Could we have been
better prepared?
page 2
Why risk managers
need to become
change agents
page 4
When a photocopier
is more valued
than a CEO
page 14
Where is the
Energy market
headed?
C MPASS
PL M E O Y EE BEN EFITS RISK CONS U LTA N CY I NSU RAN CEAll about building bridges
page 18
What lessons does the Great East Japan
earthquake of 2011 hold for us?
PAGE 8
INSIDE:
Employee Benefits
Issue #3 2012
In Asia.
Since 1836.
Insurance Brokers
Risk Consultants
www.jltasia.com Issue #3 2012 Compass 1
LEADERSHIP
IN ACTION
6
Events
• JLT Indonesia sponsors Bank DanamonIndonesia (BDI)’s health fair in Jakarta.
• JLT assembles global and Asia specialists for Power symposium in Thailand.
• Upcoming: The 2012 session of the Asia Risk Council.
7
Talent
• JLT Malaysia’s new country manager. • JLT Asia appoints Managing Director of Thistle Asia.CONTENTS
C MPASS
OYEE BENPLEFITS EM RISK CONSULTANCY
IN
SUR
AN
CE
A year-and-a-half after the Great East Japan earthquake, the
country is still recovering, and dealing with the plethora of
issues relating to compensation, or the lack of it
2
14
23
4
18
8
Cover Story
Where is the Energy market headed?
The energy market environment is ever changing due to the volatile nature of this class of business globally. Energy markets in Asia are also especially competitive.
Flags on maps and global programmes
Providing an efficient global insurance programme requires much more than having a broker office in each country.
The biggest challenge for every risk manager
A slight change in approach can go a long way towards improving organisation-wide risk management practices.
When your photocopier is deemed
more valuable than your CEO
Companies understand how important their key men are, but most of them fail to purchase cover for them.
Building Bridges
Keeping track of a range of diverse benefits programmes, managing internationally mobile employees, and communicating benefits consistently to all staff, across linguistic and cultural barriers, are huge challenges.
The biggest challenge for
every risk manager
A slight change in approach can go a long way towards improving organisation-wide risk
management practices.
In many ways embedding risk management activities is no different from any other change management project. The enablers tasked with delivering the change tend to focus on the activities to be undertaken, individual roles and responsibilities, timelines for delivery, and expected outcomes. However change is more than just a technical project – it involves changing people’s understanding. It goes by Craig Paterson
R
isk Management has been a hot topic in business for the last 20 years, yet when you ask risk managers globally how well they are doing, many will tell you that embedding their activities is the hardest task of all. In many ways this is understandable – it is well known that people find change difficult and that without ongoing support, new practices and procedures quickly get forgotten and potential benefits go unrealised.RISk MANAGEMENt
beyond changing “hearts and minds” to addressing “fears and concerns”. At a fundamental level, it is the underlying cultural issues that determine if change can occur and, in turn, if risk management will achieve its objectives.
So what does this mean? There are three areas that should be considered in any change activity:
“
While every-
one is capable
of change, the
drivers for
change varies
from individual
to individual.”
www.jltasia.com Issue #3 2012 Compass 3
RISk MANAGEMENt
“
Change is
more than just
a technical
project. At a
fundamental
level, it is the
underlying
cultural issues
that determine
if change can
occur and, in
turn, if risk
management
will achieve its
objectives.”
www.jltasia.com Issue #3 2012 Compass 3
The biggest challenge for every risk manager
So where does this leave us in relation to embedding risk management activities into large, complex, global
organisations? Definitely in no easy position; however, by focusing on people, their needs, and how change can
develop, the opportunity to succeed will increase. After all, while we are creatures of habit, let us not short sell our ability to get comfortable with new behaviours.
A recent example of this is the work being undertaken by JLT for a major client in Asia. The operating company had been tasked with putting in place a Business Continuity Programme. As this is one of many initiatives they have to deal with, the operating company is focusing on timelines, deliverables and outcomes, whereas the holding company has realised that embedding will only come through training, education, support and engagement. We have been working with both parties to develop a change awareness programme that focuses on three parts of the operating company: (1) senior managers through training and education programmes, live simulations, and linking outcomes to personal performance measures; (2) the delivery team through user guides, performance dashboards and communication plans, whilst (3) for all staff, there is a mobile application competition, a web-based portal, and online certified training sessions.
By tackling the three levels of the operating company simultaneously, the opportunity exists to both drive the delivery of the project and in addition to engage colleagues dynamically, thereby increasing the chances
for long-term success.n
1.
ONLy yOu CAN CHANgE
Once an individual understands that they are responsible for changing themselves then change will occur. What is more important is people need to have the opportunity to determine how they change, rather than be told what to do. At the beginning then, by gaining real traction at the top, through sponsorship of the process by senior management that goes beyond emails, policies or town hall meetings to actually living the change, the wheels of change will start to turn, which then leads us to the next phase in change.
2.
CREATINg A RIPPLE EFFECT
People want to be comforted that the change they need to make is one that senior managers themselves have embraced and are following. More than
just a validation of the change, it is important for management at every level to resolve that “if they can do it so can I” – a key element in leadership. In the initial stage, ripples do not have to be of tsunami size, but just significant enough to show willingness on the part of employees to be involved in the change, and to be engaged.
3.
INFLuENCE CHANgE IN EvERy WAy yOu CAN
Change agents have to be resourceful – they have to look for the “space between the shapes”, that is, they have to recognise that while everyone is capable of change, the drivers for change varies from individual to individual. By engaging them through multiple focal points, slowly but surely, the change agent should be able to eventually get everyone involved in the initiative.
If you take a step back and remember the time you learned to drive – practically nobody passes their driving test without lessons, and in fact the majority of individuals take numerous lessons, practising under the care of family/friends as well as taking more than one test before they eventually pass. If you applied that learning method to embedding change, then what a change agent needs to do is to focus on many different activities to engage and embed new behaviours.
ENQUIRIES:
Craig Paterson
Director, Risk Consulting JLT Specialty Asia DID: +852 2864 5471
PERSoNAl lIfE
D
ifferent organisations hold different views on what “assets” mean. Ask any accountant and they will probably tell you that “assets = liabilities + owners’ equity”. Many business owners adopt the view that “assets = customers + more customers + even more customers”. However, should we not take “assets” to mean “anything that is of value”?From small firms to large companies,
almost every business undertakes
some form of insurance of their physical assets such as manufacturing facilities, plants, machinery, stock
inventories, and office premises, helping to mitigate potential financial
losses that arise from natural and manmade disasters. So, this begs the question, why is it that 27% of
companies have office equipment
protection but only 13% have key man insurance of any kind?
