfuture travel plans;news of thedevelopment oftravel insurance bythe Hong Konggovernment, whichhas producedregulation to promote the registration of travelagents as insurance sales representatives; aswell as news of an ITIJ Award winners visit tothe home of the UK’s Prime Minister to discussissues affecting the country’s insurance industry.Elsewhere in this issue, there are details of thefirst insurance policy to cover serious drought;the latest travel health news in our HealthMatters section; all the details of new productsand incentives in our Company Brief section;and up-to-date analysis of the air ambulanceindustry in our popular section dedicated solelyto this sector of the market.Our features this month look at the travelinsurance market in Slovakia and what doingbusiness in this EU country entails; howinsurance companies choose their assistancepartners; and how mental illness might affectthe purchase of travel insurance and whatinsurers should bear in mind when preparingto deal with such customers. An information-packed issue, I’m sure you’llagree. I hope you enjoy it.

Sarah LeeEditor

The Chikungunya virus, which was first diagnosedin the Reunion Island in January, has had a significantimpact on reservations from French tourists to theisland, according to the French Association of TourOperators (CETO), which is expecting a drop ofbetween 30 and 40 per cent on bookings.The virus, which is transmitted by mosquitoes, hasalready infected 180,000 people on ReunionIsland, where tourism is one of the majorindustries with €3 million in revenues and 10,000people employed by related business. JocelyneLauret, CEO of Reunion’s Office of Tourism(CTR), said that 12,000 overnight stays werecancelled in February, representing a loss of€500,000, while shops in the city centrereported a loss of 30 per cent.The CTR has suspended marketing andpromotions until the virus is under control, butwill return with an aggressive campaign to wooback tourists when the situation is back to normal.

International Travel Insurance Journal www.itij.co.uk

TRAVELMATTERS14

Huge increase inpassengers predictedThe number of global airline passengers is expectedto rise by 45 per cent, increasing revenue from£738 million in 2005 to more than £1 billion in2017. However, expansion also creates drawbacks,such as overcapacity. Both Airbus and Boeing Co.reported more than 1,000 production orders for2005, a figure just clear of the most booked ever ina single year – generating a total of 2,057.These figures are good news for the world airlinefleet, but, with no mechanism to eliminate existingcapacity, it is bad news for storage. Planes are rarelyscrapped, but sold to lower-carriers or investorsand re-used until they become too inefficient to fly.With planes becoming more serviceable and stocksbeing added to on a massive scale, thereseems to be no end in sight to the expansion.In addition, the Federal AviationAdministration has been predicting turbulencefor passengers, with airlines growing morecramped and skies becoming ever morecongested. And with the current scheduledcutbacks, due to high fuel costs andbankruptcies, ticket prices are also expectedto rise this summer.Moreover, passengers travelling on leisureflights are increasingly unprotected from thefinancial collapse of their carriers. More sosince the advice of the Civil Aviation Authority wasoverlooked and the £1 levy proposed for all air fareswas rejected. This would have financed a protectionscheme for all scheduled flights, but was opposed bycarriers such as British Airways and Ryanair, whobelieved that passengers booking with successfulairlines would be paying the price for thosepassengers booking with less reliable carriers. In1996, 96 per cent of UK international leisuretravellers were protected by Air Travel Organisers’Licensing – a number that dropped to 66 per cent in2004 and could decline to just 20 per cent by 2010.

How long do wehave to wait?As the approaching summer months in Europebring cheer to airliners and passengers alike we takea look at last summer’s flight delays and hope thatthe trend will not continue. Almost 11 per cent of charter flights from UKairports were at least an hour late last summer, andthe latest figures from the Air Transport UsersCouncil (AUC) show that this trend is increasing.Statistics based on departures from nine UK airportsshow that 10.9 per cent of charter flights were overan hour late in the April-October period, against9.3 per cent in summer 2004 and 7.8 per cent theprevious summer.First Choice was the leading airline out of the big six

UK charter carriers withonly six per cent offlights over an hour late,while Excel Airways hadthe worst performancewith 14 per cent offlights at least an hourlate. Overall bestperformer was Spain’sVolar Airlines with 5.5per cent of flights morethan an hour late,followed by First Choice

and Thomsonfly at 6.4 per cent.These results come despite last year’s new EUcompensation rules for delayed flights. AUCchairman Tina Tietjen commented on the council’shope for improved punctuality: “We aredisappointed to report that this has not happenedand summer 2005 again saw an overalldeterioration in charter airline performance year-on-year. We appreciate that delays can be causedby a number of external factors, but a significantproportion of delays are within the control of theairlines concerned.”

New trends in global business travelIncreased use of technology, changes in the globaleconomy, the implications of low-cost airlines andtraining for travel abroad are three areas currentlyunder the travel spotlight, according to recentsurveys conducted into the future of airline use forbusiness travellers.The 10th annual Barclaycard Business Travel Surveyhas revealed that the increased use of technology,such as video conferencing, will significantly reducethe demand for business travel in the next 10 years.New research indicates that individual days away forbusiness will decline to 2.0 per week in 2015, from2.4 in 2005-06. This is attributed to an increasingrole for video conferencing, for example, which isexpected to be used by 50 per cent of workers by2015, compared to 26 per cent now.The report also suggests that changes in the globaleconomy will have the biggest impact on businesstravellers in the next decade. The reports says that,while distances travelled for business are predictedto increase, growth will be seen at a slower ratethan the 32 per cent increase between 1996-97and 2005-06. Long-haul air services will see themost growth, with business travel to globaldestinations expected to increase. Distance travelledper month will rise to approximately 700 miles perperson, compared to 609 miles currently. Inaddition, business people will on average spend anextra night away from home each month, up from4.1 nights in 2005/06, according to the report.“These trends have significant implications for thebusiness travel industry,” said Tim Carlier,Barclaycard Business sales director. “Long distancetravel providers will need to respond to theincreasingly demanding business traveller who istravelling further distances for longer periods oftime. Furthermore, the decline in shorter journeysmay provide a challenge for the industry to considerother ways in which to grow business.”A survey conducted by Carlson Wagonlit (CWT) hasdiscovered that fewer than one in ten European business

travellers regularly use low-cost carriers for work trips,with almost 50 per cent never having set foot on one.However, no-frills airlines met with a much moreenthusiastic response in other parts of the world, with 28per cent of Latin Americans using them more than 60per cent of the time and 16 per cent of North Americanstaking the low-cost option more often than not.The survey, which quizzed 2,100 business travellersand 650 travel managers, also revealed that morethan 83 per cent of travel managers believe virtuallyall bookings will be made online within five years.CWT president and chief executive Hubert Jolysaid: “This enthusiasm for online booking is whatwe are experiencing with our clients around theworld. There is intense growth in Australia, whereour online bookings are up 160 per cent over lastyear, in Europe where they are up 71 per cent andin the US where there is an increase of 43 per cent.Online is a key factor for those companies lookingto save money in their travel programme.”Meanwhile, nine out of ten business travellersreceive no advice or training when they travelabroad, with a quarter of companies even failing toinsure their staff correctly, according to a survey bytraining firm Planet Wise.Ninety per cent of companies do nothing toprepare employees for overseas travel, leavingthem unaware of how to behave in certain culturesor what to do in an emergency, the survey stated. Italso added that 25 per cent of all UK travellers areinadequately insured despite claiming more than 50per cent fall sick on foreign business trips.“Many organisations think their responsibility stops atbuying airline tickets and booking a hotel roomwhen, in fact, all employers have a duty to care fortheir staff when they are away on business,” saidPlanet Wise director Mark Hide. “Companies needto start thinking about supplying travellers withinformation such as destination risk assessment andadvice on culture, first aid and good hygiene as wellas inoculations and insurance.”

www.itij.co.uk International Travel Insurance Journal

TRAVELMATTERS 15

Undeterred by external threats, cruise tourism hasbecome the favoured option for an increasingnumber of travellers worldwide. According to theWorld Trade Organisation, an estimated 460 millioninternational tourist cruisers were recorded in thefirst seven months of 2005, a figure 5.9 per centhigher than for the same period in 2004.Leisure tourism is leading the market, ahead ofbusiness tourism, with the increasing number ofaffluent baby boomers fuelling the cruisephenomena. In the UK, a near doublingof UK cruise passengers is expected bythe end of the decade. This is due to theincreasingly disposable income of theolder population, and an increase oflarger, 3,000-plus capacity ships enablingcompetitive pricing and opening up theindustry to a broader market. Moreover,the rising number of ships departing fromUK ports and the expanding number ofshorter duration sailings is furtherincreasing popularity. The Internet is alsocontributing to cruise interest – currentlydue to its capacity as a source ofinformation more than for actualbookings, but this is set to evolve also.According to Carnival UK, the 1.1 millioncruisers expected to take to the seas this yearwill grow to between 1.7 million and 1.8 millionby 2010. And they are not all baby boomers,with P&O Cruises reporting a record number offamilies with children in 2005, when 9,000youngsters were taken on cruises.In the US, the desire to see far-flung places andspend money on experiences rather than materialgoods has prompted a consumer drive for exoticcruises. The majority of this travelling demographicare adventurous seniors or affluent baby boomerswho have ‘been there, done that’ and so wouldrather visit archaeological sites in the Middle East orremote arctic destinations.Crystal Cruises has recently kicked off a 106-dayworld cruise that stops off at Tripoli and Libyabetween calls to Dubai and Rome, and is to begina 14-day Arctic cruise in June. “It’s not enough tosit on the pool deck and enjoy the sun. They(baby boomers) have no qualms about spendingthe money but they want to be enriched andeducated during their holidays,” said Brad Ball,spokesman for Silver Sea Cruises, which begantrips to Beirut in 2004.

Cruising boomerslead the way

US targets space travel in safety probeAs the reality of space tourism draws ever closer,the US Federal Aviation Administration (FAA) hasdemanded tight regulations to prevent terroristsdestroying a spacecraft.The draft report’s key suggestion is the screening ofall space tourists to ensure they are not terrorists,although the report has no strict proposals on thehealth of any would-be space travellers. The FAA isattempting to regulate the commercial spaceindustry in a bid to ensure minimum safetystandards and has recommended similar securitychecks to those carried out for airline passengers.The FAA also recommends space tourismcompanies check the global ‘no-fly’ list from the USHomeland Security Department, to excludepotential terrorists.“New technologies carry new risks. Nonetheless,Congress recognises that private industry has begunto develop commercial launch vehicles capable ofcarrying human beings into space, and greaterprivate investment in these efforts will stimulate thenation’s commercial space transportation industry asa whole,” the report stated. “The public interest isserved by creating a clear legal, regulatory, andsafety regime for commercial human spaceflight.”The FAA added that companies should providepassengers with safety advice, including the numberof flights the spacecraft has been on and anyproblems with the craft. Space travellers should also

be given pre-flight training to handle emergencysituations such as a loss of cabin pressure or fire.However, the FAA believes that passengers shoulddecide for themselves whether they are fit for spacetravel. After consulting the public, the FAA shouldpublish its final report before June 2006.The draft regulations may have to come into forcesoon, as the first space tourists have already made itinto low orbit around the Earth, following thesuccess of tourist rides on Russian Soyuz spaceships,for which three passengers paid $20 million each. Inaddition, Burt Rutan successfully launchedSpaceShipOne in 2004, as his team won the $10-million prize for the first private ship to fly 100kilometres above the Earth.The FAA suggestions will also affect RichardBranson’s Virgin Galactic project, which aims to takepeople into space from a spaceport in New Mexicoby the end of the decade.This announcement follows hot on the heels of aclaim by US Transportation Secretary Norman Minetathat paying space tourists could be lifting off from theUS by as early as 2008. He recently told a group ofspace entrepreneurs that he expects to issue permitsfor test flights in 2007. If those are successful, licensesfor passengers on space flights could then be granted.Mineta said: “This timeline isn’t based on sciencefiction, but the expected state of commercial spacein two years.”

US border plan hitstourism figuresThe US plan to require people travelling betweenthe US and Canada to have passports or similaridentification is already affecting cross-border tourismeven before it has been implemented, according toRandy Williams of the Tourism Industry Associationof Canada at the Binational Tourism AllianceConference to promote cross-border tourism.Williams told the panel of US and Canadiangovernment officials that convention planners arehesitant to book events across the border a year or

two in advancewithout knowinghow the plan willbe implementedor whatidentification cardswill cost. Headded that manyUS travellers werenow avoidingCanada, believingthat therequirement wasalready in effect.“There isuncertainty in the

marketplace and uncertainty is killing us right now,”Williams claimed. Other concerns raised were thattourists would not bother to apply for cards forthem and their family or would find them to costly.US travellers currently need to show a driver’slicense or birth certificate when re-entering thecountry at land borders. Under the new legislationbeing implemented by the US Department ofHomeland Security and State Department, beginning1 January 2008, they will need either a passport orother form of identification. Canadians, meanwhile,will have to show a passport to enter the US.Ontario Tourism Minister Jim Bradley is convinced thattourism on both sides of the border will suffer underthe new legislation and favours upgrading existingforms of identification, like the driver’s licence, withcitizenship designation and security features. Hestated: “That would achieve greater security whileallowing us all to cross the border on the informalbasis we have enjoyed throughout history.”In 2003, there were 34.5 million visits by Canadiansto the US and 22 million US visits to Ontario,according to the Binational Tourism Alliance. Thesefigures represent huge amounts of tourism revenue,so expect the debate over border ID to run and run.

The changing face of travel for agentsTravel agents are losing out to online travel sites andonline travel sites are losing out to direct bookingtrends. Mobile phones are also cashing in on theaction, while information communications technology(ICT) tries to integrate the entire process.As new technology muscles in on the traditionalbooking process, those who come out on top willdo so only through the use of savvyadaptation and specialisation. The restwill be left by the wayside as technologypushes ever forward.“There has been a 30 per cent decrease inthe number of agents over the last threeor four years,” says Chris Mottershead,chief executive of Travelzest, a companyset up to acquire specialist travelbusinesses. As an example, MyTravel –one of Europe’s largest tour operators –has closed 100 of its high street outlets.The Internet has certainly contributed tothis trend, with its superior accessibility andincreased efficiency. A higher proportion ofgeneral wealth has led to more peopletaking holidays than ever before and manyof these are now booked from thecomfort of their own home, or theconvenience of an office, enabling travellersto be in control of the booking process –even creating their own itineraries.

As Mottershead explains: “More people can createtheir own holidays and the fastest way to book is bydoing it online rather than going to a travel agent.”Consequently, online agents such as Expedia andTravelmole.com have reported a 36 per cent and60 per cent growth in sales respectively.

continued on p.25

Holiday time gets shorter for US travellersUS travellers are increasingly taking three-dayweekends rather than the traditional week-longholiday, according to David Wyss, chief economistfor Standard & Poors. In addition, they are also morelikely to drive to their destination than fly, he added.“With memories of terror attacks fading, and the dollardropping to the level of foreign currency, the demand

for tourism is increasing,” he explained. However, hebelieved this trend was prompting US travellers to takeshorter holidays more frequently. Wyss also added thatfuture rises in energy prices were a concern, while thespectre of future terrorism was always a threat totourism. “Terrorism is the elephant in the room – whathappens if there are more terrorist attacks?” he warned.

International Travel Insurance Journal www.itij.co.uk

COMPANYBRIEF16

Standard Alliance has teamed up with MapfreAsistencia of Spain to begin a new travel insurancebusiness operation in Nigeria. The new producthas been designed with special features, whichclaim to offer vast benefits to the company’snumerous clients and interested travellers.The policy provides cover options for thosetravelling to Schengen countries or worldwide and,although the benefits derive largely from foreigncurrencies, the flexibility is such that holders canpay premiums in Naira. Structured to meet allinternational standards, Spanish giant Mapfre waschosen to partner Alliance due to its reputation asa front liner in the global assistance sector, itsfinancial base and worldwide spread. Companymanaging director, Bode Akingboye, describes thepolicy as a rare combination of uniqueness andoverlapping value.

Travel insuranceoffered to Nigeria

Travel insurance provider, Travel GuardInternational, is offering a special bonus for first-time bookings taken by home-based agencies viathe company’s ezTIPS software. Those home-based agencies that book electronically will nowearn an additional five per cent bonus for the firstthree months after signing up via the ezTIPSsoftware.Travel Guard, which has also set up a help desk and asweepstake for these agents, believes that thesoftware reduces the time it normally takes to book atravel insurance policy from an average of 12 minutesdown to two minutes. It has also built-in tools thatremind travel agents to ask their customers abouttravel insurance with each travel booking.Travel Guard’s executive vice president TomZavadsky commented: “We are happy to showour appreciation for our home agent partners notonly through our commission bonus andsweepstakes offers, but also by making it easy forhome agents to sell Travel Guard.”