In other words, while companies understand how important their key
When your photocopier
is deemed more
valuable than your CEO
Companies understand how important their key men
are, but most of them fail to purchase cover for them.
by Jonathan Linstow
“
Key person
insurance ensures
the stability and
profitability of the
business, by insuring
against short run
capacity and the
possibility of losing
key employees.”
www.jltasia.com Issue #3 2012 Compass 5
“
27% of companies
have office equip
-ment protection
but only 13% have
key man insurance
of any kind.”
www.jltasia.com Issue #3 2012 Compass 5
PERSoNAl lIfE
men are, their behaviour suggests that
they deem their office equipment to be
more important.
Who should be regarded a
key person?
Very few companies cover themselves against the loss of their most important assets, the “key executives” of the company i.e. the person(s) at the helm who provide
financial and strategic direction to
their businesses, as well as individuals who hold special relationships with clients or contacts – in other words, individuals whose presence in the business is integral to its continued success.
The key to determining if an executive is a key person rests in asking a few key questions:
• Will the business be seriously impaired without him/her?
• Does he or she have unique skills that would be very hard to obtain in the industry?
• Does he or she have a special role or relationship with regard to a few key, large accounts?
• Will his or her absence from the company affect its stability in any way?
What are the risks?
Several facts illustrate the risks quite readily:
• In a scenario with four key male employees, there is a 29% chance that one of them will die before
retirement and a 68% chance one will suffer a critical illness.
• 70% of entrepreneur-owned businesses do not survive their founder.
• 65% of companies in a recent survey felt that the death of a senior employee would have severe impact upon their business, while 57% felt that if a key employee were to be off work due to health reasons for half a year, their business would be seriously affected. However, just
under a fifth of senior employees
had actually purchased cover. The above illustrate the likelihood of health risks faced by a company’s key men, and despite understanding
the risk and potential financial losses,
they do nothing to purchase cover for them; while more often they continue to protect their photocopier.
When is key person
insurance warranted?
What kind of business should have key man protection as part of their overall risk and insurance programme? Large corporations have many stakeholders who contribute to the stability of the business; smaller companies rely even more on their key managers – the business can easily fail without them.
In the unfortunate event that the key
person really does succumb to illness or injury and is unable to perform his duties, the business can use the payout from the policy for the following: 1. maintain the daily operations of the
business;
2. assure stakeholders of business stability by having a smooth
transition, using the money to find a
suitable replacement;
3. ensure that customers continue
to be satisfied with products and
services;
4. protect goodwill and supplement
profits suffered from the event.
The bottom line
Taking up key person insurance cover makes perfect sense for businesses whatever the scale; it
ensures the stability and profitability
of the business, by insuring against short run capacity and the possibility of losing key employees. It is a cost-effective method of protecting your business as well as its stakeholders.
Most companies purchase cover for
their office equipment. It is ironical
that they do not purchase cover for their key talent, the company’s most valuable asset.n
ENQUIRIES:
Jonathan Linstow
Divisional Director, Global and Consulting Jardine Lloyd Thompson Limited DID: +852 2864 5392
Email: Jonathan_Linstow@jltasia.com When your photocopier is deemed more valuable than your CEO
How it works:
The business decides to purchase key person insurance; the more common way to do this is to purchase cover at a rate that is five to 10 times the employee’s annual compensation. Another is to determine the amount which the key person contributes to business earnings and then make an estimate. The business then becomes the owner and the beneficiary of the policy insuring the key employee’s life. Upon the death of the employee, the employer collects the proceeds and uses the cash as management sees fit.
Employee Business
Premiums Death Benefit
J
LT’s focus has always been to encourage a holistic approach to health and wellness in its employee benefits programmes. In line with this, our Indonesian office sponsored Bank Danamon Indonesia (BDI)’s health fair on 12 July 2012 in Jakarta. The event was held in conjunction with the bank’s 56th anniversary.JLT Indonesia helped organise the whole event, and arranged for participation by various doctors and specialists from a hospital, a clinic, pharmacies, and a laboratory.
The half-day event also included health talks, a blood pressure checkup, blood sugar test, body mass index test,
and health insurance consultation. It was attended by more than 700 BDI employees.
In an address he delivered to BDI employees, JLT Indonesia’s chief operating officer, Phil Corrigan, elaborated on some of the main features and rationale behind the bank’s corporate wellness initiative. BDI also used the event to recognise the contributions of loyal employees – awards were handed out to employees who had served for 10, 15, 20, and 30 years.
Besides Jakarta, the BDI health fair was held in 6 other cities (Bandung, Surabaya, Makassar, Balikpapan, Medan and
Semarang).
This is the third year that BDI has been a part of JLT’s benefits programme. More than 125,000 of Bank Danamon’s employees across Indonesia are insured through the programme.n
J
LT brought together its specialists from across Asia to host an Insurance & Risk Management Symposium for the Power Generation sector in Bangkok on 4 July 2012. The event was attended by 50 representatives from major power and energy companies in Thailand.The panel of speakers/topics addressed included:
• “The risk landscape, post the 2011 floods in Thailand” by Andrew Minnitt, Managing Director of JLT in Thailand • “Project delays and the insurance
solutions available” by Stephen Boddington, Managing Director of Construction at JLT Specialty Asia • “Renewable energy projects and claims,
an insurers’ perspective” by Jatin Sharma, Head of Offshore Underwriting at GCube Underwriting Limited, London • “Quantifying your company’s risk
appetite and understanding the implications” by Craig Paterson, Director of Risk Consulting at JLT Specialty Asia
• “Contingent business interruption exposures, understanding the risks and guarding against them” by Richard Burridge, Managing Director of Energy at JLT Specialty Asia
• “The insurance market’s view of risk assessment and how this affects terms” by David Phipp, Technical Lines Manager at Ace Insurance, Singapore.
Managing Director of JLT Thailand, Andrew Minnitt, said: “There is no doubt that we will move from strength to strength within the sector as a result of initiatives such as this. JLT’s focus has always been to enhance sector-specific knowledge so that insurance buyers and risk managers are best equipped to make the right decisions.”n
JLT assembles global and Asia specialists for Power symposium in Thailand
lEADERShIP
IN ACtIoN
Events
www.jltasia.com Issue #3 2012 Compass 7
lEADERShIP
IN ACtIoN
M
ichael Leong, an insurance practitioner with more than three decades of experience, has been appointed Chief Executive Officer of JLT Malaysia, subject to approval from Bank Negara Malaysia.Michael has held various senior positions over the years in underwriting and insurance broking. His last appointment was CEO of Insfield
Insurance Brokers.
He is actively involved in the insurance industry, through his involvement as an executive committee member of the Malaysian Insurance and Takaful Brokers Association, alongside outgoing country manager Alex Low, who chairs the Association.n
JLT Asia appoints Malaysia country manager
D
avid Chan has been appointed Managing Director of Thistle in Asia. Thistle was created to distribute and manage non-brokered insurance products and facilities to the consumer and middle market sectors.Throughout the last 17 years, David has been responsible for developing and managing personal lines and SME commercial portfolios in Australia and Asia. His responsibilities have included strategy formulation and execution, portfolio management and sales.
David was most recently the Head of Personal Lines with Guild Insurance Ltd in Australia. In
this capacity, he was responsible for starting up the company’s personal lines division, strategy formulation and execution, new products and pricing, distribution channels and websites.
Prior to Guild Insurance, he was with Ace Asia Pacific as their Regional Personal Lines Manager, in which capacity he oversaw the personal lines insurance business across the Asia Pacific – in particular, Singapore, Malaysia, Taiwan, and Australia. He was also with Lumley General Insurance Ltd in Australia, and Hong Leong Assurance Berhad in Malaysia.n
Managing Director, Thistle Asia
Michael Leong
David Chan
Talent
Asia Risk Council to discuss future of risk management in Asia
T
he 2012 session of the Asia Risk Council will be held in Hong Kong in October and is expected to attract participation from more than 80 risk managers and professionals from around the region. This is the sixth consecutive session, with attendance continuing to grow every year, and the number of industries represented expanding.The ARC sessions are highly interactive events with delegates immersed in real life situations and role plays. The emphasis of the event is to share knowledge and experience between delegates and to cultivate an interest
in best practices within the Asia risk community. The event will be held over two days and cover a number of topics, two of which include:
1. “The Risk Manager Challenge” – participants will be split into groups and asked to develop an insurance and risk programme for a theme park. Prizes will be awarded to the winning proposal/presentation.
2. A session on risk tolerance and appetite – participants will be spilt into groups and asked to determine their risk appetite (how much risk the group is prepared to take) for a budget airline in Asia. Findings will be
presented, and a lively and energetic discussion is expected, if previous ARC sessions are any indication.
This is a valuable forum for risk managers and if you would like to learn more about the event or request a place for one of your clients or prospects, please contact your JLT account manager.n
NAtuRAl
CAtAStRoPhES
A year-and-a-half after the Great East Japan earthquake, the country is still
recovering, and dealing with the plethora of issues relating to compensation, or
the lack of it.
Could we have been
better prepared?
W
hen sorrows come, they come not in single spies. But in battalions!” Shakespeare’s Hamlet could well have been describing the Greatby G. Randall Wada and Yoshikimi Kawanami
East Japan Earthquake of March 11, 2011. Like a row of dominos, the orderly structure that pervaded a society unravelled on that day as an earthquake ushered in a tsunami, which in turn triggered a nuclear
incident, and the combined effect of this triple whammy was to bring the entire country to a virtual standstill. While earthquakes are a normal part of life in Japan, this one was no
www.jltasia.com Issue #3 2012 Compass 9
ordinary tremor. It measured 9.0 on the Richter scale and the tsunami that came shortly rose to a height of up to
43 metres. Oil and other flammable
chemicals spilled as storage tanks and
boats were overturned. The floating
oil in the seas became a cauldron
for blazing fires. Reactors 1, 2, 3 and
4 of the Fukushima Daiichi Nuclear Power Plant were severely damaged, as none had foreseen the waves to rise so high (a classic study on black swans) triggering a massive radiation leak. Tokyo Bay, situated about 220 kilometres from the seismic centre, was affected by widespread soil liquefaction, causing serious damages
to houses, office buildings, roads and
utilities.
Understanding the losses
Almost 16,000 people died from the calamity, with more than 3,000 people still unaccounted for. Total damages are estimated to be in the region of JPY16.9 trillion. There is also the yet-to-be resolved matter of some 25 million tonnes of rubble, including material contaminated by radioactivity. The Japanese government has estimated total revival to take at least 30 years or as long as 50 years, and costing as much as JPY23 trillion. Many thousands of people are also being relocated.
While the world has witnessed nuclear accidents before, the Fukushima nuclear incident holds
the dubious honour of being the first
triggered by a natural disaster.
NAtuRAl
CAtAStRoPhES
“
Step 1:
Understand your
exposures so you
can clearly present
your risk.”
(2) Damage to buildings and houses
Completely destroyed: 129,500 Partially destroyed: 256,324 Totally and half burnt: 281
Inundation above floor
level*:
20,434
Inundation under floor
level*:
15,513 Partially damaged: 703,411
*Floor levels of Japanese houses are typically around 45 - 50 centimetres from the ground.
(3) Damage to fishery business
Fishing boats: 21,000 Fishing ports: 319 Processing facilities: • Totally destroyed • Partially destroyed • Inundated 424 87 128 Damage to aquaculture facilities: JPY91.9 million (4) Costs to enterprises Bankrupted companies: 644 Extraordinary losses suffered by listed companies: JPY925 billion
Destroyed by fire, either
totally or partially:
1,356 (38.2% of all listed companies.). It should be noted that although the Tohoku area of Japan is not the domicile of many of Japan’s largest corporations, their direct property damage was relatively modest. However, a vast number of these
companies experienced material financial losses
resulting from disruptions to their supply chains.
Within the 30 kilometre “no-go zone” that was established, over 2,200 enterprises, with overall sales of over JPY550 billion, had to effectively close.
Could we have been better prepared?
Table 1: The Great East Japan earthquake – a breakdown of the costs (as of 2 May 2012)
(1) Human costs
Deaths: 15,858 (Figure does not include elderly people who have died in the refugee camps.)
Missing: 3,057 Injured: 6,077
Response from the Japanese
compensation system
Cover for private residences
Japan is earthquake country. However, compared with other ordinary risks, the frequency of earthquakes is quite small. In addition, earthquake exposures
are often limited to specific areas
and the insurance community generally believes that the “law of large numbers*” does not apply to earthquake risks, and are therefore “less insurable”. Furthermore, houses in Japan are mainly constructed from wood, and when an earthquake
occurs, the resulting fire causes
enormous losses. As such, since early times, Japanese insurance companies have excluded earthquake risk from
their fire insurance policies.