Incentives for homebased agents

ZUJI and travel insurer Mondial Assistance Groupare forming an exclusive partnership to enablecustomers to buy travel insurance online throughoutthe Asia-Pacific region.Consumers can purchase their travel insurancecover via ZUJI travel agency sites in Singapore,Hong Kong, Australia, New Zealand, Taiwan andKorea. Stand-alone medical and cancellationinsurance products will also be offered.In the US, about 20 per cent of online travellerstake up medical insurance before they travel. ZUJIand Mondial Assistance anticipate a similar, if nothigher, response from Asia-based travellers. Indeed,early results indicate that 14 per cent of ZUJISingapore’s and 23 per cent of ZUJI Australia’scustomers bought travel insurance when offered itin the ‘check out’ path.ZUJI’s general manager of partnerships, ChadHoward, commented: “Until now, booking travelinsurance online in Asia-Pacific has been an unwieldyprocess. ZUJI has changed that. By the developmentof exclusive technology for the purpose, ZUJI cannow facilitate online purchase of comprehensivetravel insurance from Mondial Assistance.”Adding to that, Steve Hook, director of corporateand travel at Mondial UK said: “UK trends suggestthat depending on the nature of the booking andthe final destination, the sales penetration of travelinsurance to bookings can vary by as much as threeper cent and 20 per cent. This depends on howeasily the insurance is made available to thecustomer and their confidence in the insurer.”

ZUJI offers travelinsurance

A Botswana-based insurance company hasintroduced the first ever home-based travelinsurance range. Ian Youngman reports

“With more and morepeople in Botswanatravelling for purposesof study, business andpleasure, there isclearly a need for travelinsurance,” says DzikeNganunu, the managingdirector of BotswanaInsurance CompanyLimited (BICL).

BICL has partnered with AIG Assist andInternational SOS to provide a wide range ofproducts, including leisure travel for individuals,families and groups, business travel and seniorstravel for those between the ages of 71 and 85.The travel insurance benefits include up to P20-million for medical expenses, evacuation andrepatriation; return of mortal remains, burial andcoffin expenses; up to P500,000 for accidentaldeath and permanent disability cover; and up toP20,000 baggage and cancellation and curtailmentcover. There is also cover for natural disasters,travel delay, hijack, kidnap and wrongful detention.AIG has handled cases of wrongful detention inplaces like Saudi Arabia and Mauritius. No country isexempted in terms of terrorism cover, but itexcludes ‘wilful exposure’ to danger. Insurers explainthat visiting hotspots like Iraq would be excluded,but if a customer visits London and suffers a bombattack in the tube, then cover will apply.At present, BICL will use the AIG Assist call centrein Johannesburg, but it is negotiating withMedRescue International about setting up a callcentre in Botswana.

Travel insurancecomes to Botswana

Leading provider of travel industry bonds, Travel &General Management Services Limited – a memberof the Travel & General Group (T&G) – has beenappointed as a franchisee to the Civil AviationAuthority (CAA) for Small Business Air TravelOrganiser Licensing (ATOL) applications. One of theunique features of the new franchise is that for thefirst time the CAA will accept ‘per passenger’insurance cover as an alternative to bonding.T&G’s underwriting arm, Travel & GeneralInsurance Company plc (TGIC) has developed anew per passenger insurance to complement thisnew service – total payment protection policy(topp). Topp allows small business ATOL Holdersthe ability to cover both licensable and non-licensable turnover under the same policy.Samantha Callaghan, TGIC spokespersoncommented: “With only one application and onepolicy, topp provides both simplicity and flexibility.There is no penalty for over projecting turnover andas topp is sold on a ‘pay-as-you-go’ basis it hasobvious cash-flow benefits. Consumers can bereassured by the ATOL and topp logos that fullprotection is in place.”Andrew Cohen, Head of ATOL Licensing at theCAA, added: “The agreement ensures that there isno reduction in protection for consumers, with therepatriation and refund arrangements identical tothose provided through the usual bond.”

New agreement forATOL and CAA

ResortQuest, the vacation property rental arm ofGaylord Entertainment Co., is getting into the travelinsurance business through a deal with Travel GuardInternational. The collaboration has resulted ininsurance packages including hurricane coverage anda hurricane relocation service that allows customersto move their reservations to another ResortQuestlocation during the same scheduled dates. Othercoverage includes medical emergencies and lostluggage.According to the company’s website, Travel Guardinsurance is underwritten by American InternationalCos. and Arch Insurance Group Inc.

Deal sees new travelinsurance player

Citybond Suretravel, a division of Citybond Holdingsplc, has just renewed its Retail Scheme with EuropAssistance for a further two years. In a bid to meetthe ever-changing needs of the modern traveller,Citybond is making the inclusion of medical expensesand personal accident cover for acts of terrorism asstandard, a key feature of the 2006 scheme.Citybond’s broking director, Greg Lawson, confirmedthat working closely with Europ Assistance for the lasttwo years has reaped major benefits for both entities,enabling a very effective partnership. “By taking theinnovative and unique step of providing a medicalscreening solution via the Web for agents and clientsalike, as well as persistent vigilance about the quality ofour book, we have managed to further improve theperformance of our scheme.”Fiona McDonald, head of underwriting at EuropAssistance, commented: “Citybond has done a greatjob in building a stable book of business and we aredelighted to extend our partnership for a furthertwo years.”

Citybond renewsretail scheme

United Arab Emirates-based healthcare providerNeuron LLC has appointed CEGA Group to provideits global medical assistance services. CEGA’s UK-based, multi-lingual callcentre will provide around-the-clock emergencyassistance to Neuron’sinternational client base,comprising majorcorporations operating inthe Middle East and South Asia.Peter Hogg, CEO ofNeuron, commented: “Wechose CEGA to providethese important services to our clients because oftheir experience in the global market and their abilityto work in a multi-lingual, multi-cultural environment.”

Neuron appointsCEGA

www.itij.co.uk International Travel Insurance Journal

AIR AMBULANCENEWS 17

Emergency chopperservice for OregonREACH AirMedical Services(REACH) has setup a new base,located atCorvallisMunicipalAirport, in orderto provide morerapid responseto patients inneed ofemergencymedical airrescue. The newemergencyhelicopterservice, which isto be establishedand available forservice in earlyspring of 2006, isto extend across the Mid-Valley area of Oregon,serving the emergent air medical transport needs ofthe surrounding communities.According to REACH CEO, Jim Adams: “We’reexcited to be able to extend our services toOregon. For some time REACH has been aware ofthe growing need for local helicopter air ambulanceservices to the Greater Corvallis Area.”REACH has teamed up with Cal-Ore Life Flight,based in Brookings, Oregon, and will offer a full-spectrum of patient transport services: ground,airplane and helicopter medical transport. Presently,Cal-Ore provides ground and airplane patienttransport services.REACH’s new base creates a life-saving emergencyair transportation service to a region that has notpreviously had a dedicated air ambulance presence.REACH will be able to assist trauma victims whoare far from the region’s emergency facilities and, inaddition, the new base places a helicopter closer tothe hospitals most often requesting a facility-to-facility transfer for patients in need of specialityemergency care.“We are well into the process of State EMS Aircraftlicensing and securing medical and aviation crewquarters at the CorvallisAirport,” continued Adams.“We anticipate a mid-May launch of this vitalservice.”

NATO praises LARefforts in Pakistan

After following the progress of the Luxembourg AirRescue (LAR) crew in previous issues of ITIJ, we cannow confirm their return from Pakistan after flying 925missions and transporting 2,112 people, includingpatients, refugees, medical teams and specialists. Thehelicopter was able to carry 20 tonnes of supplies andmedical equipment to the Kashmir mountainousregion after the 8 October earthquake devastated thelocal infrastructure, leaving thousands injured andwithout access to medical facilities. Luxembourg contributed to the NATO Disaster ReliefTeam in Pakistan with an MD Explorer Air Rescuehelicopter, assisted by Czech, Dutch, French,Portuguese and UK medics. They were highly praisedby NATO: “The Luxembourg MD Explorer is theworkhorse of the Air Mobile Medical Team. Its abilityto land in remote areas is phenomenal,” said a reportpublished on the NATO website.In a combined effort, the Air Mobile Medical Teamwas able to bring medical assistance and medicines toremote villages, most of which lack medical facilitiesand are not accessible by vehicle. In some cases, themedical teams were dropped by the Luxembourghelicopter and then had to use mules to reach theirdestination due to the rough mountain terrain.Thanks to these efforts, hundreds of lives were savedthat would otherwise have been lost due toearthquake-related injuries or disease.

LaPorte welcomes air ambulance teamAir Angels, an Illinois-based air ambulance service,has moved to LaPorte after five years of flying out ofSouth Bend Regional Airport. It originally startedflying for Memorial Hospital with a helicopter andcrew based at South Bend, but since Memorialofficials decided to change operators of the service,now called Medflight, Air Angels is unaffiliated with

any hospital.There are five air ambulance services serving theMichigan area: West Michigan Aircare, serving twoKalamazoo hospitals; Medflight, which is connectedto Memorial; Air Angels, which is a ‘free agent’; andtwo Samaritan choppers flying out of Rochester andFort Wayne.

Critically ill or seriously injured Alamosa residentsneeding more medical help than San Luis Valleyhospitals can provide will no longer have to wait forhours to be airlifted to Front Range hospitals. EagleAir Med, a Blanding, Utah, company that began in1979 as a scenic-flying service, but branched intoairlifting patients, recently established a base inAlamosa in the US.According to Eagle Air vice-president Jim Hunt, theseven-aircraft company focuses on smallcommunities. Ten Eagle Air Med employees will bestationed in Alamosa and the service will beavailable 24 hours a day. Eagle Air is licensed inUtah, Colorado, New Mexico and Arizona, thelatter being the base for the medical director.

Cindy Palmer, chief executive officer for SanLuis Valley Health Maintenance Organisation,and Russell Johnson, chief executive officer forSan Luis Valley Regional Medical Centre, alljoined forces to bring in the service. Accordingto Hunt: “It is unique to see an insurancecompany and an HMO working with a hospitalto bring in more medical services. We havenever seen that before.”Dr Norman Haug, administrator for the RioGrande Hospital in Del Norte, said it will takeabout 45 minutes for an ambulance from hishospital to bring a patient to the Eagle Air Medservice, which is based at San Luis ValleyRegional Airport-Bergman Field, but minutes canbe saved if the plane meets them at the MonteVista Municipal, 10 miles west of Alamosa.

Insurer and HMObring in air service

More accidents increase calls for reformAn additional crash has accelerated the growingconcerns across the US (and industry wide) that themedical transport helicopters are taking too manyrisks and need to be placed under federal control –similar to the way commercial airlines are regulated.The 2 February accident occurred when a thirdhelicopter company took on a request fromKokomo hospitals to fly injured patients to a traumacentre in Indianapolis – two previous companieshad already turned down the request. Both LifelineHelicopter and Good Samaritan Helicopter refusedto fly because of poor weather. But PHI air medicalgroup, one of nine medical air services operationsscattered throughout Indiana, accepted the call. The PHI helicopter took off from Anderson andencountered limited visibility and fog, according tothe police. Upon deciding the conditions were toodangerous, the pilot turned around, but as he didso, the helicopter crashed into the backyard of ahome off Ind. 32, a half-mile form AndersonMunicipal Airport.The pilot, Mark Bumstead, was treated for hisinjuries and was sent home. However, the nurseand paramedic on board both remain in

rehabilitation hospitals in Anderson and Indianapolis.It is unknown why the pilot took on the mission andthe Federal Aviation Administration (FAA) is yet todetermine the exact cause of the early-morningcrash. Shortly after the accident, PHI started a newsafety initiative, bringing in off-duty pilots to assist thecompany in developing a plan to monitor high-riskweather areas throughout the company. Thecompany has also announced plans to install nightvision goggles on its aircraft in Indiana.This reiterates the National Transportation SafetyBoard’s (NTSB) point in its recent report (ascovered in ITIJ 61), criticising the FAA for notenforcing improvements in medical air evacuation.The NTSB believes the FAA should require thenation’s 650 helicopter services to meet the samekind of safety and training requirements imposed oncommercial airlines.From the mid 1990s to 2004, the number ofmedical helicopter crashes in the US nearlydoubled, according to the FAA, in part because ofrapid growth in the industry. From 2002 to 2005,55 medical aircraft accidents in the US resulted in55 deaths, according to the NTSB.

ITIC to includeextra AA sessionsDue to popular demand, the International TravelInsurance Conference (ITIC) in November willfeature a number of days dedicated solely to theair ambulance industry. Day one will include twopanel sessions and each session will consist ofthree speakers from within the industry, coveringsubjects such as regulation, accreditation andworking practice.Day two will see three important focus groupsessions where opinions can be aired and shared.Group one will comprise the air ambulancemedical directors forum, group two willinvestigate research and statistics, while groupthree will tackle medical malpractice. Additionalitems may be added to this agenda.

International Travel Insurance Journal www.itij.co.uk

AIR AMBULANCENEWS18

HAA suffers secondfatal crash

The helicopter industry is experiencing a boom,with more than 900 new civilian rotorcraftdelivered last year, according to the AerospaceIndustries Association, and manufacturers arein jubilant mood. However, as Robin Gauldiereports, an increase in accidents has blightedthe industry

Rolls Royce predicts demand for more than5,100 new rotorcraft worldwide over the nexteight years, while Honeywell foresees a need foras many as 5,500 by2015. Most of theseaircraft will be destinedfor use in NorthAmerica and Europe.The move is beingdriven as much bysimple arithmetic asanything else, as clientsin the emergencymedical service (EMS),government, policedepartments andoffshore support operators move to update fleetsof elderly aircraft that have depreciatedsufficiently to make replacing them viable – evenmandatory – in accounting terms. Manufacturers,including Bell, Agusta Westland, Eurocopter andSikorsky, have reported increased orders fromcustomers worldwide.In the aeromedical sector, there is a clear needfor more aircraft, with the US NationalTransportation Safety Board (NTSB) estimatingthat EMS helicopters flew some 300,000 hoursin 2005, compared with around 160,000 15years ago. But there has been a downside to thisexpansion, according to the NTSB, with aworrying increase in the number of accidentsinvolving aeromedical rotorcraft and fixed-wingaircraft, while more stringent safety regulationsfor emergency medical service flights could meanhigher costs for insurers.US EMS operators, aeromedical organisations andgovernment agencies have been deeplyconcerned about the high level of accidents formore than a year now, and it has become clearthat some serious action is needed. These are notisolated incidents, but an endemic problem thatneeds to be addressed in the very near future.There have been 64 such accidents in the USover the last four years resulting in 78 deaths and18 serious injuries, prompting the NTSB torecommend a string of changes to safetyregulations, forcing all emergency medical flights(not just flights carrying a patient) to comply withthe Federal Aviation Administration’s Part 135regulations. These rules limit the amount of timeair crew and medical staff can remain on duty, aswell as prohibiting aircraft from making positioningflights on instrument flight rules to airports that arenot part of the FAA’s weather reporting system –

in other words, banning them from flying to suchlocations in poor visibility conditions. The NTSBalso flagged up the need for EMS dispatchers tobe trained in proper aviation dispatch formalitiesand flight procedures, identifying the lack of suchtraining as a contributing factor in one in five ofthe recent accidents.All of this appears to be simple common senseand it is nonsense for a flight carrying medicalstaff and aircrew to operate under laxer rulesthan a flight with a patient on board. Complying

with Part 135 rulesshould involve onlyminor costs for aeromedical operators.But in the risk-averseenvironment of 21stcentury USbureaucracy, couldtighter regulationshamper aeromedicaloperations?The rules on flying oninstruments may have

an impact on some positioning missions. Almost bydefinition, numerous aeromedical emergenciestake place in poor weather conditions, but rulingout IFR may make it impossible to fly medical staffto such an emergency.The NTSB’s solution is to require aero-medicalrescue aircraft to be equipped with terrainawareness warning systems (TAWS), which theNSTB says could have prevented a number ofthe recent accidents. A significant number ofthese involved what aviation safety expertschillingly call ‘controlled flight into terrain’.However, the US Association of Air MedicalServices (AAMS) says equipping America’s ever-growing EMS fleets with TAWS will be extremelyexpensive – at a cost that will inevitably be passedon to insurance companies and their clients andmay not be as useful as the NTSB thinks.“It is important to remember that these servicesoperate a life-saving mission, and that missioninvolves some risk,” an AAMS statement pointedout. “The task of these safety initiatives is tomitigate as much of the risk as possible, while stillserving the mission of critical patient care.”Aeromedical industry representatives arescheduled to meet Federal Aviation Administration(FAA) executives in March for a summit onweather reporting needs and how the FAA canadapt to meet the EMS sector’s special needs.Despite the FAA’s penchant for exporting itsregulations around the world, tightening up therules in the US is unlikely to have much of aknock-on effect in Europe – where, in general,aeromedical aircraft operate over shorterdistances and in less extreme weather and terrainthan in much of North America. Moreimportantly, regulations are, in most Europeancountries, already tighter than in the US.