Current regulations pertaining to earthquake coverage are as follows: a. Earthquake cover shall be
automatically included in the fire
insurance for dwelling houses and household equipments at additional premiums. (It is possible to exclude
NAtuRAl
CAtAStRoPhES
“
Step 2:
Create a clear
broking plan and
marketing strategy.”
Table 2: Extraordinary losses recorded in the accounts of listed companies
Company Extraordinary loss
(JPY million)
Details of major damages/ costs
Tokyo Electric Power Co. Ltd.
2,096,432 Fukushima Daiichi Nuclear Power Plant
Tohoku Electric Power Co. Ltd.
173,124 Onagawa nuclear generation plant stopped operation, Sendai thermal power plant and Shin Sendai thermal power plant were damaged and sales dropped.
JX Holdings Co., Ltd. 137,124 Sendai oil refinery and Kashima oil refinery were
damaged. Sumitomo Metal
Industries Ltd.
74,361 Equipment at Kashima iron mill were damaged.
Nippon Paper Co., Ltd. Group
71,175 Ishinomaki, Iwanuma, and Nakoso factories were heavily damaged.
East Japan Railway Company
70,967 Costs to resume railway operations.
Renesas Electronics Corporation
62,229 Eight factories ceased operations. Naka factory (manufacturer of car navigation systems) was heavily damaged.
Nissan Motor Co., Ltd. 60,7313 2,300 cars were damaged by the tsunami.
The 77 Bank Ltd. 50,687 Various buildings located at the coast were completely or partly destroyed.
JFE Holdings Co., Ltd. 41,359 – AEON Co., Ltd. 30,459 – Mitsubishi Chemical
Holdings Corp.
29,005 – Shin-Etsu Chemical Co.,
Ltd.
26,344 – Nippon Steel
Corporation
23,720 –
Japan Tobacco Inc. 23,616 Sales offices, distribution
centres, factories and materials plants were damaged.
Sources: Tokyo Shoko Research Ltd. (2012.3.9), the Nikkei and Tokyo Shimbun.
Could we have been better prepared?
*Law of large numbers in insurance: “A statistical axiom that states that the larger the number of exposure units independently exposed to loss, the greater the probability that actual loss experience will equal expected loss experience. In some instances, insurers can virtually eliminate their risk of loss by securing a large enough number of units in an insured group.” – IRMI.com website.
www.jltasia.com Issue #3 2012 Compass 11
NAtuRAl
CAtAStRoPhES
Could we have been better prepared?
1923 Kanto earthquake
– a defining moment in
insurance history
1923 was the year that the “big one” hit Tokyo. It measured 7.9 on the Richter Scale, causing massive losses. The casualties included over 100,000 dead and missing, over 200,000 homes damaged by the earthquake and over 200,000
homes savaged by the fires
following the earthquake. Losses were estimated at over JPY5 billion, which was more than three times the national budget of JPY1.5 billion then. The estimated total amount of damage to the insured homes was JPY1.6 billion while the total assets of the entire Japanese insurance industry was only JPY200 million.
The fact that the earthquake
and the fire following it excluded
perils (and therefore technically there was no coverage), created a huge social issue. The insurance industry covered for the post-
earthquake fires on an ex-gratia
basis, borrowing money from the government. It wasn’t until 1950 that the insurance industry paid back the last of the borrowed money. In 1966 the government sought to deal with the issue by passing several acts which established the current system of earthquake insurance for dwelling houses and households, backed by a government
reinsurance scheme. earthquake cover.) Standalone
earthquake insurance is not allowed.
b. Coverable assets include residential properties as well as its contents. c. Earthquake insurance covers
assets lost to fire, damaged, buried,
washed away or destroyed by volcanic eruptions.
d. Insured amounts shall be within 30
to 50 percent of the fire insurance,
with limits of JPY50 million for dwelling houses and JPY10 million for household items.
e. Premium rates will be calculated by the Non-Life Insurance Rating Organisation of Japan.
f. Claim amounts are dependent upon the degree to which the house or household items are damaged. g. Limit of total payment per
occurrence is JPY6.2 trillion. h. Reinsurance scheme.
Cover for enterprises
Earthquake risks faced by corporations are written by commercial non-life insurance companies. There is no government backed pool or reinsurance to support this risk. Currently, Japan has 24 domestic and 17 foreign insurance companies with licenses to operate. Many of these insurance companies will underwrite earthquake risks, but depending upon their overall
financial position, they must reinsure
a substantial portion of earthquake risks written by them with the global reinsurance market.
Japanese insurance companies underwrite earthquake risks according to the zone in which the insurable company is located (see page 12). Zone 5 includes the capital city of Tokyo and is the largest industrial area in Japan. Zone 5 is famous for devastating earthquakes over several centuries – i.e. the Genroku Earthquake of 1703 (Magnitude 8.1) and the Kanto earthquake of 1923 (Magnitude 7.9).
Thanks to its notorious reputation, the demands of various enterprises for earthquake cover in Zone 5 are quite large. Practically each insurance company has exhausted its capacity and from the viewpoint of accumulation of risks, this also creates problems in respect of reinsurance capacity – reserved capacity for new earthquake risk is coverable, but only at a premium price.
The Kansai district (Zone 8) is another industrial area that was regarded to be relatively safe until January 17, 1995, when the massive Hanshin Awaji Earthquake occurred. Many earthquake disaster event models predict a high likelihood of a major earthquake in Zone 6, the Nagoya area, home of Toyota. Coincidentally, the zones with the highest concentration of industrial values, Zone 5, 6, and 8, are also the areas with the highest earthquake risks.
Earthquake insurance policies essentially provide coverage for property damage. Capacity for loss
JPY104,000 mil JPY691,000 mil JPY6,200,000 mil
JPY5,418,500 mil JPY104,000 mil
JPY293,500 mil
JPY90,500 mil JPY293,500 mil
Reinsurance written by the local insurers Reinsurance written by the government
NAtuRAl
CAtAStRoPhES
Could we have been better prepared?
of profit or business interruption is
comparatively scarce in the market. As a result of the Great East Japan Earthquake of March 11, 2011, many enterprises suffered contingent losses including losses caused by disruptions to supply chains. It is believed that
demand for cover for loss of profit or
business interruption and loss caused by damage to supply chains will rise and become an increasingly important issue. It is clear that most enterprises including the largest industrial corporations are not adequately covered for this risk.
It is clear that securing adequate earthquake risk coverage for both Property damage and Business Interruption is not a simple and straightforward process. There are many variables which must be managed in order to secure adequate
coverage and each client’s situation is different. There are a few important basic steps which apply to all clients.
The first step is to understand
your exposures. This includes having solid asset evaluations. It is equally important to identify and truly understand one’s business interruption potential and supply chain disruption quantum.
In order to clearly present your risk, professionally prepared engineering reports on physical assets are crucial.
For larger value assets it is important to perform various analyses regarding earthquake event modelling and the creation of a probable maximum loss scenario. These types of technical analyses are prepared on both a location basis as well as a portfolio basis.
The second step is to develop a clear broking plan and marketing strategy, based on the premise that you are seriously and aggressively “selling your risk” to the insurance market. To the best extent possible you must quantify your risk.
The third step is to access the global insurance market. An approach must be established for the domestic market as well as the global market. Assembling adequate and cost effective catastrophe insurance capacity requires adroitly utilising the risk appetite and worldwide capabilities of both domestic licensed underwriters as well as global carriers who can supply capacity through corporate facultative reinsurance.
Executing the strategy to secure optimal earthquake covers requires a comprehensive understanding not
1
Honshù Hokkaidò Shikoku Kyùshù Sendai Niigata Aomori Shizuoka Tokyo Kanazawa Otsui Kòchi Kagoshima Matsue Yamaguichi SapporoSeismic Zone Perfecture Main City
Okinawa
2
3
4
5
6
7
8
9
10
11
12
1 2 2 2 2 3 3 3 4 4 4 4 5 5 5 6 6 6 6 6 6 7 7 7 8 8 8 8 8 8 9 9 9 9 9 10 10 10 10 11 11 11 11 11 11 11 12 Hokkaido Akita Aomori Nigata Yamagata Fukushima Iwate Miyagi Gunma Ibaraki Saitama Tochigi Chiba Kanagawa Tokyo Aichi Gifu Mie Nagano Shizuoka Yamanashi Fukui Ishikawa Toyama Hyogo Kyoto Nara Osaka Shiga Wakayama Hiroshima Okayama Shimane Tottori Yamaguchi Ehime Kagawa Kochi Tokushima Fukuoka Kagoshima Kumamoto Miyazaki Nagasaki Oita Saga Okinawa Sapporo Akita Aomori Nigata Yamagata Fukushima Marioka Sendai Maebashi Mito Saitama Utsunomiya Chiba Yokohama Tokyo Nagoya Gifu Tsu Nagano Shizuoka Kofu Fukui Kanazawa Toyama Kobe Kyoto Nara Osaka Otsu Wakayama Hiroshima Okayama Matsue Tottori Yamaguchi Matsuyama Takamatsu Kochi Tokushima Fukuoka Kagoshima Kumamoto Miyazaki Nagasaki Oita Saga Okinawa“
Step 3:
Access the global
insurance market.”
www.jltasia.com Issue #3 2012 Compass 13
NAtuRAl
CAtAStRoPhES
Could we have been better prepared?
ENQUIRIES:
g. Randall Wada Chief Executive Officer JLT Holdings Japan Co., Ltd. DID: +813 6730 3500
Email: Randall_Wada@jltasia.com yoshikimi Kawanami
Chief of Staff
JLT Risk Services Japan Limited DID: +813 6730 3532
Email: Yoshikimi_Kawanami@jltasia.com
only of the global insurer’s appetite, but also of their underwriting process. In all cases, the underwriting information must be reinforced by full and proactive disclosures.
Despite the rather high catastrophic loss possibility, the high level of value accumulation and limited capacity, an adequate and
financially viable earthquake
insurance programme can still be achieved if the correct approach is taken.
Japan’s nuclear damage
compensation system
The Nuclear Compensation
Act in Japan provides for the following: 1. The Act imposes unlimited strict
liability on the nuclear operator: i.e. disaster victims do not need to prove the guilt of the operator. 2. Nuclear damage liability is solely
concentrated on the nuclear operator.
3. The nuclear operator is required to undertake insurance, to be in a position to compensate for damages quickly and absolutely.
4. If a nuclear damage that exceeds the amount of compensation provided for by the Act occurs, the government should provide the necessary assistance to the nuclear operator.
Maximum compensation amounts vary, depending on the type of nuclear reactor. In the event of a nuclear damage that does not fall under the scope of a “grave natural disaster of exceptional character”, private insurance companies are liable for compensation amounts of up to JPY120 billion. Japanese insurance companies have established an atomic energy insurance pool to provide coverage and help support compensation.
The government acts as a further
backstop for compensation through
financial, budgetary provision and tax
measures, etc.
The 1960 Paris Convention on Third Party Liability in the Field of Nuclear Energy (OECD) and 1963 Vienna Convention on Civil Liability for Nuclear Damage (IAEA) provide exclusion to the operator if the incident is deemed to be of “a grave natural disaster of exceptional character”. Similarly, the Japanese Act on Compensation for Nuclear Damage excludes the nuclear operator from liability for damage if the event is deemed to be of “a grave natural disaster of exceptional character”.
A “grave natural disaster of exceptional character” is generally understood to include events such as unprecedented great earthquakes, exceptional volcanic eruptions and
unparalleled wind and flood disasters.
An earthquake more than three times the magnitude of the massive Kanto Earthquake (of magnitude 7.9) would be regarded as a natural disaster of exceptional character. Consequently, the Great East Japan Earthquake (Magnitude 9.0) has not been treated as a “grave natural disaster of exceptional character” by
the government.
In spite of the existence of legislation regarding compensation,
final settlement will take a long
time because the current state of the nuclear reactor with regard to meltdown chances cannot be ascertained, due to extremely high radioactivity. Serious questions remain regarding the time needed to get the reactors under a reasonable level of control as well as the subsequent cleanup. It will be a long time before people’s lives return to close to normalcy.