Can new rules improve safety?

A significant number ofaccidents involved whataviation safety expertschillingly call ‘controlled

flight into terrain’

A Hawaii Air Ambulance (HAA) plane recentlycrashed into the parking lot of a BMW autodealership killing all three people on board. Theplane, a twin-engine Cessna 414, crashed on 8March near the busy Hana Highway, around 7.15p.m. No one on the ground was hurt.Chairman and CEO of Hawaii Air Ambulance,Andrew Kluger, identified the dead as pilot PeterMiller, 32, of Kailua; Brien Eisaman, 37, a registered

nurse and assistant chief flight nurse, ofWaipahu; and Marlena Yomes, 39, aparamedic and Honolulu base stationsupervisor of Waianae.Anita Lucas-Legg, HAA’s chief flight nurse,said of those who died: “Yomes hadtremendous experience, and was quite ateacher, and truly, truly functioned with apassion. Brien came to us with quite alength of experience, and is just atremendous loss. And Peter, just anexcellent pilot. I flew with him many times

and he was truly an inspiration for the company.”Andrew Kluger extended heartfelt sympathies to thefamilies on behalf of the staff and crew at Hawaii AirAmbulance, but would not speculate on the causeof the death. The plane departed from Honoluluand was scheduled to land at Kahului Airport at 7.10p.m. to pick up a patient. The NationalTransportation Board is to investigate the cause ofthe death. In the meantime Kruger said that thecompany would keep flying and providing airambulance services.With two crashes in two years for HAA, resulting insix fatalities, some local nurses and paramedics saythey have safety concerns about returning to flyingwith the company. HAA planes were grounded forsafety inspections following the latest crash. Klugersaid this was carried out for employees’ peace ofmind – not for any legal reasons.

Sudan operationsfor Flying DoctorsAs Sudan, especially the southern regions, continuesto open up for redevelopment, Flying Doctors hasbeen appointed as aeromedical evacuation supportby over 14 International Agencies, including theUnited Nations.With direct access to many areas in South Sudan andfast tack clearances to other government-controlledareas, Flying Doctors has evacuated patients fromareas such as Rumbeck, Yei, Juba, Yambio, El Obeid,El Fasher, PortSudan and thecapital,Khartoum.A special‘FLYDOC’ callsign, granted bythe InternationalCivil AviationOrganisation,has helped tospeed up theprocess of flight clearances. On a case-by-case basis itis even possible to obtain a clearance for FlyingDoctors aircraft to fly without transiting a Port-of-Entry, but this cannot be guaranteed and can takesome time to organise. Typical constraints in southernSudan include many airstrips operating in daylighthours only and the effect of weather on many of thebush-aircraft-only strips.With regards to long-distance flights, the FlyingDoctor Service continues to stretch its reach andduring the last few months has completed severallong-distance medivac flights in the Cessna CitationBravo jet. These include destinations such asDüsseldorf, London, Madrid, Milan, Tel Aviv andBrussels. The longest flight was from Johannesburgto Germany and then via wing-to-wing transfer tothe US. The patient arrived safely and, following heroperation, is reported to be recovering well.

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NEWSANALYSIS20

According to the American CivilLiberties Union, government cannow pry into your reading habits,where and how often you go tochurch, which medications you use,all in the name of fighting terrorism.It can also tell whether you fly firstclass or economy, what kinds ofmeals you order and what kinds oforganisations you belong to.Knowing this, the great majority ofAmericans have responded with abig ‘so what?’. To them the PatriotAct, which also gives federal officialsgreater authority to track andintercept communications, fightforeign money laundering, closeborders to foreign terrorists androot out those terrorists andaccomplices already within, is aperfectly reasonable response to9/11 and the terrorist threats thathave since proved real – poll afterpoll shows that. And even five yearslater, when certain parts of the Actcame up for congressional renewal,the same politicians who had beencriticising it, voted overwhelmingly inMarch 2006 to extend it. TheSenate voted 89 to 10 in favour.The Patriot Act, however, continuesto attract attention domestically, andinternationally, not so much for whatit is (which is largely an expansionand refinement of laws already inplace), but for its widespreadcharacterisation as a weapon, ratherthan a protective shield.And nowhere is that characterisationmore acute than in Canada, which isseparated from the US by anamorphous, sometimes totallyinvisible, 5,000 plus mile border –crossed every day by $1.5 billiondollars worth of commerce, and 300,000 of its ownresidents and US visitors.

Good neighboursCanadians chafe at Americans’ characterisation oftheir northern neighbourhood as being a haven andstaging area for terrorist cells that can easily driftback and forth into the US. The memory is still freshof the arrest in Washington State in 1999 of AhmedRessam, an Algerian who entered Canada with aphony passport and later tried, unsuccessfully, tocross into the US with a car load of explosivesdestined to blow up Los Angeles InternationalAirport. On coming to Canada the first time,Ressam’s passport was spotted as phony but heapplied for refugee status and was admitted. TheCanadian Immigration Minister at the time said of hiscase that presenting a false passport was not aserious offence, that many legitimate refugees do

the same.Immediately following 11 September 2001, newsreports that some of the hijackers might haveentered the US from Canada resulted in Parliamentquickly passing its own Anti-Terrorism Act withpowers not unlike those in the US Patriot Act.Much of the world’s agitation about the Patriot Acthas to do with the impetus it has given to tougherborder admission procedures, demands forinformation about inbound airline passengers, eventhose not actually landing in the US, but just passingthrough its air space, and access to ‘private’information about foreign nationals who may or maynot have some resemblance to terrorists, or thosejust going about their daily business whose personalprofiles are exchanged across borders without theirknowledge – sometimes to their great distress.When Maher Arar, a 35-year old Canadian citizenborn in Syria was intercepted at JFK International

airport in New York by US authorities and deportedto Syria on suspicion of having ties with al Qaida, itbecame headline news for months in the Canadianmedia, where it was reported as evidence ofPresident Bush’s ‘hidden war on terror’ andattributed to Patriot Act bullying. Except that theprovisions that triggered the interception anddeportation had been around for decades. TheForeign Intelligence Surveillance Act (FISA) waspassed in 1978 to help authorities conduct

surveillance of people threatening the nationalsecurity. Most of the Patriot Act had to do withupdating and expanding FISA. Arar, who claims hewas subsequently tortured by the Syrians, was onroute through New York, to Ottawa from Tunisia,where he had been vacationing with family. It wasalso subsequently revealed that he was interceptedon the basis of information provided by Canadianauthorities who, according to Arar’s lawyers, weretrying to impress on the US that they were tough

on terrorism.Another source from the travel industry noted thatone of his clients was arrested when deplaning inMexico for a vacation with his family and returned toCanada at the insistence of US authorities, all madepossible by an international sharing of PassengerName Record (PNR) information about passengersflying into or over the US. It turned out to be amistake.In 2001, federal legislation allowed Canadian airlinesto provide foreign governments with ‘anyinformation relating to persons on board orexpected to be on board the aircraft and that isrequired by the laws of the foreign state’. Thispredated the US announcement in March 2003 thatit would require all international airlines to providesuch information. Since then, several nations haveput similar passenger reporting requirements inplace. In 2004, a Spanish proposal that all airlines

Since being signed into law by President George Bushin October 2001, the US Patriot Act has become alightning rod for civil libertarians and privacy advocateswarning that Americans and foreign nationals were atincreasing risk of having their basic freedoms invadedin the name of anti-terrorism. Milan Korcok investigates

Much of the world’sagitation about the Patriot

Act has to do with theimpetus it has given to

tougher borderadmission procedures…and access to ‘private’

information about foreignnationals

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NEWSANALYSIS 21

operating to, or within the EU, be required tocollect and transmit to the governments ofdestination countries similar information wasadopted by the Council of the European Union.

Abuse casesAs sad as cases about overzealousness ormisidentification are, extraordinarily few that can beattributed directly the Patriot Act have beenreported. Even such adversarial legislators asDemocratic Senator Diane Feinstein of Californiahas reported never having seen a single case ofabuse of the Patriot Act forwarded to her, andDemocratic Senator Joseph Biden of Connecticutcontinues to support most of the Act, but admits itsometimes gets tangled up with other policies thatonly harm the US’s reputation. Another cause celebre was the proposedoutsourcing by the British Columbia (BC)government of accounts payments rendered byhealthcare professionals under the provincially runmedical services plan to a US company. The publicservice union opposed the plan because it wouldmean a loss of jobs but it based its opposition onprivacy concerns saying that the US Patriot Actwould allow US law enforcement agents to get at

personal information being processed by US-linkedservice providers without the knowledge or consentof the individuals whose information was beingstored. Ultimately the BC Supreme Court ruledagainst the union and concluded that all reasonablesteps to ensure the confidentially of the informationhad been taken. It added: “Privacy rights are notabsolute. They must be balanced with other publicpolicy considerations.”In response to the cyber privacy issue generally, andthe BC case specifically, the Information TechnologyAssociation of Canada (ITAC), which representsmuch of the nation’s burgeoning information andcommunications technology industry, wrote: “Indealing with the US Patriot Act or with the broaderquestion of cross-border flows of data, it isimportant to remember that cross border data flows

are a pervasive characteristic of modern life,whether in personal matters or in the operations ofbusinesses and public institutions.”It also noted that when BC passed some of theworld’s most stringent laws protecting individualprivacy, it did so at a price: “It has been the

experience of ITAC’s members that the BC law hasled to more complex and time consumingprocurements, fewer service providers bidding ongovernment business, and increased costs indelivering services to governments. In turn, it is likelythat the government is devoting more time andresources to procuring goods and services, while

facing increased costs in delivering service to BritishColumbians.”In short, concluded ITAC, privacy requires tradeoffs: “We routinely make purchases and transmitpersonal information around the world through theInternet. We send emails to friends and relatives and

we make travel arrangements and reservationsonline. When we travel the world, we expect ourcredit cards and bank cards to be useable almosteverywhere we go.”In her annual report for 2003, Canada’s PrivacyCommissioner, Jennifer Stoddart, admitted that“Canada’s border security is becoming integrated

with US border security. Canada and the US havecreated several integrated border enforcementteams. We share watch lists and the government ofCanada has been under pressure to shareinformation with the US government about allpeople travelling to Canada from abroad.”She added: “Smart borders require the collection ofpersonal information – large amounts of personalinformation. This information is used to verifyidentity and to determine who should be allowed toenter the country without scrutiny, who needs to bewatched and who should be refused entry.”

Low impactAddressing the US Patriot Act specifically, RegAlcock, former president of Canada’s TreasuryBoard, testified in 2004: “To date, the Government(of Canada) has determined that the US Patriot Actwill have no impact on the privacy of the vastmajority of Canadians.”He added that 84 per cent of governmentinstitutions have classified their own risk vis a vis theAct, as either no risk, or low risk. As an example oflow risk Alcock cited: “A contract with Sun LifeAssurance Company of Canada related to the PublicService Health Care Plan (PSHCP) and the DisabilityInsurance (DI) Plan. Sun Life uses the services ofWorld Access to adjudicate out of country (travel)and comprehensive claims for PSHCP. AlthoughWorld Access Canada does not normally sharePSHCP data with its US counterpart, the currentarrangement allows for calls to be transferred to theRichmond, Virginia, office in the event of a disasterin the Waterloo office. In such circumstances,temporary access would be granted to the US officeto ensure continuity of service to Canadians.”Whether as a club or a shield, there is little reportedevidence that the Patriot Act itself, distinct fromother legislative, enforcement or bureaucraticactions, can be blamed for seriously impeding trade,tourism or good relations between the US andother nations.

The Patriot Act, which alsogives federal officials

greater authority to trackand intercept

communications… closeborders to foreign terrorists

and root out thoseterrorists and accomplices

already within, is aperfectly reasonableresponse to 9/11

International Travel Insurance Journal www.itij.co.uk

WORLDMARKETS22

Slovakia Why has the tiny nation of Slovakia, population just5.3 million, been so quick to rush into EuropeanUnion membership, with accession to the Eurozonenow firmly on the cards for an expected 2009adoption? The benefits have been clear, havinghelped soften what could have been a painfultransition from the command economy of theCommunist era to the demand economy of the freemarket.Living standards have soared, disposable income hasrocketed and today Slovaks not only host more thanhalf-a-million visiting tourists each year, but arethemselves travelling abroad in ever increasingnumbers from their homeland right at thegeographic centre of Europe.Low-cost flights now connect Slovakia with majordestinations in Europe and beyond, while road andrail links are first-rate. Not only is Bratislava Airportincreasingly busy, but the Austrian capital of Vienna,less than 60 kilometres away – with a direct busservice to that city’s Südbahnhof station; whileVienna International Airport, at Schwechat is evencloser, at 45 kilometres – provides Slovakians with asecond, just over the border, transport hub option.Outbound tourists favour the Mediterranean sun,sea and sand resorts, but demand for more exoticdestinations, such as the Caribbean, South East Asiaand both north and southern Africa, has beengrowing as people become more affluent. The ever-widening range of outbound budget flights offeredby SkyEurope has created a buoyant city shortbreaks market. This aggressive, fast-expanding low-cost airline had recently placed an order for no lessthan 26 Boeing 737-700 aircraft to add to its alreadysizeable fleet. From its three hub airports of

Bratislava as well as those in neighbouring Hungaryand Poland, Budapest and Warsaw – the companyalready serves 18 destinations in 12 countries. At low cost, Slovaks can now easily visit such placesas Burgos, Zurich, Athens, Amsterdam, Nice,Manchester and Dubrovnik, as well as fly from theirown regional airports at Kosice and Poprad. ThePolish city of Poznan, for example, receives aSkyEurope flight from Bratislava seven days a week.

AcceleratedgrowthBesides thecompeting low-costairline easyjet, othercarriers offeringservices out ofBratislava include AirSlovakia, SlovakAirlines, Aeroflot,Aeromost andLufthansa. Since 1999, therehas been a 142 per cent increase in flying volumesto just under one million passengers, representingsome SKK2billion (US$65 million) in revenues. Inthe decade since 1999 volume sales, includingflights, bus and rail transport services, rose from onemillion to three million passengers.Bus and coach services remain a very importantsector for both domestic tourists and arrivals fromthe neighbouring countries, though the moreexpensive railways suffer weak demand. Meanwhile,water transport on the River Danube is a minisculepart of the infrastructure, but there has been strong

growth in the river cruise market. The countrycurrently has 3,360 kilometres of railroad track, withtram and light railway networks operating inBratislava and Kosice. There are close to 43,000kilometres of roads, mostly well engineered andnow acceptably maintained. Some 460 kilometres ofmotorway are currently coming on-stream, thanksto European Investment Bank funding.In 2004, some 782,000 Slovaks travelled abroad

and, while the finalfigures are currentlybeing compiled, thereis every indicationthat 2005 saw furthergrowth and that 2006will prove evenbetter. However,passenger numbershave yet to return tothe levels theyreached in the headydays immediatelyafter independence

and during the economic reform period from 1992-2002 that paved the way for accession into theEuropean Union.Domestic tourism has also suffered, with the level oftrips recorded in 2004 at just two million, anincrease of only 100,000 over the 1999 figures. Thisis down to two factors: cautious discretionaryspending at a time of uncertainty and rapideconomic changes – a factor that has also led to thegrowth of short-term breaks at the expense of oneor two-week holidays – and secondly the fast-risingaccommodation prices that have been fuelled by

demand from incoming tourists.Increasing per-capita spending by visitors hasbecome a matter of priority in a nation that seestourism as a potential major contributor to the GDP.A million inbound visitors in 2004 represented atwo per cent increase in arrivals, but theircontribution to the Slovak economy was just threeper cent – a low figure compared to what is nowbeing achieved in neighbouring Poland, Hungary andthe Czech Republic. Most of these arrivals were onshort breaks lasting an average of four days. Themost popular destinations for both incoming anddomestic tourists were spa and mountain resortsplus, of course, big city Bratislava – a historic capitalthat still reeks of the ambience of the glory days ofthe Austro-Hungarian Empire when it followedclose behind Vienna, Budapest and Prague inimportance.