The Great East Japan Earthquake has the infamous distinction of being ranked among the “big ones”. Unfortunately an earthquake of this magnitude is predicted to happen again within the next 60 years. Hopefully we will be better prepared for the next big one.n
Minister of Education, Culture, Sports, Science and Technology Relief Funding (Grants, Investments &
Loans)
Approval of the Measures for Nuclear
Damage Liability
Guide to judge scope of nuclear damage, etc. Mediation to achieve amicable settlement
Amount of Damage (unlimited) Amount of Measures for Compensation
JPY120,000 mil Nuclear Damage Liability Facilitation Fund Nuclear Damage Liability Strife Examination Board
Nuclear Operator assumes compensation for all loss and damage (Unlimited Liability)
(+ Provisions for Government assistance exist when it is recognised to be necessary)
Measures taken by the Goverment (Measures necessary for the support of
claimants, both financial and other,
and to limit damages.) » Operator is not liable Commotions and extraordinarily great natural disaster
Earthquake, Volcanic Eruption, Tsunami General Accident
Nuclear Operator (Strict Liability and Concentration of Liability to the Nuclear Operator)
Measures Compensation
Claimants
Private Insurance Contract (Nuclear Damage Liability Insurance
Contract)
Goverment Compensation Contract (Contract for Indemnification of Nuclear Damage Compensation)
Appointment
ENERGy
L
loyd’s Singapore was set up in 1999 through initial representation by the Catlin and Watkins Syndicates. The main driver for these syndicates to establish underwriting teams in the region was the need to service their clients through a local channel – to deliver timely service without waiting for London to open for business.This was followed a few years later through the setup of the only Asia based Lloyd’s Syndicate – AMS (Asia Marine Syndicate) – who were not represented in London. AMS was created to
underwrite regional business following the development of Catlin and Watkins Asia syndicates, who were now underwriting business successfully and in excess of their original aspirations and business plans.
In 2006, Chaucer Syndicate in London hired a key energy underwriter and decided to set up a sister syndicate in Lloyd’s Singapore to capture Asian energy business, which was growing significantly, in tandem with the developing Asian economies. This move was based on the Lloyd’s of
Where is the Energy
market headed?
The energy market environment is ever changing due to the volatile
nature of this class of business globally. Energy markets in Asia are also
especially competitive.
www.jltasia.com Issue #3 2012 Compass 15
Where is the Energy market headed?
London drive to develop Lloyd’s platforms across the world – to diversify their portfolio and capture business via a more cost-effective formula.
growing competition
Lloyd’s in London had been suffering from heavy competition, with the company markets moving their operations to tax “havens”, which enabled these companies to provide cheaper products and solutions. With China and India rapidly growing, and Lloyd’s Singapore already in place, syndicates quickly followed the Chaucer drive, to either penetrate the Asia energy market and/or relocate energy class underwriters to underwrite this business from Singapore. Watkins already had an active energy underwriter and Catlin quickly hired a key energy underwriter to enable them to compete with the likes of Chaucer and Watkins.
Between 2006 and this present day, 18 Lloyd’s syndicates have been established in Asia, along with all the key company markets. The only two major syndicates that are not currently represented are Hiscox and Brit, who continue to write Asia business through their London operations. The majority of these new “sister” syndicates were set up in the main as small operations focusing on Energy related businesses, which later grew to cater to Marine/Cargo/Hull/P&I – all perceived as natural derivatives to Energy.
The Asia markets developed faster than expected and it has become clear that possible concerns in respect of the market’s longevity
(based on previous experience following the rise and fall of the French and Norwegian markets) are wide off the mark. Today, a number of these syndicates have grown into large entities underwriting multiple classes of insurance/ reinsurance businesses, with specialist
underwriters employed for this task. As an example, Catlin grew from a 15-man operation
to a company of 100, with plans to further expand and open additional offices in other countries across Asia.
Pioneering role
The broking industry has always been well represented in Asia, especially within Singapore and Hong Kong, though Energy was not always a focus. In fact JLT was the only qualified broker in Singapore with a technical Energy team (especially Upstream) serving and placing business until 2005, when other brokers decided to mobilise their energy experts into the city state. The drive behind the Monetary Authority of Singapore’s decision to allow tax efficiency on Marine and Energy business and the drastic move for Lloyd’s syndicate to set up in Singapore, reassured brokers of the future of this market and the need to heavily invest in resourcing. JLT was already ahead of the game however, and today remains the broker with the largest and most experienced energy team in Singapore, helping local and international energy companies achieve optimum global risk financing solutions through a local channel.
Today’s energy market environment is ever changing due to the volatile nature of this class of business globally. Energy markets in Asia have always been more competitive than their London counterparts, mainly due to lower overheads, local focus, and the tax efficiency offered by the MAS. Some London energy markets (particularly those not represented in the region) however realised that the Asian energy market was starting to take business away from them, and decided to revise their rating model, so that they can at
“
The Asia markets
developed faster than
expected and it has
become clear that possible
concerns in respect of
the market’s longevity are
wide off the mark.”
ENERGy
“
JLT remains the broker
with the largest and most
experienced energy team
in Singapore, helping
local and international
energy companies achieve
optimum global risk
financing solutions through
a local channel.”
Asia’s largest
energy broking team
In 2009 and 2010, JLT
generated more energy
premium into the Lloyd’s
insurance market than
any other company.
We are brokers to some of the largest
oil and gas producers in Asia.
Richard Burridge Managing Director Asia Energy T: +65 6411 9388 E: Richard_Burridge@jltasia.com George Nassaouati Managing Director Energy (Construction) T: +65 6411 9305 E: George_Nassaouati@jltasia.com Julian Ling Regional Director
Energy (Power/Onshore Oil & Gas) T: +65 6411 9359
E: Julian_Ling@jltasia.com
JLT is at the forefront of developing risk solutions for emerging trends in the energy sector. Leveraging our understanding of the industry, presence in the energy market and innovative ability, we design and deliver creative and cost-effective solutions to our clients. We provide a range of insurance and risk management services to clients involved in exploration and production in this sector.
For more information, please contact:
ENQUIRIES:
george Nassaouati
Managing Director, Energy (Construction) JLT Specialty Asia
DID: +65 6411 9305
Email: George_Nassaouati@jltasia.com Where is the Energy market headed?
ENERGy
“
In view of the number of Asian
risks declining due to the entire
region cooling down economically,
competition is significantly increasing,
resulting in lower prices and wider
coverage to clients in the region.”
times provide more competitive terms than their counterparts in this region.
Although there is no official Lloyd’s setup in the Middle-East, many Lloyd’s syndicates went into joint venture agreements with local Middle-Eastern insurers to underwrite Middle-Eastern and African business from Dubai (UAE) and Manama (Bahrain). The border between the Asia and Middle-East energy markets has always been flexible as Asian markets have always led or supported Middle-East and Africa-based business and vice versa.
Price war
In the last few years, Middle-East markets have developed into key lead markets and have started competing against London and Asian markets through lower prices. This ignited a price war between London, Asia, and Middle-East markets,
with London having an edge in this battle in view of their vast resources, experience, past reserves, and leverage. Asian markets, however,
are responding promptly to London’s approach and are revising their model to enable them to compete not only on price but also in terms of their solutions, services and leveraging their experience in the region.
JLT Energy is a key player in supporting markets around the world and where possible to drive local business in local countries where feasible. While many companies are price-sensitive, our experience working with them has taught them to appreciate a better local service and placement, which allows for a better response time and partnership approach.
JLT Energy Singapore ensures that our clients receive immediate attention from energy markets in the region for their requirements and risk financing solutions, especially through a prompt claims management service. Our goal is not only to provide a highly commercial and service driven client approach, but to challenge markets to settle claims as promptly as possible – easing the cash flow challenges of our clients through our expert placement/claims energy team. Our objective is to deliver a global service through local channels.
Asian energy markets are currently faced with a dilemma, as they need to generate stable and continuous growth to sustain their optimistic business plans. Energy market conditions are not improving as the long expected energy market hardening has not materialised. In view of the number of Asian risks declining due to the entire region cooling down economically, competition is significantly increasing. This competition is translating into lower prices and wider coverage to clients in the region. We are ready to capitalise on this competition and help you achieve an optimum balance between price and coverage.”n
www.jltasia.com Issue #3 2012 Compass 17
Asia’s largest
energy broking team
In 2009 and 2010, JLT
generated more energy
premium into the Lloyd’s
insurance market than
any other company.
We are brokers to some of the largest
oil and gas producers in Asia.
www.jltasia.com
Richard Burridge Managing Director Asia Energy T: +65 6411 9388 E: Richard_Burridge@jltasia.com George Nassaouati Managing Director Energy (Construction) T: +65 6411 9305 E: George_Nassaouati@jltasia.com Julian Ling Regional DirectorEnergy (Power/Onshore Oil & Gas) T: +65 6411 9359
E: Julian_Ling@jltasia.com
JLT is at the forefront of developing risk solutions for emerging trends in the energy sector. Leveraging our understanding of the industry, presence in the energy market and innovative ability, we design and deliver creative and cost-effective solutions to our clients. We provide a range of insurance and risk management services to clients involved in exploration and production in this sector.
D
eveloping, maintaining and communicating the features of a cost-effective, attractive andconsistent employee benefits
programme is challenging for any employer – but especially so for international companies.
Legislation differs from country to country, there are different traditional
approaches to benefit
provision, and many local providers of insurance and
services to manage. Last but not least, there are cultural and language differences to manage.
Building a following
Whilst a globalised
approach to benefits is
desirable for consistency and
cost-efficiency, it is not always
supported by international solutions that are workable in each country. Having said this, there are steps that can be taken to improve
EMPloyEE
BENEfItS
Keeping track of a range of diverse
benefits programmes, managing
internationally mobile employees,
and communicating benefits
consistently to all staff, across
linguistic and cultural barriers, are
huge challenges.
by Peter Whittington
www.jltasia.com Issue #3 2012 Compass 19
EMPloyEE
BENEfItS
consistency and take full advantage of a company’s overall size and presence. These include specialist regional plans, multinational
pooling and flexible benefits
programmes. In addition, through the development of a consistent look and feel
for the employer’s benefits
delivery platforms, along with common renewal dates and standard service levels across
territories, codified in formal
agreements with suppliers,
greater value can be obtained
from the company’s benefits
proposition to employees. Keeping track of a range of
diverse benefits programmes,
managing internationally mobile employees, and
communicating benefits
consistently to all staff, across linguistic and cultural barriers, are huge challenges. Many international companies
miss out on the efficiencies
delivered by a global or regional strategy, and risk
under or over insuring
benefits in certain countries.
Even worse, the absence of benchmarking information
to ensure that benefits stack
up to competitors’ offerings,
Building
Bridges
“
Bridges brings together
a client’s regional
or global benefits
programmes into a
single portal.”
could have an adverse effect on talent recruitment and retention.
Even if the programme is well designed and appropriate, a failure to communicate its features clearly to all staff can reduce its success. Communication material must be up-to-date and complete, and be
abreast of changing fiscal
and legislative requirements. Not communicating the correct level of cover to the employee could result in misunderstandings and worse, uninsured liabilities.
Building an
international
proposition
To help our clients address these numerous challenges, JLT Asia has developed “Bridges” a multinational service proposition that is delivered via an internet based platform to employers and employees.
Bridges brings together a client’s regional or global
benefits programmes into a
single portal, providing online
access to benefits details and
data for all stakeholders,
configured to meet their specific needs. It encompasses
a range of system capabilities,
accessed through a single
benefits information portal,
and protected by passwords, giving each user access to information appropriate to his/her role.
Building resilience in
an economic crisis
During growth years,
Building Bridges
when the war for talent
was fierce, healthcare was
viewed as a means to attract and retain staff, as well as to be a socially responsible employer. However, as the
financial crisis hit home and medical inflation soared, this
obligation to employees is being put to the test.
EMPloyEE
BENEfItS
Employers with online access to corporate benefits plan
information, including:
• Details of benefits plans offered to all staff, profiled by
country or location, staff level, and/or department – all accessible to the client’s regional decision makers from a single platform (local decision makers can be given access to regional details, or just their own country, as required).
• A portal through which to communicate, and access information from JLT, insurers and other providers, and make that available to the client and employees.
• Claims reports from insurers, and utilisation analyses conducted by JLT experts.
• A corporate health & wellness portal, including important information to aid in developing a bespoke programme for the client.
• Available benchmarking information.
• JLT service level agreements at regional and/or local levels.
Employees with password controlled online access, to
their benefit details, including:
• Full benefits booklet including details of cover and
provider contacts.
• All information can be delivered in the local language (and/or English). Bridges can handle any character sets e.g. Chinese, Japanese, Arabic etc.
• Full content management, whereby JLT takes
responsibility for updating the benefits information.
• Access to online offerings of insurers (if available from the insurer), e.g. claims submission and tracking.
• Access to the health and wellness portal including a
fitness calculator, along with advice from JLT Asia’s
medical doctors on staff.
www.jltasia.com Issue #3 2012 Compass 21
Bridges is the future of JLT Benefits Solutions’ service proposition in Asia. It will in time be deployed to all our clients, whether local or international. Most importantly, Bridges is free for clients of JLT. To find out what Bridges can deliver to you and your employees, please contact:
“
Even if the
programme is
well designed
and appropriate,
a failure to
communicate its
features clearly to
all staff can reduce
its success.”