Buoyant salesThe travel agency sector is at present buoyant, withsome 2,235 offices, fuelled by the rising localdemand for both package holidays and flight onlybookings. Agents see travel insurance as a usefulsecondary income stream. The sector today has asales value of more than SKK 20 billion (US$651million). Better service and more aggressivemarketing have been key to growth for theoutbound side of things. When it comes to inboundbusiness, the key problem remains the country’slow profile.“The only thing I know about Slovakia is what Ilearned first-hand from your foreign minister, whocame to see me in Texas,” then state governorGeorge W Bush told a Slovakian journalist who

After centuries of subservience to various larger nations, Slovakia finally tastedindependence in 1993 as a result of the so-called ‘Velvet Divorce’ that, in a thankfullybloodless revolution, brought to an end the arranged marriage that back in 1918artificially created the country of Czechoslovakia – an arrangement in which the Slovakshad been very much the junior partners. Roger St Pierre finds out what happened next

interviewed him in 1999. The problem was, theminister concerned came from Slovenia (formerlypart of Yugoslavia), and not Slovakia! It can, though,be very confusing, for there is also Slavonia, which isnot a country at all but a region of Croatia. For therecord, the Slovak Republic, to give the country itsproper title, is a land-locked Central Europeandemocracy sharing land borders with Austria,Poland, Hungary, the Ukraine and the CzechRepublic. Over the centuries ithas known occupation by theHungarians – of whom600,000 still reside within itsborders, mainly in the westand central parts – and, briefly,the Turks and, in the SecondWorld War, the Germans, thelatter turmoil leading todomination by the Czechs andtheir Soviet masters.Once regarded merely as aprovince of Greater Hungary,Slovakia was part of theAustro-Hungarian Empire thatonce dominated CentralEurope. Harsh economicpolicies in the late 19thCentury that strongly favouredHungarian immigrants andpenalised Slovaks saw theincomers actually outnumberthe locals in the country’s majorcities, while the massivediaspora of disadvantagedSlovaks meant that at one stageBudapest had become the citywith the largest Slovakianpopulation. Between 1899 and 1913, closeon 400,000 Slovaks emigratedto the US and today close ontwo-million American citizensdeclare themselves to be ofSlovakian bloodstock. When theAustro-Hungarian Empirecollapsed at the end of WorldWar One, the nation was, as part of theunsatisfactory Versailles Peace Treaty arrangements,wedded to the Czech regions of Morovia andBohemia, plus a sliver of Silesia, to form the newcountry of Czechoslovakia.In 1939, the Nazi dictator Adolf Hitler first annexedthe German-speaking Sudetenland then occupiedthe rest of Czechoslovakia, before hiving off Slovakiaas a short-lived puppet state. When the Russiantroops arrived in 1945 Czechoslovakia was cobbledback together again and in 1948 the Communistscame to power and placed the country firmly underSoviet domination.

Velvet RevolutionAs the Eastern Bloc crumbled with the dawn of the‘90s approaching, first Czechoslovakia asserted itsindependence from Russian influence in thebloodless uprising known as the ‘Velvet Revolution’,which, in November 1989, succeeded where the1968 ‘Prague Spring’ had so tragically failed. Then, inthe immediate aftermath of this momentous event,the Slovaks seized the moment and, in 1992, filedpapers for the ‘Velvet Divorce’ which saw them andtheir Czech neighbours peacefully go their separateways in the spirit of self-determination guaranteedby the United Nations Charter and the InternationalDeclaration of the Rights of Man. A new Slovakconstitution, adopted on 1 September 1992, cameinto force with independence in January 1993, withthe first parliamentary elections of the new countrybeing staged the following year.Right from the outset, the Slovak Republic was anassociate member of the European Union. Fullmembership was applied for in 1995, formalnegotiations began in 1999 and accession took placein 2004, when the country also joined NATO.Slovakia is a member nation of the InternationalMonetary Fund, the World Bank and the EuropeanBank for Reconstruction and Development. Ruledby a single chamber National Council of 150members, elected for a four-year term, Slovakia is aparliamentary democracy. The president is directlyelected by the people for a five-year term andappoints the prime minister, who is normally the

leader of the political party with the largest numberof seats in parliament. It is a small country of some 48,845 sq kilometres,measuring just 416 kilometres from east to west and208 kilometres north to south at its widest parts.Second in West and Central Europe only to themighty Alps in height, the country’s beautiful HighTatry (Tatra) Mountains, straddling the border withPoland, match with rolling hills and lush river valleys

to create a rural idyll deeply rooted in tradition,where folk culture, song, dance and arts still flourish.But at the same time this is a modern country with asizeable industrial base. Close to 60 per cent of thepopulation today live in urban areas. They arepredominantly (60 per cent) Roman Catholic byreligion though there are sizeable Protestant andOrthodox minorities and around 30 per cent areeither atheist or agnostic.Responsible in the 15th Century for 40 per cent ofthe world’s gold production and 30 per cent of itssilver, Slovakia today has sizeable iron, zinc, lead,copper and manganese deposits and large forestresources for wood and paper production. Thereare also large reserves of lignite (brown coal) andnatural gas. Chemicals, consumer appliances,plastics, fertilisers, rubber products, ceramics,machinery and armaments are among keymanufactured products. At one time some 10 percent of the workforce was employed in the defenceindustry, but a decision was made soon afterindependence to reduce this. Other industries wereuncompetitive in the modern world and whenpolitical instability was factored in, this led to verytough times, but the country has come through adifficult first decade and emerged in a much healthierposition, with GDP growing by 4.2 per cent perannum, while inflation has already dropped fromabove 20 per cent to below 11 per cent.Around 45 per cent of the labour force is nowengaged in the service sector, which continues togrow in importance. Thirty-three per cent work inmanufacturing and 12 per cent on the land, whileunemployment has been hovering around the 10per cent mark for more than a decade. The countrybenefits from an excellent higher education systemand the population is highly literate (around 99.6 percent), skilled, efficient and productive. Lifeexpectancy at birth is 70.52 years for men and76.68 for women. The present median age of thepopulation is 35.43 years and population growthrate stands at a modest 0.15 per cent. Some 71 percent of the population is of working age (15-64).Currently, average monthly pay-slips are aroundUS$400 after mandatory state deductions and there

is a comprehensive social security system in force.

Enterprise effortsWhere everything was once state owned and run,the return of enterprises to private ownership hadbeen hampered by the lack of transparency in theprocess and consequent allegations of corruptionand favouritism. However, the private sector nowaccounts for 80 per cent of GDP and, importantly,the dire predictions of economic collapse made bymany at the time of gaining independence from themore dominant Czech side of the two nation unionproved false and the country has proved more thancapable of standing on its own two feet.Imports and exports are each now valued at aroundUS$6 billion, with 30 per cent of imports comingfrom the Czech Republic, which is still the country’smost important trading partner, consuming 40 percent of its exports. Austria, Germany and Russia arethe other main trading partners.Between 2001 and 2004, the Dzurinda governmentcarried out major structural reform of the economy,which has paid off. A 15 per cent flat-rate incometax regime, labour market liberalisation andbusiness-friendly legislation have all helped and as aresult Slovakia exceeded everyone’s expectationsand has expanded it economy over the past half-decade despite the general European slowdown. Current purchasing power parity of the averageworking Slovak citizen is US$15,700 per annum.GDP at the official exchange rate stands at US$85.14billion. Some 11.5 per cent of the population iscurrently living below the official poverty line. Majorforeign companies have placed faith in Slovakia –Volkswagen (30,000 cars annually), Whirlpool,Siemens. Rhône Poulenc, Henkel and Philips have allestablished manufacturing facilities there, while, in thebanking sector, Crédit Lyonnais, Citibank andCreditanstalt are all highly active. Most of the bankingsector is now in multinational hands and foreigninvestment is substantial in other sectors too.Strong personal relationships and the building oftrust are crucial for those seeking to do business in acountry that still suffers some of the bureaucracy

associated with the Soviet era, but which is anxiousto learn and modernise. Business meetings will likelystart with a shot of slivovica (plum brandy) and atoast, while general social conversation is expectedbefore getting down to serious business. Yourpartners are more liable to speak German orRussian than English, but that balance is changingrapidly and communications are improving apace,though it might still be necessary to employ theservices of a translator to avoid misunderstandings. Itis also wise to follow up meetings with a writtensummation of what was discussed.The telephone system is antiquated, which canmean disrupted calls and mis-routed faxes, butthings are rapidly improving as digital exchangesreplace analogue ones and, with more than 1.5million users, high-speed Internet usage is expandingfast. So too is credit card usage, but it is wise toalways have cash to hand. Prior to independence,insurance in Slovakia was a state monopoly. Theindustry has come on a long way since then. Thingsgot rolling with the 1991 repeal of the existingdecrees on insurance terms and conditions and thecodifying of the legal regulation of insurancecontracts for all entities into a single law under theCivil Code.Since then, Slovak legislation has kept pace with EUdirectives on insurance criteria. The Ministry ofFinance, which is the regulatory body, and theNational Bank of Slovakia, which acts as supervisor,have been working with the Slovak Association ofInsurance Companies and the insurance industry asa whole to ensure that the industry has a soundlegal underpinning. Today, it represents a small butpotentially profitable market for insurers seeking toexpand into the new nations of the EU.In March, the country surprised analysts by joiningthe Exchange Rate Mechanism ahead of predictions.Presenting his budget for 2007-2009, financeminister Ivan Miklos revealed that this move, alliedto the proposed budget and forecasts for the Slovakeconomy meant that Slovakia will be able to meetall the Maastricht criteria in 2007 and will be readyto introduce the euro in 2009, as planned.

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WORLDMARKETS 23

Prior to independence, insurance inSlovakia was a state monopoly. Theindustry has come on a long way

since then. Things got rolling with the1991 repeal of the existing decreeson insurance terms and conditions

and the codifying of the legalregulation of insurance contracts for

all entities into a single law

To better understand the relationship betweeninsurance companies and assistance providers, weneed to consider costs against the needs of theinsured person, who in the main will never haveeven heard of medical assistance, let alone knowanything about the company that provides theservice. However, in the event of an incident(whether it is bereavement, accident or illness) theinsured person will put their complete faith in theassistance company and to a certain degree see it astheir lifeline.Considering the above (and more), the world ofmedical assistance may now look like a minefield, sohow do insurers ensure they have chosen thecorrect provider, which will not only provideexcellent service to the insured person, but alsomitigate losses and protect brand value?This may not be an issue for a number of the majorplayers in the UK market as the dynamics havechanged over recent years with more and moreinsurers looking for the all-inclusive service orperforming as many functions as possible in-house.You only need to look at the members of the BritishMedical Emergency Services Forum (BMESF) andyou will see that at least six of the members areactually owned by an insurer or parent company.

Staying in-houseSome larger insurers are choosing not to lookoutside the group for an assistance provider andwhen you look at it from an insurer’s point of viewyou can fully understand why they would want tokeep the business in-house, but does that allow theinsurer to have an input of how the service isprovided? According to Fiona McDonald, head ofunderwriting at Europ Assistance, it gives themgreater control as they are able to influenceprocedures and, due to a close day-to-day workingrelationship, they actually become more involved incases and make real-time decisions. She also feels itenables her as the underwriter to remind theassistance department whose money it is that isactually being spent. However, McDonald is keen to

emphasise that there is a balance that needs to bestruck between servicing the insured’s needs andprotecting the insurer’s money.There is still a sizeable independent assistancemarket and it does not necessarily only service thefew independent insurers left in the UK market.One of the leading insurers, who also has anassistance arm, advised that, while it was theirpreferred option to use their in-house assistancedepartment, they would go outside of the group onoccasions. This may be due to a previous businessrelationship or possibly as a benchmark against in-house services. But to get group acceptance of thisthere would have to be an excellent business caseto support the decision.Exactly how a new assistance company may be

chosen will be different for each insurer; it may beby existing relationships, recommendations orthrough a tender process. Unfortunately, there is noactual independent body that regulates who tradesas an assistance company or how they work, sopotential clients cannot obtain information this way.While the BMESF does important work for thetravel insurance industry, it is fundamentally acommittee where common issues are aired andsolutions suggested where appropriate; it is self-regulated and self-funded and has no powers andfor obvious reasons could not advise insurers onindividual assistance companies.There are various other accreditations that individualcompanies may choose to follow such as ISO, TheGood Corporation Standard or even the Civil

Aviation Authority; so once again there is no oneindividual accreditation system. There may be a wildvariety of requirements to obtain accreditation fromany of the above, but there are also a number ofcompanies that chose not to obtain any.

Balanced choiceWhat then are the key requirements when lookingfor an assistance company? Interestingly, thereappears to be the same criteria whether looking in-house or externally in that operational capacity iskey, balanced alongside cost control and medicalmanagement. The balance between capacity on theone side and control and management on the otheris extremely fine, and besides, all companies willclaim to do it. However, the actual function of

International Travel Insurance Journal www.itij.co.uk

FEATURE24

The function of medicalassistance may be taken forgranted as something thathas to be offered within atravel policy by insurers.However, the ultimate coststhat an assistance companymay guarantee or incur onbehalf of the insurer can beimmense. Julie Remmingtonexplains the finer details

✔ Making the right choice

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FEATURE 25

assistance has become moredissolved in recent years and,while some will argue it hadto, opportunist suppliers haveseen gaps in the market andutilised them. Gone are thedays when assistance co-ordinators were alsoresponsible for booking flightsthemselves or arrangingdirectly with funeral directors(both local and abroad) torepatriate a body. Of coursewe can argue these arespecialist skills and thereforethere is the need for expertsbut are there additional costs?Not everyone will besubjected to the whole realmof additional costs, as theservices may be provided bygroup companies, but therecould be some additional costsalong the way. If you considera case that would include astay in hospital as an in-patient,this can lead to the need for medical escorts to beused, which will lead to additional flights beingarranged and possibly additional accommodationand road transfers. However, the costs do not stopthere if an external medical escort is used – not onlydo insurers pay for the time the doctor is working,plus accommodation and sustenance, but it is alsonot uncommon for a call-out charge for either thedoctor or nurse, plus additional charges forequipment.Those call-out charges can be as much as £100 fordoctors and £30 for a nurse. Add to this the chargemade by the ticketing agent, which can be morethan £60 per booking, and, including the actualassistance case fee, an insurer can have alreadyincurred costs over £300 for administrating theservices before even considering the more obviouscosts, such as hospital fees.The additional fees are fine if the insurer knows tolook out for them and factor them into the pricingand the vast majority of suppliers in the industry doan excellent job. Unfortunately, all too often insurersdo not consider the level of the additional fees,which has a negative effect on the performance ofthe account and relationships can become strained.Thankfully, insurers are becoming more educatedon the claims and assistance side and it is far more

normal these days for regular review meetings andaudits to be held. By far the most common theme that comes upwhen talking to insurers about the selection of theirproviders is honesty. Not only in pricing (thankfully inthe main the days of back-handed commissionsappears to have ceased), but how the service isprovided and the flexibility to try new things. Someinsurers also prefer to select providers such as costcontainment companies themselves and assistancecompanies need to be flexible to accommodate that.The way assistance fees are charged is another areathat some insurers feel needs to change, as insurersstill find that some assistance companies can beinflexible in the way they charge. The most commoncharging model is a fee for the service that isperformed, but some insurers would prefer percapita rates paying a fee per insured person. Someinsurers feel this is easier for them to price products,but few assistance companies are prepared toconsider this option. Costs for the service providersmay also need to change and certainly someAmerican cost containment companies are alreadyworking on new ways of pricing their services, notonly to allow the underwriter to estimate the actualmedical costs better but to support the function theyprovide.

Future changesIt is difficult to foresee how the role of medicalassistance may change in the future, butexpectations have to be realistic. For people who

have never worked within the arena, itcan be hard to actually appreciate what thestaff have to do on a day-to-day basis.They actually have many masters – theinsured will see them as being there fortheir sole purpose and they also have todeal with distraught and difficult people,while also serving the pay master (theinsurer) by providing first-rate customerservice and keepingthe costs down atthe same time.Most of the timeassistancecompanies do anexcellent job for theinsurer, but what doassistancecompanies feel isthe main problemscaused by insurers?Opinion on thisdiffers greatlydepending on whom you talk to. Somewill say insurers try to get involved inthings that assistance companies see astheir remit. Others feel that the lack of

data as to who exactly is insured is an issue.It is amazing to think that some underwriters have notmoved on since the early 90s and are unable toprovide data on the policies that have been sold.However, by far the biggest issue appears to be overclaim declinature. When one independent assistancecompany was asked what was the main probleminsurers cause, the answer was the amount of time ittakes to deny coverage on claims. They also went onto state that it can be very frustrating when they havewaited days for a response from an underwriter, tothen advise the insured and take the initial blame only

then to be contacted some time later by the insurer toadvise that the insured has complained and to protectthe brand value the claim will now be honoured.Finally, Steve Hook, Director of Travel andCorporate at Mondial, raises an interesting pointand one that is surely the most important aspect ofassistance – communication with the insured. AsSteve advised, assistance companies may beexcellent in answering the phone, obtaining themedical reports, repatriating the insured and finallycost containment, but if they are not in regularcontact with the insured, all that hard work isundone and a potential complaint is instigated. Themain piece of advice Steve offers to the assistance

co-ordinators at Mondial is‘put yourself in the shoesof the insured’. When youthink about this you cansee where Steve is comingfrom: generally, the insuredwill be in a foreign countrywhere they do notunderstand the language,have no idea of how,when or where to pay thebills, and are most likelyvery scared about what ishappening. Just because

assistance co-ordinators do the job day in day outthey have to remember to set the expectations ofthe insured, and when they promise a call back theyshould ensure that it is delivered, even if there is nonews to give.Whilst the market may be split into two differentcamps on the use of medical assistance – either in-house or independent – this is always evolving anddecisions to outsource can be made at any time,especially if the company’s core business modelchanges. We have seen underwriters come in andout of the market and switch from doing everythingin-house to outsourcing everything, so, in conclusion,all anyone can do is watch and wait; but keep therelationship lines open and healthy as you neverknow when the next opportunity will present it self!

The threat to travel agents from the Internet boomreally depends on their ability to use the technologyto their advantage and many analysts say that travelagents can prosper by using the Internetthemselves. If they sell niche products or specialisein areas such as business travel, they will find theInternet an ally. By concentrating on what theInternet cannot offer – such as customer relations,specialising in remote areas that require guidance,added security and complete packages – it ispossible for travel agents to stay on top.“We have found there are a lot of people who arecash rich but time poor and they want our advice.They want expertise, good advice and goodservice,” said David Speakman, managing director ofTravel Counsellors, which operates a network ofpeople who specialise in particular destinations.Business travel is also more likely to remain in thehands of the travel agent, as there is more money tobe spent and agents are more suited to planningcomplex itineraries and reacting to changing schedules.As Keith Betton of the Association of British TravelAgents explained: “A business traveller may want toadd on extras and adjust the booking. The onlineworld doesn’t lend itself to someone with acomplex booking.”

Although bigger agents and travel companies may beable to respond to more complicated booking deals,smaller agents may still suffer. Moreover, online travelcompanies are aware of their own fallibility and areworking to overcome it. Companies such as Yahooand Google are attempting to piece together thedifferent aspects of the travel process to create amore seamless and personalised service. Thisincludes tools to organise and share travel information– using maps, local listings and bulletin boards – in anattempt to create a complete experience.Hitwise director of research, Heather Hopkins,reported at last year’s World Travel Market that thetotal share of UK online visits taken by travel grewby eight per cent in October year-on-year, to take a4.5 per cent slice of all UK Internet visits.Surprisingly, visits to online travel agents remainedstable. It was travel suppliers, such as hotels andairlines, that occupied the real growth market.The travel market is increasingly erratic, with travelcompanies holding top positions for ever shorterperiods of time. The onset of mobile marketing mayadd another cog to the ever turning travel marketwheel, as the barriers that currently stand in theway of selling travel on mobiles – connectivity,coverage and tariffs – are gradually resolved.

The changing face of travel for agents continued from p.15

…how do insurers ensure they have chosen the correct provider,which will not only provide excellent service to the insuredperson, but also mitigate losses and protect brand value?

By far the most commontheme that comes up

when talking to insurersabout the selection of

their providers is honesty

Due to the lack of interest in mental health issues,there also exists a lack of knowledge about theproblems associated with it. I will therefore start byproviding some general information about mentalhealth problems and then give some possibleguidelines as to how to handle them in customersfor travel insurance companies.

Just as there are many different physical diseases,there are a great variety of mental health disordersand their seriousness ranges from simplenervousness to chronic schizophrenia. They includegross organic disorders, such as dementias anddelirium, to conditions for which hardly anyabnormality of the brain is found. Although, inrecent years, due to modern means of investigation,more and more abnormalities in feeling, thinkingand behaviour are paralleled by abnormal findings inbiochemistry, physiology and/or anatomy of thebrain. However, almost all of these findings aremade in laboratories, but, in most cases, are not yetsuitable for making routine diagnoses.In the past, many people thought that seriousmental health problems were due to the stress ofmodern society and that in lessdeveloped countries the incidencewould be much lower or evennon-existent. This is not the case.Although there are significantdifferences between countries,the most serious conditions,like psychoses, are presentin all parts of the worldand in every culture orclimate.Mental health problemsare among the mostfrequent afflictionshumanity suffers. In 2001,the World HealthOrganization (WHO)edited a global surveycalled Mental Health: NewUnderstanding, New Hope.It showed, that, at any one

time, 10 per cent of the world’s population issuffering from some form of mental illness, 25 percent of all people will suffer from a mental disorderand 12.3 per cent of healthy life years were lost tomental health problems in 2000. Another way toexpress the long-term impact of any disease is the‘years of life lived with disability’ (YLDs): the YLDsdue to neuropsychiatric conditions as a proportionof all YLDs worldwide is 31 per cent and variesfrom 18 per cent in Africa to 43 per cent in Europeand the Americas.Taking these figures into consideration we mayconclude that mental health problems are amongthe most common that governments and businessesface, but they seem, so far, to have beensystematically underestimated.

In several respects, the diagnosis of mental healthdisorders is different from that of physical diseases. Itis distinguished by the following:

1) Dependency on information from the sufferer.With physical diseases, the doctor is dependent onthe patient to know if he/she is suffering from pain

or nausea, for example, but a vast spectreof investigations are available to

examine the corporal condition of apatient, such as laboratory findings,X-rays and scans. And, also, directphysical examination in many cases

can give crucial information.With mental health conditions,this is much less the case:hallucinations can beconcealed, a depressed moodcan be denied, an obsessionwill show itself only underspecific conditions, an anti-social personality disorder canbe found out only by having aclose look at the life course ofa person, and an addictedperson has frequent soberperiods.As many sufferers of mental

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FEATURE26

Handling mental health disorders

In many fields of mostsocieties – like politics,the business world andsocial services – therehas been much lessinterest in mental healththan physical health.This is remarkablebecause mental healthproblems are among themost frequent and mostdisabling conditionspeople can suffer. Dr Leode Graaf reports

Signs and characteristics

Spread of mental health problems

health conditions have experienced the stigma anddiscrimination of mental health problems, many ofthem will be inclined to dissimulate its problems.

2) Variability over time.One of the problems with mental health disordersis their variability over time: people with an anxietydisorder can be rather quiet when booking for atrip, but become anxious once the time comes forboarding the plane or visiting a new destination. So,people with a mood disorder (like bipolar disorders)can be a bit depressed when booking, but manic atthe start of the holiday. Likewise, a schizophreniccan have periods of psychoses, but also longperiods of thinking, feeling and behaving well.

3) Time needed for making the diagnosis.There are mental conditions where only a swiftconsultation is sufficient to conclude that ‘somethingis wrong’. But, especially in these cases, it can takehours before a reliable diagnosis is made, because inmany cases a mental problem is not what itappears. There are even more mental healthproblems for which a doctor or a psychiatrist needsto look at a complete life history to know what isreally the problem. On average, the time (andexperience) needed for diagnosis is much morethan for physical conditions and it will intrude muchmore on the patient’s private life than physicaldiagnosis – most people will undress themselvesmore readily physically than mentally.

The conclusion can be that the time, effort andmoney necessary to screen every customer on thepresence or absence of a mental disorder, will bedisproportional to the savings it might give in returnfor detecting and excluding customers with a mentalhealth disorder. Besides, it will lead to many falsepositive and false negative cases. With a falsepositive case (a customer is rejected for travelinsurance but is, on the basis of a second opinion,found not be suffering from a mental disorder ornot suffering from it to such a degree that arejection of an insurance is justified) in some

countries the company might be sued forunjustified discrimination – aphenomenon that is widespread forpeople with mental health problems. So,one important conclusion could be that atravel insurer has to accept the risk ofinsuring customers with a (serious)mental health problem.

What could be the consequences, oncethe customer is accepted for insurance,has started his trip and then shows somemental health problem? These dependon the seriousness of the mental healthproblem.The insurer should consult a medicaldoctor (or, in more serious cases, apsychiatrist) to answer the followingquestions: Is the condition as serious as itlooks? In many cases people exhibitbehaviour, which to a small or a large

extent can be due to anxiety or panic, which looksmore serious than is warranted. Reassurance andsome simple medicine can be a great help. Thereassurance, however, should be given by a persontrusted by the customer/patient and/or his/herfamily and friends, because in many cases the familyis as upset as the affected person.This can be a problem in a foreigncountry, where thecustomer/patient is not familiar withthe language or does not trust thelocal medical standard.If the condition is found to beserious: is it justifiable to repatriatethe person or should he/she beadmitted in the foreign country?This can be a difficult decision: onthe one hand the transport ofsomeone with a serious mentalhealth problem can be disturbingfor both the ill person and thepeople around them, on the otherhand treatment of a mental healthproblem, which is heavilydependent on goodcommunication, should take placein a way that is familiar to thepatient. In this respect, there can bea great difference between thesituation with a physical and mentalproblem.In some cases, it will be advisable torepatriate a person after initial drugtreatment. However, it should berealised that in some countriesdoctors are not legally allowed toadminister such strong psychoactivedrugs that the patient is deprived ofhis consciousness for more than a few hours: inthese countries, such strong neuroleptics are onlyallowed for the handling of emergency cases, notfor the convenience of a third party.If it is concluded that the patient can, after initialoutpatient treatment, be repatriated, the next

question will be: can the person travel on his own(with or without a family member or friend) orshould he be accompanied by a professional (nurse,doctor)?If it is found that the condition is so serious that thepatient should be admitted to a psychiatric hospital(because of psychotic behaviour or a delirium or animminent danger of suicide), the next question willbe whether the admission is on a voluntary or aninvoluntary basis. If it is on a voluntary basis, anadequate psychiatric hospital should be found. Itshould be kept in mind that in many countries inand outside Europe, most of the public psychiatrichospitals are operating to a standard that will bedifficult to accept for western customers. In thesecases, it should be found out if a private psychiatrichospital is available and affordable.If an admission is necessary, but the patient refusesany treatment or any admission, an involuntaryadmission should be considered. The regulationsabout involuntary admissions differ from onecountry to the other: in some cases, the certificateof one or two medical doctors suffice to havesomeone involuntary admitted, in other countriesthe involvement of a psychiatrist is always required,and/or the decision of a mayor or a judge. Theseprocedures can be very time consuming andtiresome for everyone involved. At other times, it

will be necessary, pending the search for doctors,mayors, judges or an appropriate hospital to keepthe patient in a police station to avert immediatedanger.How can travel insurance companies, therefore,

prepare themselves for such situations? Mostly bygathering relevant information on three points:1) By knowing how to find trustworthy doctors orpsychiatrists in each country. In most countries,there are associations of doctors, psychiatrists,psychologists and so forth. so these professionalscan be found and contacted beforehand. Make surethat the preferred professionals are certified.2) Having an overview of psychiatric facilities – boththose hospitals that are suitable for voluntaryadmissions and hospitals that have the facilities forinvoluntary admissions. Not all hospitals haveseclusion or isolation rooms, especially the privateones. These details can be obtained from theresponsible Ministries of Health, and judgedbeforehand, so that in case such a facility is needed,you know where to look.3) It is advisable that some overarching organisationmaps the legislation concerning the handling ofinvoluntary admissions of all countries wherecustomers could stay. A few years ago, on requestof the European Union, a very useful overview formost of the European countries was made. Forother countries of the world: ask the WHO.The handling of psychiatric patients needs specificexpertise: the seriousness of a condition can easilybe underestimated or overestimated – both canhave grave consequences. So make arrangements

by having at hand a list of doctors, psychiatrists,suitable hospitals and relevant legislation before thecrisis takes place, because these crises have theunpleasant habit of coming at unexpected and veryinconvenient moments.

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FEATURE 27

Possible guidelines

International Travel Insurance Journal www.itij.co.uk

DICK’SHOTLINE / HOTSPOTS28

Increasingly, visitors to the States face a confusingand overlapping web of laws as immigration officialsof all ranks strictly enforce various regulations, oftenwith harsh and unfair results. The political climatehas become increasingly hostile to foreign visitorsfrom some countries, and discretion is now rarelyused to correct or prevent unfair results. Forexample, earlier this year, an Irish literatureprofessor, who had been invited to teach at aprestigious university in Philadelphia, was handcuffedupon his arrival, strip-searched and jailedovernight. Thefollowing morning hewas sent back toEurope. Thistreatment was theresult of an omissionin his traveldocuments.In another ongoingincident, immigrationofficials in the US havetargeted a secondgrade boy fromCanada fordeportation. He hadbeen living with hisUS mother in New York and returned from a briefvisit to his Canadian relatives with the wrong visa.The mother was forced to spend $10,000 on legalassistance to correct her son’s paperwork problem,but to no avail. Only after the involvement of aninvestigative journalist was a recommendation madeto the immigration judge to allow the boy to remainin the US.The atmosphere created by concerns aboutterrorism often causes low-level immigrationemployees to act out of fear of losing their jobs ifthey are not tough enough. As a result, rigidityabounds. In some instances, a lawyer’s timelyintervention can help resolve the entry problembefore it results in a complicated quagmire.However, most of those affected by theseproblems do not have legal assistance coverage andare unaware of how to quickly access legal help.An example of this misguided toughness involved ayoung businesswoman from China who visitedfriends in Philadelphia before going on to NiagaraFalls. As she attempted to walk across the borderinto Canada, she was grabbed and attacked by arecently hired US immigration official. The borderguard mistakenly believed the Chinese woman wastravelling with a Caucasian man who had just beenstopped for possessing marijuana. In his zeal, theagent knocked this frightened woman to theground, then punched and kicked her. She requiredhospital treatment and was traumatised by theattack. Chinese consular officials quickly denouncedher treatment.An official US investigation established that thewoman was blameless and the immigration officialwas arrested and lost his job. I was requested toadvise the woman of her rights and the methods oflegal redress, and offered our legal services andassistance. However, the woman decided to retaina Mandarin speaking attorney to bring a Civil Rightsaction on her behalf. Unfortunately, that attorney

had no experience in this type of complicatedlawsuit. The defendants in the case were the USGovernment and the border officer. On the witnessstand, the woman unexpectedly testified that theofficer had fondled her breasts, something she hadnever mentioned to anyone. The jury found thattestimony incredible and rejected the rest of herstory, bringing in a verdict in favor of thedefendants.Such despicable actions by immigration officials are

extremely rare andthe vast majority oftourists experienceonly minor delays atimmigration orcustoms as theyarrive at a US entrycity. Businesstravellers, however,are more likely toencounter lengthydelays and otherentry inconveniences.Another emergingproblem stems fromthe US Departmentof HomelandSecurity’s ‘no fly’ and

‘watch’ lists. At a minimum, people on these listsare taken aside by airport security, vigorouslyquestioned and fully searched. Often, this occurswhen a person shares a name the same or similarto a name on one of these lists. In February 2006,Alaskan Senator Ted Stevens’ wife was delayed andaggressively questioned because her last namematched that of Cat Stevens, the former popularsinger now known as Yosuf Islam, who is barredfrom entering the US. So far, at least 30,000 ofthese targeted people have attempted to have theirnames removed. That procedure involvessubmission of notarised copies of birth certificatesand other documents. This clearance process canbe lengthy and frustrating. Even when US SenatorEdward (Ted) Kennedy found himself on the ‘no fly’list, it took him almost a month to have his nameremoved.A method of cutting down on these airport delayscalled the Registered Traveller programme is in itsinfancy and should be in operation at 40 USairports by the summer of 2006. With anenrollment fee of about $100 and a federalbackground search, registered travellers canpurchase an identity card encoded with digitalbiometric data. A dedicated lane at security check-inshould save substantial time for each participant, asignificant benefit for frequent travellers.Clearly, most countries have become more vigilantin screening people attempting to cross theirborders. Several hotline calls involved visitors to theUK who were refused entry when officialsdetermined that their holiday visit was likely to be acover for a business trip. They were placed on thenext flight to their origin city and upon arrival home,they called our hotline seeking redress. While manypeople complain about travel problems, mostrespect and even appreciate the importance ofairline and border security, and their complaint callsusually involve only the most egregious actions.

Security concerns after the 11-September era have

created travel delays and accompanying problems.

The US Homeland Security Act has meant officials

are more vigilant and aggressive with non-citizens.

Dick Atkins attempts to calm the hostile waters

Indonesia: Managing theavian flu threatIndonesian doctors have reported an increasingnumber of suspected human H5N1 avian flu casesfrom an expanding geographic area this month.iJET Intelligent Risk Systems analyse the data

In 2006 alone, Indonesia has reported 10 cases ofthe deadly H5N1 strain of bird flu, including ninedeaths. This is the most casualties from the virus inany country this year and doctors believe thatofficial reports underestimate the actual number ofcases. World Health Organization (WHO) officialshave confirmed a total of 27 human H5N1 cases inIndonesia, including 20 deaths since July 2005. Allbut two cases have been in West Java or Jakarta,while recent cases have occurred in South Jakartanear expatriate neighbourhoods. Corporationsoperating in Indonesia may be hit early and hard ifefficient person-to-person transmission of H5N1begins there, and risk managers should takeproactive steps to prepare for this possibility.Doctors have identified no sustained person-to-person transmission of H5N1 in Indonesia, butexperts are concerned about the appearance ofmultiple human cases in Jakarta – some without aclear source of exposure. Tests have found H5N1in birds in every municipality of Jakarta andconditions in Indonesiaare optimal foradditional human casesbecause residents haveclose contact with aheavily infected poultrypopulation.

Slow responseThe surveillancesystems for bothanimal and humancases of H5N1 inIndonesia are extremely weak, and the governmentseems both unable and unwilling to take the stepsnecessary to prevent further human cases.Indonesia has been slow to admit that avianinfluenza is a problem and has been reluctant tocarry out extensive culling or enforce the strictbiosecurity measures necessary to control thedisease in poultry. Government leaders havedetermined that extensive culling of poultry is tooexpensive and impractical in a nation of 17,000islands spanning 5,000 kilometres in which thedisease is now widespread. Instead, Indonesia hasdecided on a policy of limited poultry culling, alongwith vaccination of domestic birds. To this end, thecountry is receiving international aid, but theprogramme is in its infancy, and there is noevidence that Indonesia will have the capability tocontrol avian influenza among poultry in the nearfuture.Probably the most significant problem is thedecentralisation of the Indonesian government,which has given district level officials in both thehealth and agriculture sectors power to makedecisions contrary to recommendations by theMinistries of Health and Agriculture.Decentralisation is also a problem for the nation’s

healthcare infrastructure, which has significantsurveillance and reporting problems and largeregional disparities in available care. Communicablediseases continue to be a major cause of morbidityand mortality.

Steps to takeAlthough the current risk of H5N1 avian influenzafor people is low, the situation could change quickly.Corporations should watch for early warning signsof the emergence of a pandemic strain, includingthe appearance of clusters of cases, cases amonghealthcare workers and new cases without a clearsource of infection. They should have an evacuationand emergency plan in place and, at the first sign ofperson-to-person spread, move quickly to evacuateessential personnel (if possible) and enact workplacesafety measures.An important signal of an impending pandemic maybe action by the WHO to raise the Pandemic AlertLevel to Phase Four. When/if this happens, workquickly to institute your corporation’s early phasesof a pandemic plan. Essential features of this planshould include:• Rapid and frequent communication withemployees both at home and abroad.

• Diversion of essentialbusiness resources tounaffected areas. • Evacuation of essentialemployees. • Consideration of analternative work site(s). • Disease preventionmeasures in the workplace. • Institution of appropriatequarantine policies. • Allowing personnel to workfrom home.

Once person-to-person transmission of H5N1occurs, commonsense measures are important toprevent disease transmission. Properimplementation may require executive or physician-level advocacy with the building engineers, landlordand cleaning services. Suggested actions are listedbelow; consider implementing some simplemeasures now:• Require sick employees to stay home. • Encourage meticulous hand washing and personalhygiene. • Regularly disinfect objects that are touched bymany people. • If possible, do not share keyboards or phones. • Avoid crowding and large meetings, whenpossible. • Enhance ventilation. • Give special attention to maximize hygiene inkitchens and food services. • Regularly disinfect door handles and elevatorbuttons. Educate employees to wash hands aftertouching these.The corporations that will survive a pandemic arethose that carefully monitor the situation, build apreparedness plan and develop the ability toinstigate a flexible response.

Developing problems

iJET Intelligent Risk Systems (www.ijet.com), the travel risk management company, providesreal-time travel intelligence information through its award-winning Worldcue (copyright)technology platform for tracking and communicating with travellers. iJET services are backedby regional and category specialists from the fields of intelligence, security, travel, and healthwho staff an around-the-clock operations centre in Annapolis, MD.

Dick Atkins is chief counsel for International Recoveries, Philadelphia, which provides globallegal assistance to the travel insurance industry. He is in charge of International Recoveries’ legalhotline and has been involved in handling international legal incidents for the past 20 years. Hecan be reached via email on dickatkins@aol.com

International Travel Insurance Journal www.itij.co.uk

SERVICEDIRECTORY 30 To have your company listed in the Service Directory email: dave@itij.co.uk

AIR AMBULANCE cont.

1. Air Ambulance

2. Assistance Companies

3. Air Ambulance Interior

4. Cost Containment

5. Claims Management

6. Critical Care Patient Transport

7. Funeral Directors

8. Healthcare Clinics

9. Hospitals

10. Medical Escort on Commercial Airlines

11. Medical Provider

12. Medical Screening

13. Re-insurance

14. Travel Agents

CATEGORY KEY

South Pacific Air Ambulance Scotty Watson – Managing Director

NEW ZEALAND ops@spaanz.co.nzAUSTRALIA Tel: +649 256 9000SINGAPORE Fax: +649 256 9111

EUROPE

Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com#210 www.airambulanceworldwide.comPalm Harbor Tel: +1 727 781 1198Florida 34684 Fax: +1 727 786 0897USA

Augsburg Air Ambulance Roland Schoberth – Director

Roseggerstr 17 info@ambulanzflugdienst.deD-86368 www.ambulanzflugdienst.deGersthofen Tel: +49 821 299 1020GERMANY Tel: +49 821 299 2030

Air Medical Ltd Glenn Salt – Flight Operations Manager

Oxford Airport operations@airmed.co.ukKidlington www.airmed.co.ukOxfordshire Tel: +44 1865 842 887OX5 1QX Tel: +44 1865 370 642UK

Alba Consulting Ltd. Andrew McGill – Managing Director

14 Belvedere Gardens enquiries@albaconsulting.orgCrowborough www.albaconsulting.orgEast Sussex Tel: +44 1892 610 560TN6 2LR Fax: +44 1892 652 620UK

AmbuAir MUDr Jiri Klimes – Director

Mikuleckeho 1310/E ambuair@volny.cz147 000 www.ambuair.czPrague 4 Tel: +420 602 767767CZECH REPUBLIC Fax: +420 244 472910

DRF German Air Rescue Frank Spirgatis – Director, Fixed Wing

Raiffeisenstr 32 frank.spirgatis@drf.de70794 Filderstadt www.german-air-rescue.deGERMANY Tel (24hr): +49 711701070

Fax: +49 711701071

Euro-flite Air Ambulance Juani Missonen – Coordinator

Helsinki International Airport juhani.missonen@jetflite.fiPO Box 187 Tel: +358 20510 1900FIN-01531 Fax: +358 20510 1901VantaaFINLAND

FAI – rent-a-jet AG Volker Lemke – Director Sales & Marketing

Flughafenstrasse 100 lemke@fai-ag.deD-90268 Nuremberg www.rent-a-jet.deGERMANY Tel: +49 911 36009 31

Fax: +49 911 36009 59

Global Medical Support Otto Karud – Marketing Director

Ullevaal University Hospital gms@snla.no0407 Oslo www.globalmedicalsupport.comNORWAY Tel: +47 22 96 50 50

Telfax: +47 22 96 50 51

IFRA Bernhard Fantner – Assistant to Director

Bahnhofplatz 13/5 office@ifra.atPOB 160 www.ifra.at3500 Krems Tel: +43 2732 825 610AUSTRIA Fax: +43 2732 851 01

Jet Executive International Charter Günter Krahé – Ground Ops Manager

Mündelheimer Weg 50 sales@jetexecutive.comD-40472 www.jetexecutive.comDüsseldorf Tel: +49 211 602 7775GERMANY Fax: +49 211 602 77766“Homebase Frankfurt/Main”

Luxembourg Air Ambulance Andy Breeden – Operations

175A, rue de Cessange info@air-ambulance.luL-1321 www.air-ambulance.luLUXEMBOURG Tel (24 hr): +352 420 440 1

Fax: +352 420 440 366

1. AIR AMBULANCE

AFRICA

Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com#210 www.airambulanceworldwide.comPalm Harbor Tel: +1 727 781 1198Florida 34684 Fax: +1 727 786 0897USA

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director

Wilson Airport emergency@flydoc.orgLangataRoad www.amref.orgPO Box 18617 Tel: +254 20 600 090Nairobi Fax: +254 20 344 170KENYA

Netcare 911 Aeromedical Shane MaraisNetcare 911 House flight@traumalink.co.za49 New Road www.netcare911.co.zaHalfway House Tel: +27 11 254 1392Midrand 1685 Fax: +27 11 254 1405SOUTH AFRICA

AUSTRALASIA

Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com#210 www.airambulanceworldwide.comPalm Harbor Tel: +1 727 781 1198Florida 34684 Fax: +1 727 786 0897USA

Asia Assistance Partners Siriporn Wongurai – Int Ops Director

184/235 Forum Tower aapartners@anet.net.th36th Flr Ratchadapisek Rd www.aapartners.netHuaykwang Tel: +662 645 3733-5Bangkok 10320 Fax: +662 645 3732THAILAND

Asia Medical Assistance Abhijeet Sachdev – Vice President

DLF City-ll asiamedassist@vsnl.netM.G Road www.privathealthcaregroup.comNew Delhi Tel: +91 9899 198 198Gurgaon 122002 Fax: +91 1242 235 2527INDIA

CareFlight International Colin Robshaw – Co-ordinator

Westmead Hospital Campus crobshaw@bigpond.net.auPO Box 159 www.careflight.orgWestmead Tel: +61 2 9891 1644NSW 2145 Fax: +61 2 9891 1284AUSTRALIA

Medical Wings Jarin Kiatfuengfoo – Director

222 Room 3602 m.w@medicalwings.comBangkok Int Airport www.medicalwings.comViphavadeo-Rangsit Rd Tel: +662 247 3392Sikan, Donmuang Fax: +662 535 4355Bangkok 10210, THAILAND

Mediflight Debra O’Brien – Operations Manager

Royal Adelaide Hospital info@mediflight.com.auNorth Terrace www.mediflight.com.auAdelaide Tel: +61 8 8223 6618SA 5000 Fax: +61 8 8223 6340AUSTRALIA

Pacific Flight Services Pte Ltd Katherine Yeo – Assistant Marketing Mgr

ST Aerospace Engineering Bldg charter_flight@pacific.net.sgSeletar West Camp www.fly-pfs.comSeletar Airport Tel: +65 6481 3756797796 Fax: +65 6482 1727SINGAPORE

www.itij.co.uk International Travel Insurance Journal

SERVICEDIRECTORY 31call +44 (0) 117 925 5151 To make an alteration to a listing email: dave@itij.co.uk

AIR AMBULANCE cont. AIR AMBULANCE cont.Global Air Response Clifton E. Carothers – President

7355 S Peoria Street tcox@airresponse.netA3/ Suite 209 www.airresponse.netEnglewood Tel: +1 800 631 6565CO 80112 Fax: +1 888 631 6565USA

JET ICU Carlos Elcoro– International Program Director

15725 Fairchild Drive email@jeticu.comClearwater www.jeticu.comFL 33762 Tel: +1 877 453 8428USA Fax: +1 727 524 9826

National Air Ambulance George Martinez– Mgr Flight Co-ordination

3495 SW 9th Ave enquiry@nationalairambulance.comFort Lauderdale www.nationalairambulance.comFL 33315 Tel: +1 954 359 9900USA Fax: +1 954 359 9500

Skyservice Air Ambulance David Ewing – VP Int. Market Development

YUL/Trudeau Int Airport skyservicemiami@aol.com9785 Avenue Ryan www.skyservice.comMontreal (Quebec) Tel: +1 514 497 7000H9P 1A2 Fax: +1 514 636 0096CANADA

2. ASSISTANCE COMPANIESAFRICA

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director

Wilson Airport emergency@flydoc.orgLangata Road www.amref.orgPO Box 18617 Tel: +254 20 600 090Nairobi Fax: +254 20 344 170KENYA

Connex Assistance Egypt Lara Helmi – Int Network Director

Office II info@connexassistance.comIst Floor www.connexassistance.com6 Sad El Aali Street Tel (24hr): +2 02 336 0005Dokki, Cairo Fax (24hr): +2 02 762 0003EGYPT

Medic Assistance Int Ltd. Dr Siddick Maudarbocus – Med Dir

85 Newry Complex medicassist@intnet.muSaint Jean Road maudar@intnet.muQuatre-Bornes Tel: +230 464 2019MAURITIUS Fax: +230 464 1298

AUSTRALASIA

Asia Assistance Partners Siriporn Wongurai – Int Ops Director

184/235 Forum Tower aapartners@anet.net.th36th Flr Ratchadapisek Rd www.aapartners.netHuaykwang Tel: +662 645 3733-5Bangkok 10320 Fax: +662 645 3732THAILAND

Asia Medical Assistance Abhijeet Sachdev – Vice President

DLF City-ll asiamedassist@vsnl.netM.G Road www.privathealthcaregroup.comNew Delhi Tel: +91 9899 198 198Gurgaon 122002 Fax: +91 1242 235 2527INDIA

Blue Dot Assistance Dr Faustinus Wirasadi– President Director

Blue Dot Center bluedot.assistance@idn.co.idBlok K, L, M www.idn.co.idJl Gelong Baru Utara 5-8 Tel: +62 21 5696 2399Tomang, Jakarta Barat 1440 Fax: +62 21 5696 2499INDONESIA

Customer Care Pty Ltd Janine Benson – Operations Manager

Level 3 janineb@customercare.com.au60 Miller Street www.customercare.com.auNorth Sydney 2060 Tel: +612 9202 8222NSW Fax: +612 9202 8220AUSTRALIA

First Assistance Mary-Jo McDonald – General Manager

PO Box 17-310 rescue@firstassistance.co.nzGreenlane www.firstassistance.co.nzAuckland Tel: +64 9 356 1650NEW ZEALAND Fax: +64 9 525 1278

Med Call GmbH Michael Diefenbach – CEO

Bahnhofstrasse 22 info@medcallgmbh.com65185 www.medcallgmbh.comWiesbaden Tel: +49 611 9310 310GERMANY Fax: +49 611 9310 311

Medical Jet Services & Partner W DichtlRadetzkystr 19 office@medicaljetservice.comVienna www.medicaljetservice.com1030 Tel: +43 1 713 2799AUSTRIA Fax: +43 1 713 2799-19

Red Star Aviation Mustafa Atac – CEO

Sabiha Gokcen Int Airport redstar@redstar-aviation.comJ Blok Kurtkoy 34912 www.redstar-aviation.comIstanbul Tel: +90 216 588 0216TURKEY Fax: +90 216 588 0225

Swiss Air Ambulance/REGA Walter Stunzi – PR/Marketing Mgr

PO Box 1414 ops@rega.chZurich Airport www.rega.chCH-8058 Tel: +41 333 333 333SWITZERLAND Fax: +41 44 654 3590

Tyrol Air Ambulance Jakob Ringler – Managing Director

PO Box 81 taa@taa.atA-6026 www.taa.atInnsbruck Airport Tel: +43 512 224 220AUSTRIA Fax: +43 512 288 888

NORTH AMERICA

Aerojet Stuart Hayman – President

4631 NW 31st Ave #220 info@aero-jet.comFt Lauderdale www.aero-jet.comFL 33309 Tel: +1 954 730 9300USA Fax: +1 954 485 6564

Air Ambulance Professionals, Inc. Brian L. Weisz – President

Ft. Lauderdale Executive Airport sales@airambulanceprof.com1535 South Perimeter Rd www.airambulanceprof.comHangar 36B Ft. Lauderdale Tel: +1 954 491 0555Florida 33309 Fax: +1 954 491 6114USA

Air Ambulance Specialists, Inc. Donald Jones – President

8001 S.Interport Blvd. info@airaasi.comSuite 250 www.airaasi.comEnglewood Toll Free: +1 800 424 7060CO 80111 Tel: +1 720 875 9182USA Fax: +1 720 875 9183

Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com#210 www.airambulanceworldwide.comPalm Harbor Tel: +1 727 781 1198Florida 34684 Fax: +1 727 786 0897USA

AirMed International LLC Cindy Horvath – Clinical Care Co-ordinator

1000 Urban Center Drive chorvath@airmed.comSuite 470, Birmingham www.airmed.comAL 35242 Tel: +1 205 443 4840USA Fax: +1 205 443 4841

Air Trek Air Ambulance David Bump – Vice President

28000 A-5 Airport Road airtrek@sunline.netPunta Gorda www.medjets.comFL 33982 Toll free: +1 800 633 5387USA Tel: +1 941 639 7855

American Care Air Ambulance Joel Reynolds – General Manager

8775 Aero Drive americancareair@aol.comSuite 120 www.americancareairambulance.comSan Diego Tel: +1 858 627 0515CA 92123 Fax: +1 858 627 0534USA

Canadian Global Air Ambulance Jeff McIntosh – President

Toronto jmcintosh@canadianglobalair.caWinnipeg www.canadianglobalair.caVancouver Toll Free: +1 800 563 3822CANADA Tel: +1 204 888 5555

Fax: +1 204 888 9111

International Travel Insurance Journal www.itij.co.uk

SERVICEDIRECTORY 32 To have your company listed in the Service Directory email: dave@itij.co.uk

ASSISTANCE COMPANIES cont. ASSISTANCE COMPANIES cont.

TBS Team 24 d.o.o Edvard Hojnik – General Manager

Ljubljanska Ulica 42 info@tbs-team24.com2000 Maribor www.tbs-team24.comSLOVENIJA Tel: +386 2618 2301(Croatia, Slovenia, Bosnia-Herzegovina, Fax: +386 2618 5800Macedonia, Serbia-Montenegro, Kosovo )

NORTH & CENTRAL AMERICA

Asistencia al Turista SA ASISTUR Emilio Guevara Fernandez – MD

Prado 208 emilio@asistur.cue/ Colon y Trocadero www.asistur.cuHabana Vieja Tel: +537 8664499Ciudad Habana 10100 Fax: +537 8668087CUBA

Assured Assistance Inc. Martha Turnbull – Director of Operations

6880 Financial Drive martha.turnbull@rbc.comMississauga Tel: +1 905 816 2495Ontario Fax: +1 905 813 4719L5N 7Y5CANADA

CMN Inc. Peter Lozier – Vice President

140 Renfrew Drive plozier@canmednet.comSuite 103 Markham www.canmednet.comOntario Tel: +1 905 669 4333L3R 6B3 Fax: +1 905 669 2221CANADA

Global Excel Management Brian Allatt – CEO

73 Queen Street corpinfo@globalexcel.caLennoxville, Quebec www.globalexcel.caJIM IJ3, CANADA Tel: +1 866 566 11304242 Cranmore Court Fax: +1 819 566 8335Belle Isle, Fl 32812, USA

Medex Assistance Corporation Linda McGee – SVP of Sales

8501 LaSalle Road info@medexassist.comSuite 200 www.medexassist.comBaltimore Tel: +1 410 453 6300MD 21286 Fax: +1 410 453 6301USA

OneWorld Assist Calvin Ball – Business Development Manager

10th Floor info@oneworldassist.com6081 No.3 Road www.oneworldassist.comRichmond, BC Tel: +1 604 278 4108V6Y 2B2 Fax: +1 604 303 2142CANADA

TMCA Margaret Whartom – Ops Manager

217 Broadway margaret@tmcatravel.comSuite 600 www.tmcatravel.comNYC Tel: +1 212 964 8580NY 10007 Fax: +1 212 406 1520USA

World Travel Protection Canada Inc. Dr Ron Mayer – President & Chf Med Officer

400 University Avenue ron.mayer@wtp.ca15th Floor www.wtp.caToronto Tel: +1 416 977 3565Ontario M5G IS7 Fax: +1 416 205 4676CANADA

3. AIR AMBULANCE INTERIOR

Air Ambulance Technology Egon Kuntner – President

A-5282 aat@airambulancetechnology.comRanshofen www.airambulancetechnology.comAUSTRIA Tel: +43 7722 85051

Fax: +43 7722 85051-22

4. COST CONTAINMENT

EUROPE

ChargeCare International Philip Marshall – Director of Operations

PO Box 18 admin@chargecare.co.ukHolsworthy www.chargecare.co.ukEX22 7WB Tel: +44 1409 261 368UK Fax: +44 1409 261 633

Global Assistance & Healthcare Mario Babin – Chief Executive Officer

Jalan Pattimura global@global-assistance.net15 Kebayoran Baru www.global-assistance.netJakaita Tel: +62 21 725 811512110 Fax: +62 21 725 7961INDONESIA

Medical Wings Jarin Kiatfuengfoo – Director

222 Room 3602 m.w@medicalwings.comBangkok Int Airport www.medicalwings.comViphavadeo-Rangsit Rd Tel: +662 247 3392Sikan, Donmuang Fax: +662 535 4355Bangkok 10210 THAILAND

South Pacific Air Ambulance Scotty Watson – Managing Director

NEW ZEALAND ops@spaanz.co.nzAUSTRALIA Tel: +649 256 9000SINGAPORE Fax: +649 256 9111

EUROPE & THE MEDITERRANEAN

ARC Transistance Hans Biekmann – Network Director

11 Avenue Pleiades hans.biekmann@arctransistance.comB-1200 Brussels www.arctransistance.comBELGIUM Tel: +32 2 776 04 70

Fax: +32 2 776 04 99

Atlantic Assist Adriano Gouveia – Operations Manager

Rua da Alfandega 10-2.D info@atlanticassist.comPO Box 750 www.atlanticassist.com9000-056 Funchal Tel: +351 291 214 200Madeira Fax: +351 291 214 202PORTUGAL

Global Voyager Assistance Costas Danilenko – CEO

PO Box II cdanilenko@gvassistance.com125124 www.gvassistance.comMoscow Tel: +7 095 775 0999RUSSIA Fax: +7 095 775 0998

Life Assistance Igor A Striganov – General Director

House 3/7 24h@lifeassist.ru5th Passage of Marinoi Roshi www.lifeassist.ru129594, Moscow Tel: +7 095 755 5678RUSSIA Fax: +7 095 631 0465

Mapfre Asistencia Pablo Alvert Sanz – Dep Reg Dir Europe

Sor Ángela de la Cruz, 6 palvert@mapfre.com28020 Madrid www.mapfreasistencia.comSPAIN Tel: +34 91 581 1320

Fax: +34 91 581 1850

Marm Assistance Jill Atac – CEO

Sabiha Gokcen Int Airport marm@redstar-aviation.comJ Blok Kurtkoy 34912 www.redstar-aviation.comIstanbul Tel: +90 216 588 0588TURKEY Fax: +90 216 588 0602

MK International Emergency Services Minas Kaloumenos – General Manager

95, Ioanninon Street mkassist@hol.gr10444 Athens Tel: +30 210 5154600GREECE Fax: +30 210 5131660

Monitor International Robert Ince – Managing Director

Monitor House info@monitorinternational.com2a Belmont Road www.monitorinternational.comSutton, Surrey Tel: +44 208 770 2753SM2 6DW Fax: +44 208 770 2756UK

SER Assistance Ltd. Dr S Zareceansky – Gen Mgr & Director

50/2206 Dizengoff Street serasist@netvision.net.ilDizengoff Tower Tel: +972 544 370 00264332 Tel-Aviv Fax: +972 362 919 91ISRAEL

SOS International Helle Drager – Marketing Manager

Nitivej 6 soshungary@invitel.huDK-2000 www.sos.dkFrederiksberg Tel: +45 7010 5050Copenhagen Fax: +45 7010 5056DENMARK

www.itij.co.uk International Travel Insurance Journal

SERVICEDIRECTORY 33call +44 (0) 117 925 5151 To make an alteration to a listing email: dave@itij.co.uk

4. COST CONTAINMENT cont. 6. CRITICAL CARE PATIENT TRANSPORT

EUROPE

Lufthansa German Airlines Doris Ehring – Product & Process Management

FRA SQ/B doris.ehring@DLH.deFrankfurt Airport Tel: +49 172 367 7929D-60546 Fax: +49 69 690 58147GERMANY

7. FUNERAL DIRECTORS

Bergen Funeral Sevice Scott Nimmo – Funeral Director

129 E 7th St. scott@bergenfuneral.comNew York www.bergenfuneral.comNY 10009 Tel: +1 212 254 2864USA Fax: +1 201 288 5694“Servicing all of the USA, Canada, South & Central America”

Funeraria Officia Roberto Zega Cristina Zega – General Manager

Via Clelia 26-28 cristina@zega.itRoma www.zega.itITALY Tel: +39 067 840 300

Fax: +39 067 802 488

Funeralcare International Roger Waddington221 Upper Richmond Road funeralcare.international@letsco-operate.comPutney Tel: +44 20 8788 5303London SW15 6SQ Fax: +44 20 8788 2525UK

Global Networks Funeral Assistance Cristina Almudi – Managing Director

23 Blindmans Lane info@gnfa.infoCheshunt www.gnfa.infoHertfordshire, EN8 9DR Tel: +44 1992 640 066UK Fax: +44 1992 785 030

MK Funeral & Transportation Services Minas Kaloumenos – General Manager

95, Ioanninon Street mkassist@hol.gr10444 Athens Tel: +30 210 5154600GREECE Fax: +30 210 5131660

Rowland Brothers International Melanie Walkling – Manager Int. Dept

299-305 Whitehorse Road info@rowlandbrothersinternational.co.ukWest Croydon www.rowlandbrothersinternational.co.ukSurrey Tel: +44 20 8684 2324CR0 2HR Fax: +44 20 8684 8000UK

Servilusa Vanda Castro – Manager Int Dept

Agencias Funerarias SA internacional@servilusa.ptInternational Dept. www.servilusa.ptRua do Entreposto Industrial Tel: +35 121 470 63008-2 Esq, 2610-135 Amadora Fax: +35 121 470 6499PORTUGAL

8. HEALTHCARE CLINICS

LuzDoc International Medical Serv. Ltd Dr Maria Alice Silva – Medical Director

Medical & Assistance Services luzdoc@mail.telepac.ptRua 25 de Abril, 12 www.luzdoc.comVilla da Luz Tel: +351 282 780 7008600-174, LUZ LGS Fax: +351 282 780 709PORTUGAL

Number One Health Group Dr Charlie Easmon – Director

1 Harley Street charlie@travelscreening.co.ukLondon www.executivescreen.comW1G 9QD Tel: +44 207 307 8756UK Fax: +447092 196 169

Privat Travel Clinics Abhijeet Sachdev – Vice President

DLF City-ll sos@privathealthcaregroup.comM.G Road www.privathealthcaregroup.comNew Delhi Tel: +91 9899 198 198Gurgaon 122002 Fax: +91 124 235 3794INDIA

M & V Administrators GmbH Jennifer Venables – Corp. Ops Director

Obergütschstrasse 33 jennifervenables@mv-administrators.comPostfach 7622 www.mv-administrators.comCH-6003 Luzern Tel: +41 41 210 6040SWITZERLAND Fax: +41 41 210 6039

Marm Assistance Jill Atac – CEO

Sabiha Gokcen Int Airport marm@redstar-aviation.comJ Blok Kurtkoy 34912 www.redstar-aviation.comIstanbul Tel: +90 216 588 0588TURKEY Fax: +90 216 588 0602

OneWorld Assist Jeanette Harper – Business Dev. Manager

PO Box 419 jhar@oneworldassist.comFleet www.oneworldassist.comGU51 9AY Tel: +44 7786 982 624UK Fax: +44 1252 627 391

NORTH AMERICA

CMN Inc. Peter Lozier – Vice President

140 Renfrew Drive plozier@canmednet.comSuite 103 Markham www.canmednet.comOntario Tel: +1 905 669 4333L3R 6B3 Fax: +1 905 669 2221CANADA

Global Excel Management Brian Allatt – CEO

73 Queen Street, Lennoxville corpinfo@globalexcel.caQuebec, JIM 1J3, CANADA www.globalexcel.ca4242 Cranmore Court Tel: +1 866 566 1130Belle Isle, FL 32812 Fax: +1 819 566 8335USA

Global Medical Management Raija Itzchaki – Assistant VP Marketing

7901 SW 36th Street contact@gmmusa.comSuite 100 www.gmmusa.comDavie Tel: +1 954 370 6404FL 33328 Fax: +1 954 370 8613USA

Health Systems International Peggy Novotny – VP / Gen Mng. Int Bus.

5975 Castle Creek Parkway pnovotny@us-hsi.comSuite 100 www.us-hsi.comIndianapolis Tel: +1 317 806 2000IN 46250 Fax: +1 317 806 2033USA

Hygeia Corporation Joe Radigan – Chief Operating Officer

15500 New Barn Road j.radigan@hygeia.netSuite 200 www.hygeia.netMiami Lakes Tel: +1 305 594 9291FL 33014 Fax: +1 305 594 9201USA

Medsave USA Noam Baruch – CEO

1400 Old Country Road nbaruch@medsaveusa.comSuite 109 www.medsaveusa.comWestbury Tel: +1 516 622 1700NY 11590 Fax: +1 516 622 1733USA

TMCA Margaret Whartom – Ops Manager

217 Broadway margaret@tmcatravel.comSuite 600 www.tmcatravel.comNYC Tel: +1 212 964 8580NY 10007 Fax: +1 212 406 1520USA

5. CLAIMS MANAGEMENT

Global Assistance & Healthcare Nathan Hannah – TPA Mgr Asia/Pac

Jalan Pattimura nathan.hannah@global-assistance.net15 Kebayoran Baru www.global-assistance.netJakaita Tel: +62 21 725 811512110 Fax: +62 21 725 8951INDONESIA

Global Excel Management Brian Allatt – CEO

73 Queen Street, Lennoxville corpinfo@globalexcel.caQuebec, JIM 1J3, CANADA www.globalexcel.ca4242 Cranmore Court Tel: +1 866 566 1130Belle Isle, FL 32812 Fax: +1 819 566 8335USA

International Travel Insurance Journal www.itij.co.uk

SERVICEDIRECTORY 34 To have your company listed in the Service Directory email: dave@itij.co.uk

10. MEDICAL ESCORT ON COMM AIRLINES cont.American Care Air Ambulance Joel Reynolds – General Manager

8775 Aero Drive americancareair@aol.comSuite 120 www.americancareairambulance.comSan Diego Tel: +1 858 627 0515CA 92123 Fax: +1 858 627 0534USA

Global Air Response Clifton E. Carothers – President

7355 S Peoria Street tcox@airresponse.netA3/ Suite 209 www.airresponse.netEnglewood Tel: +1 800 631 6565CO 80112 Fax: +1 888 631 6565USA

11. MEDICAL PROVIDER

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director

Wilson Airport emergency@flydoc.orgLangata Road www.amref.orgPO Box 18617 Tel: +254 20 600 090Nairobi Fax: +254 20 344 170KENYA

Atlantic Assist Adriano Gouveia – Operations Manager

Rua da Alfandega 10-2.D info@atlanticassist.comPO Box 750 www.atlanticassist.com9000-056 Funchal Tel: +351 291 214 200Madeira Fax: +351 291 214 202PORTUGAL

SOS – Hungary Assistance Dr Peter Felkai – Medical Director

Szentendrei Street 301 soshungary@invitel.huBudapest www.soshungary.huH-1039 Tel: +36 1240 0475HUNGARY Fax: +36 1439 1440

12. MEDICAL SCREENING

Risck Solutions Ltd Ian Findlay – Commercial Director

The Medical Centre admin@risck.co.uk238 Broomhill Road www.risck.co.ukBrislington Tel: +44 870 428 4248Bristol BS4 5RG Fax: +44 871 226 8810UK

The Medical Screening Company Helen Lishmund – General Manager

Monitor House info@prescreen.co.uk2a Belmont Road www.prescreen.co.ukSutton, Surrey Tel: +44 208 770 2778SM2 6DW Fax: +44 208 770 2756UK

Travel & Medical Insurance Services Michael J Turner – MD

1st Flr Suite, West House sales@travelandmedical.net46 High Street www.travelandmedical.netOrpington, Kent Tel: +44 845 058 8000BR6 0JQ Fax: +44 845 053 3000UK

Travel Screen Alexandra Howell – General Manager

PO Box 5765 info@travelscreen.co.ukSouthend-on-Sea www.travelscreen.co.ukEssex Tel: +44 1702 587 007SS1 9BE Fax: +44 1702 584 731UK

13. RE-INSURANCE

Crispin Speers & Partners ltd David Stirling – Marketing Manager

St Clare House david.stirling@cspinsurance.com30-33 Minories www.cspinsurance.comLondon EC3N 1PE Tel: +44 20 7977 5700UK Fax: +44 20 7702 9276

14. TRAVEL AGENTS

Voyageur Aeromedical Travel Marc Lucus – General Manager

Voyageur Buildings marc@voyageur.co.uk43 Colston Street www.voyageur.co.ukBristol BS1 5AX Tel: +44 (0)117 927 3554UK Fax: +44 (0)117 925 5940

9. HOSPITALS

ASIABangkok General Hospital Jane Bailey – Int Marketing Executive

International Medical Center jane@bgh.co.th2, Soi Soonvijai 7 www.bangkokhospital.comNew Petchburi Road Tel: +66 2310 3460Bangkok 10320 Fax: +66 2310 3367THAILAND

Privat Hospital Abhijeet Sachdev – Vice President

DLF City-ll sos@privathealthcaregroup.comM.G Road www.privathealthcaregroup.comNew Delhi Tel: +91 9899 198 198Gurgaon 122002 Fax: +91 124 235 3794INDIA

EUROPE

Hospital Clinica Benidorm Dra Ana Paz Brown – Medical Director

Avenida Alfonso Purchades 8 anapaz@clinicabenidorm.com03500 Benidorm www.clinicabenidorm.comAlicante Tel: +34 96 585 3850SPAIN Fax: +34 96 586 4345

Xanit Hospital de Benalmadena Dr. Juan Bosco Rodriguez Hurtado – Director

Camino de Gilabert s/n xanit@xanit.netBenalmadena www.xanit.net29630 Tel: +34 952 44 3119/0032Malaga Fax: +34 952 57 6661SPAIN

NORTH AMERICA

Baptist Health International Center of Miami Yohandra Fuentes – Finance Manager

8940 North Kendall Drive international@baptisthealth.netSuite 601-E www.baptisthealth.net/internationalMiami, Fl 33176 Tel: +1 786 596 2373USA Fax: +1 786 596 5979

10. MEDICAL ESCORT ON COMMERCIAL AIRLINES

AFRICA

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director

Wilson Airport emergency@flydoc.orgLangata Road www.amref.orgPO Box 18617 Tel: +254 20 600 090Nairobi Fax: +254 20 344 170KENYA

AUSTRALASIA

CareFlight International Colin Robshaw – Co-ordinator

Westmead Hospital Campus crobshaw@bigpond.net.auPO Box 159 www.careflight.orgWestmead Tel: +61 2 9891 1644NSW 2145 Fax: +61 2 9891 1284AUSTRALIA

Medical Wings Jarin Kiatfuengfoo – Director

222 Room 3602 m.w@medicalwings.comBangkok Int Airport www.medicalwings.comViphavadeo-Rangsit Rd Tel: +662 247 3392Sikan, Donmuang Fax: +662 535 4355Bangkok 10210 THAILAND

Mediflight Debra O’Brien – Operations Manager

Royal Adelaide Hospital info@mediflight.com.auNorth Terrace www.mediflight.com.auAdelaide Tel: +61 8 8223 6618SA 5000 Fax: +61 8 8223 6340AUSTRALIA

NORTH AMERICA

Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com#210 www.airambulanceworldwide.comPalm Harbor Tel: +1 727 781 1198Florida 34684 Fax: +1 727 786 0897USA

CONTRIBUTORSDick Atkins is chief counsel for InternationalRecoveries, Philadelphia, which providesglobal legal assistance to the travel insuranceindustry. He is in charge of InternationalRecoveries’ legal hotline and has beeninvolved in handling international legalincidents for the past 20 years. He can bereached via email on dickatkins@aol.com

Dr Leo de Graaf was elected president ofMental Health Europe at its general assemblyin March 2005 and has been director of adiversified psychiatric and psychosocial serviceprovider De Gelderse since 1990. From 1980, Drde Graaf worked as a child psychiatrist and healso practiced tropical medicine in Malawi.

Robin Gauldie is a freelance journalistspecialising in travel, aviation and relatedsectors. A former editor of the pan-Europeantravel industry newspaper TTG Europa, he hasalso edited Destination ASEAN (the officialtourism magazine of the Association of SouthEast Asian Nations); ABTA Magazine (the officialpublication of the Association of British RavelAgents; and Travel Agent International. Hecontributes to the Times, the Sunday Telegraph,the Scotsman, the Sunday Mirror, and tonumerous specalist magazines and is theauthor of more than 20 travel guidebooks todestinations ranging from Dublin to Sri Lanka.

iJET Intelligent Risk Systems (www.ijet.com),the travel risk management company, providesreal-time travel intelligence informationthrough its award-winning Worldcue(copyright) technology platform for trackingand communicating with travellers. iJETservices are backed by regional and categoryspecialists from the fields of intelligence,security, travel, and health who staff an around-the-clock operations centre in Annapolis, MD.

Milan Korcok is an award-winning freelancehealth policy and economics writer who coverstravel insurance, public health, and medicaleducation issues in Canada and the United States.He has been writing about health financing andpolicy issues in these countries since the 1960sand is a frequent contributor to leading NorthAmerican professional journals and consumermedia. He lives in Fort Lauderdale, Florida.

Julie Remmington is an independentconsultant advising all aspects of the travelinsurance industry. Having worked within theindustry for over 15 years, Julie set up her ownconsultancy in 2003. She also works within thedisaster management side of travel for bothtour operators and travel insurers.

Roger St Pierre is one of the UK's mostexperienced travel, music and motoring writersand has visited 111 countries on five continents.His insights appear in a wide range of consumerand trade publications. Roger's 33 publishedbooks include a history of McDonald's, guidesto such destinations as Orlando, Moscow,Edinburgh and the Costa del Sol, biographies ofMarilyn Monroe, James Dean, Bob Marley andJimi Hendrix and a range of cycling books, thelatest of which is A Bike Is For Life.

Ian Youngman ACII, is a specialist freelanceinsurance writer and researcher who writes fora wide range of publications. As well asresearching and publishing specialistmanagement reports on insurance, he is aghostwriter for various companies andorganisations.He previously had extensiveindustry experience with insurers and brokers.

Krauter hires AultInsurance brokerage Krauter & Co has hired John B.Ault, a former Marsh Inc. managing director, to lead itsnew office. It is expanding its operations into Chicago,which is the sixth office New York-based Krauter &Co. has opened in the past 15 months.Mr Ault, a 22-year veteran of Marsh, was involved inbusiness development, client relations and senioroperational management at Marsh and has developedand managed many complex risk programmes,Krauter said in a statement. Neil C. Krauter formedthe brokerage in 2004. He was former vice chairmanof Aon Risk Services and global practice leader of itsmerger and acquisition group.

EA realignsdirectorsEurop Assistance has completed the final stage of thestrategic realignment of its UK Board of Directors andCommercial Department, which has now beenregrouped under the auspices of three company directors. Charles Walckenaer, managing director of UK andIreland, will now oversee the sales and marketingfunction. Within this framework, the sales andcommercial business development teams will report toGiorgio Daboni, managing director of Europ AssistanceInsurance Ltd, who will be responsible for thedevelopment of commercial opportunities. Overallresponsibility for client services will be placed with PaulEverett, client services and operations director.

The Fortis Board ofDirectors is proposing toshareholders the re-election as non-executivedirectors of RichardDelbridge, pictured, andKlaas Westdijk for a three-year term and Jan Slechtefor a one-year term, as in2007 he will reach the age limit set by the Board.The Board of the Brussels-based company is alsoproposing the appointment of Aloïs Michielsen asnon-executive director for a three-year term.Baron Janssen, having reached the age limit for sitting onthe Board, will be stepping down. Fortis would like toexpress its deepest gratitude to Mr Janssen for thesignificant contribution he has made to the developmentof the company and to the Board’s undertakings.

Penningtons partnerheads travel unitPenningtons Solicitors in the UK is pleased toannounce that partner Louise Lydon has beenappointed to head the company’s travel unit. Louisejoined Penningtons in 2003 and specialises in bothinternational and domestic litigation in travel andtourism, predominantly acting for claimants injuredabroad and UK-based travel insurers. She also adviseson commercial aspects of the travel industry.Commenting on her appointment, Ms Lydon said:“Travel is an extremely important sector for Penningtonsand I am delighted to be responsible for furtherdeveloping the service we provide for people injuredabroad, travel insurers and other corporate clients.”

2 AprilAssociate in Claims (AIC)

Conferment & Recognition EventLOCATION: Opryland Hotel,

Nashville, TN (PLRB Conference)www.claimsconf.org

3–4 April Technology Summit &

ExhibitionSingapore

www.asiainsurancereview.com4–5 April

Tech-eRisk 2006International Risk Management

Institute, Inc.Hilton Washington DC/Silver Spring, US

www.irmi.com6–8 April

Society of Risk ManagementConsultants (SRMC) Spring

ConferencePeabody Hotel, Tennessee, US

www.srmcsociety.org

10–11 April The Bond Buyer's Tourism

Facilities Financing ConferenceHyatt Regency Baltimore on the Inner

Harbor, Maryland, USwww.abi.org.uk/

9–11 AprilAmerican Association of

Insurance Services (AAIS)Annual Conference

The Ritz-Carlton, Florida, USwww.aaisonline.com

11–12 April Bancassurance & Alternative

Distribution ChannelsSeoul, South Korea

www.asiainsurancereview.com18–20 April

International Pet InsuranceConference (IPIC)

Radisson SAS, Birmingham, UKwww.voyageur.co.uk/ipic

18–20 AprilTPA & MGU/Excess Insurer

Executive ForumCharleston Place Hotel, S Carolina, US

www.siia.org

18–20 AprilA Guided Tour of Insurance - Driving

Solutions with ComprehensiveTraining - FOR WOMEN ONLY

Alexis Park Resort, Las Vegas, USwww.insurancewoman.com

23–27 AprilThe Risk and Insurance

Management Society’s (RIMS)Annual Conference 2006

Honolulu, Hawaiiwww.rims.org

24–25 AprilPricing and Rate Making in Plain

English SeminarDowntown Courtyard Hotel, Chicago, IL

www.dormanconsulting.com25–26 April 5th Asian Health and Healthcare

Insurance ConferenceRenaissance Seoul Hotel, Seoul, S Korea

www.asiainsurancereview.com26–28 April

The Credit Union Journal BestPractices Conference

Hyatt Hotel, Florida, USwww.abi.org.uk/

Diary dates

www.itij.co.uk International Travel Insurance Journal

ONTHEMOVE 35

New China role forAIGOlin L. Wethington, former special envoy on Chinafor the US Department of the Treasury, has joinedAmerican International Group Inc. as chairman ofAIG Cos. in China. In his newly created position, MrWethington will oversee the company’s expansion ofbusiness in the country. He will report to senior vicechairman Edmund Tse and will work closely withMartin Sullivan, AIG’s president and CEO.Mr Sullivan said AIG expects to grow its life and non-life insurance operations in major Chinese cities. “Iexpect Olin to be a key leader of our expansionefforts in China,” he said.

Fujii climbing inBermudaMichael Fujii has been appointed chief operatingofficer for insurance at Endurance Specialty Holdingsin Bermuda. In this newly created position, Mr Fujii,who joined the Pembroke-based company inOctober 2004, will expand his current role as headof the firm’s US insurance business to oversee itsglobal insurance operations, including business in theUK and Bermuda. The appointment is effectiveimmediately.

Catlin makespreparationsBermuda-based Catlin Group Ltd has named thepresident and chief executive officer of its planned USoperation – Catlin Insurance Co. Inc., for which itexpects to gain regulatory approval to beginunderwriting shortly. Rich Banas, formerly chiefunderwriting officer for XL Professional Lines, hasbeen appointed to the role.

International insurance andreinsurance broker CrispinSpeers & Partners (CSP)has made a recentappointment to its travelinsurance team. Steve Kingjoins the company fromInterglobal, where he ranthe administration and ITsupport systems. Mr King has worked in thetravel insurance industry for 21 years and has heldvarious positions on both the underwriting andbroking sides of the business, including managingdirector at JSM Insurance Management.He joins CSP as travel insurance manager and willreport to the managing director Crispin Speers. MrSpeers commented: “We have been looking to find asuitably experienced candidate to supervise andmanage our travel team. Steve has managed teamsbefore and has a vast background in travel andaccident and health.”

New CE at Lloyd’sLloyd’s of London has appointed Richard Ward,pictured, as its new chief executive. He willcommence his new role on 28 April, taking overfrom Nick Prettejohn. Mr Ward was chief executiveof the London-based International PetroleumExchange, which was re-branded ICE Futures inadvance of the listing of its parent company on theNew York Stock Exchange at the end of 2005. He iscurrently vice chairmanof ICE Futures.“I am delighted thatRichard has agreed tojoin Lloyd’s at such acritical time for themarket,” said chairmanPeter Levene. “Lloyd’shas made huge progressin recent years and is ingood shape, but we areclear there is still muchto do to improve themarket’s efficiency and move to the next level.”Lloyd’s said the appointment has received the requiredapproval from the Bank of England and is also subjectto approval by the Financial Services Authority.

Published on behalf of Voyageur Publishing & Events Ltd,Voyageur Buildings, 43 Colston Street, Bristol BS15AX, UK

The information contained in this publication has been publishedin good faith and every effort has been made to ensure itsaccuracy. Neither the publisher nor Voyageur Ltd can accept anyresponsibility for any error or misinterpretation. All liability forloss, disappointment, negligence or other damage caused byreliance on the information contained in this publication, or in theevent of bankruptcy or liquidation or cessation of the trade ofany company, individual or firm mentioned, is hereby excluded.

Printed by Pensord Press

Copyright © Voyageur Publishing 2004. Materials in this publicationmay not be reproduced in any form without permission.

INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522

CSP appoints Kingto travel team

New compositionfor Fortis

Contract extendedfor James SchiroThe Board of Directors for Zurich Financial ServicesGroup has announced its intention to extend thecontract of the Group’s chief executive officer (CEO)James J. Schiro to December 2009.Chairman of the Board of Directors, Manfred Gentz,said: “We are pleased that James Schiro has agreedto extend his tenure. The Board recognises JamesSchiro’s ability to inspire. James is respected as anarticulate and forceful leader, both for Zurich and ourindustry, and we trust that he will bring the Groupever closer to fulfilling our ambition of becoming aleading global insurer.”Born in 1946, James J. Schiro was appointed CEO inMay 2002 and during this time, Zurich achieved aturnaround based on financial discipline, organisationaltransformation and a sharp focus on profitablebusinesses. This turnaround was sustained by theinstallation of a new leadership team by Mr Schiro,enabling the solid performance to continue.”In addition to serving on the board of directors ofPepsiCo and Royal Philips Electronics, Mr Schiro isactive in a number of professional and civicorganisations in Switzerland and the US.