EMPloyEE
BENEfItS
Building Bridges
Peter Whittington
Regional Director, Benefit Solutions Asia Jardine Lloyd Thompson Asia
DID: +65 6411 9574
Email: Peter_Whittington@jltasia.com
Unlike many complicated technology deployments, Bridges does not take months to implement and does not require vast amounts of resources and support.
Bridges is easily configured
to client’s needs, and requires only basic employee data, with
no confidential or sensitive
details required. In fact it is possible to launch Bridges within 4 to 6 weeks of the client agreement.n
JLT Asia works with the local broking teams and clients
to tailor Bridges to meet the specific requirements of
each client, including:
• Mode of access, i.e. via client intranet, or directly through the internet (which has the advantage of providing staff with 24/7 access).
• Security, including password profiling to ensure
appropriate user access to information.
• Client preferences regarding ‘branding’ of the site.
• Employee site content.
• HR site content.
• Links to insurer systems, and access (if any) to be provided to insurers.
BRIDGES
Bridges is straightforward to implement and intuitive
to use:
JLT Benefit Solutions -
bridging your needs
5
Clear Benefits
Cost Control
Attraction &
Retention
Productivity
Knowledge/
Power
Improving
Employees’
Health
www.jltasia.com
For more information, please contact:
George McGhie
Managing Director, Benefit Solultions Asia
Tel: +65 6411 9577
www.jltasia.com Issue #3 2012 Compass 23
JLT Benefit Solutions -
bridging your needs
5
Clear Benefits
Cost Control
Attraction &
Retention
Productivity
Knowledge/
Power
Improving
Employees’
Health
www.jltasia.com
For more information, please contact:
George McGhie
Managing Director, Benefit Solultions Asia
Tel: +65 6411 9577
Email: george_mcghie@jltasia.com
Providing an efficient global insurance programme requires much more than
having a broker office in each country.
A
s Asian companies venture overseas and expand into new markets in greater numbers, the need to ensure that insurance programmes are seamless, whilst complying with increasingly vigilant insurance and tax authorities, becomes more relevant.For businesses with risks in
territories outside their home country, the time comes when they must consider whether their interests are best served by a “global” insurance programme. Related to this is the question of whether a client is best served by appointing one broker. If so,
is the number of flags on the map an
indication of their service capability?
In relation to the first question,
the rationale for global insurance programmes over separately procured
local policies is well known. Benefits
include:
• Uniform level of cover applied across companies/countries
• Elimination of gaps or costly overlaps in cover
• Economies of scale and leverage in negotiating with insurers
• Streamlined administration including coordination of claims There are several international insurers operating in Asia with capability and capacity to provide global coverage. That said, their service will still need policing, such as timely issuance of local policies, collection of premiums and ensuring local policies are competitive with what a subsidiary may be able to source from local competitors.
This is where an international broker, with experienced staff across several countries can add value, in terms of designing, placing and administering global programmes. This requires detailed knowledge of local insurance markets, practices, and
efficient coordination of services.
A further critical area is in the provision of compulsory local
insurances, or ancillary classes outside the global programme. In many cases
the global insurer may not be the best provider of these other classes and a broker with local expertise is valuable in placing these essential insurances, which will vary by territory. This again
requires efficient coordination.
Compliance considerations
Additionally, a broker will be able to manage the many compliance issues that clients may face in different legislations. These may relate to tax issues where local governments will look to “maximise” tax income. For example where “Difference in
Flags on maps
and
GloBAl
PRoGRAMMES
by Simon Weaver
global programmes
“
JLT is willing
to listen to our
clients and provide
alternate solutions,
often challenging
the traditional global
insurance model.”
Conditions/Difference in Limits” (DIC/ DIL) cover is provided this may in theory be illegal. Therefore when claims payments are triggered under this clause within a master policy, the actual payment into the country where the claim occurred may attract tax scrutiny.
Whilst global programmes may not always be fully compliant, a broker will try to provide clients with the best advice possible. At the same time, achieving full compliance may attract additional cost, if for example local policies are designed to mirror the master policy as closely as possible.
This is where the broker comes in and ideally has a strong network of
experienced offices working closely
together to provide seamless service, whilst advising the client on how best to structure the global programme.
If the broker adds value, then we can
return to the flags on maps question. Having a broker office in each country
can be advantageous. However, delivering consistent standards of service can be a delicate balance with providing clients with a choice in terms of service providers from country to country.
The JLT International
Network
The JLT International Network Partners form the core of the Network, underpinned by an exclusive trading agreement and operating service standards. Our partners are among the top/leading brokers in Europe: SIACI SAINT HONORE, GrECo, MAG JLT, March JLT and Ecclesia.
A further 84 Network members make the JLT International Network the second largest broker network in the world.
The Network’s members are independent local brokers selected for their strong domestic expertise, knowledge, quality and reputation
in the market. The majority of these relationships are longstanding: a track record of high-quality service and ability to work effectively as part of the JLT International Network.
Contractual agreements with JLT clarify the agreed service standards, compliance is monitored by JLT’s UK-based market security department, while central management and auditing maintain the quality of service and provides built-in resources to resolve issues, quickly and
efficiently.
To our global clients, we are focused on providing them with a choice. There is no set mandate or model. Some clients may not require “full service” and JLT is willing to listen to our clients and provide alternate solutions, often challenging the traditional global insurance model.
Another key differentiator is the Global Service Team (GST), which is the Group’s centre of expertise on international account coordination. GST is the Group’s global resource and can be used as a depository for international insurance compliance and advice for insurance practices and regulations around the world.
This multilingual team is able
to provide clients with a single management point to access and regulate their global programme and help resolve any issues on a daily basis, around the clock in all time zones.
Beyond the choice, service and coverage that the JLT International
Network offers, in these financially challenging times, group finance
directors want to know they are getting competitively priced insurance coverage. Having a global programme that can be undercut in premium terms by local insurers offering similar coverage is a real issue whilst there is excess market capacity in many territories and premiums remain soft.
Given the size of its network and its established history, JLT is well placed to negotiate and structure an effective global insurance programme, serviced by well-policed JLT, partner
and member offices, with experience
to provide local service, and with the leverage to obtain competitive local alternatives where necessary.n
GloBAl
PRoGRAMMES
Flags on maps and global programmes
ENQUIRIES:
Simon Weaver Chief Executive Officer JLT Specialty Asia DID: +65 6411 9580
Email: Simon_Weaver@jltasia.com
