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International Travel Insurance Journal

6 Page 22Page 18 Page 20

ISSUE 43 • AUGUST 2004

ITIJITIJThe latest issue of the WTO World Tourism

Barometer, published by the World TourismOrganisation (WTO) in June, shows that tourism isgetting back on track. By Leonie Bennett

At last some positive news: the majority of countrieswith data available on tourism report a substantialincrease in visitor numbers for the first months of theyear, but this is of course compared to a negative orvery weak baseline for the same period last year. Still, in most cases, the losses of last year are fullycompensated and still a real increase remains. Allregions, but in particular destinations in Asia and thePacific, show a strong rebound in reaction to thedifficulties experienced. Comments WTO Chief of the Market Intelligenceand Promotion Department, Augusto Huéscar:‘Since our team started to compile the WTO WorldTourism Barometer last year, we have seen aconsistent change for the better in conditions in boththe economic and geopolitical basics. Confidencereturned among travellers and the industry, and thetourism sector is heading for a robust rebound in2004. Of course there are uncertainties left, such asthe threat of further terrorist attacks and the highenergy prices, but this hardly seems to be affectingtourism for the moment.’

RESULTS BY REGION:Europe In Northern Europe, the UK ends the perioduntil April with an increase of almost 15 per cent.Germany shows a 10 per cent increase in arrivalsfor the first quarter of 2004, while France‘sovernight stays in hotels and similarestablishments during the first five months grewby 1.4 per cent over last year's decrease of 7 percent in the same period. France confirmed goodresults from the emerging market of China and aslow return of other long-haul markets, in

particular the US and Japan. In spite of the events of11 March, Spain ended the year to date until Maywith a 3.8 per cent increase over the same periodlast year. Countries of Central and Eastern Europe continuewith good results: Hungary and Poland reachedincreases of over 10 per cent. In Southern and East Mediterranean Europe,destinations considerably affected in the first monthsof 2003 due to the pending conflict in Iraq, such asCyprus and Turkey, are back on the growth pathwith increases of 11 per cent and 50 per centrespectively. Italy, with data available limited to thefirst two months, seems to have rebounded strongly(+18 per cent). Portugal on the other hand, thoughwith a positive growth in receipts (+6 per cent),saw overnight stays decrease by 4 per cent.

Asia and the Pacific Exceptional growth rates are found in the North-East and South-East Asian countries, whereas SouthAsia generally continues on the growth track. The strong impact of SARS on destinations in Northand South-East Asia, like China and its territoriesHong Kong and Macao, Japan, Malaysia orSingapore have plainly been overcome. Most

Tourism back on track

Across the country, hundreds of non-profit Americanhospitals who ‘overcharge’ uninsured patients areheading for the federal courts, driven by the samelawyers who spearheaded the multi-billion dollarlitigation against Big Tobacco. Milan Korcok smokesout the story

In announcing legal action against dozens of non-profit hospital systems nationwide, lead attorneyRichard Scruggs of Mississippi said the goal of thesuits was to require all non-profit, tax exempthospitals to honour the pledge of charity care thatgot them their tax exemption in the first place. Ifclass action status is approved by the courts, thesuits will encompass millions of patients and seek torecover billions of dollars for the uninsured, thosewho couldn’t pay their bills or were otherwise

damaged through harassment of collectors,garnishment of wages and bank accounts, seizure ofhomes, personal bankruptcies and the like.Lawyers argue that their tax-exempt status obligatesnon-profit hospitals to provide affordable care tothe uninsured. But according to the suits filed byScruggs and associated legal firms across thecountry, hospitals routinely charge individuals oruninsured patients the highest ‘sticker’ or retailprices while giving insurance companies, HMOs,government Medicare and Medicaid programmes,and managed care organisations huge discounts.All the while, many of the hospitals named in thesuits are laden with large, untaxed assets – someamounting to billions of dollars – that could be usedto alleviate the plight of the uninsured, said Scruggs.

continued on p.5

Insurers and European airlines are heading for acollision this autumn when their contracts coveringwar and terrorism expire. Leonie Bennett reports

According to European Union (EU) officials, insurerswant to exclude certain types of attacks – involvingradioactive material, chemical, biological agents andelectromagnetic pulse devices – from newinsurance polices. Amador Sanchez-Rico, a European Commissiontransport spokesperson has spoken out about thepotential disasters that could arise from excluding

terrorist acts from policies: without full insurance,EU airlines may be forced to ground flights.After 9/11, EU governments had to cover airlines forwar and terrorism risk because insurance companiesdramatically reduced the amount they would pay outif another disaster were to occur. EU officials are keento prevent another such crisis and an option on thetable is to set a limit on payouts by insurers for thesetypes of terrorist attacks: EU governments wouldmake up any shortfall by stepping in as an insurer oflast resort. Whatever they decide, it will have to bedecided quickly – autumn is only a few months away.

Who is to pay for terrorism?

Billion dollar suit for US hospitals

continued on p.28

The running of the bulls at the annual Pamplonafestival in Spain left its usual legacy of injuries in July.A casualty count began mounting early as 28runners were taken to hospital during the first fourdays of the seven-day event. Tourists flock to watchand participate in the spectacular action wherehundreds of people can run along with 12 chargingbulls in one of the most chaotic and dangerousfestivals around. The most serious incident was onthe sixth day when eight people were gored nearthe end of the run when the street bottled neckedinto the entrance of a building and several peoplefell over in front of the charging bulls.The traditional 930-yard route from corral tobullring takes place through thin (often winesoaked from night before) slippery streets andinjuries are expected as a matter of course.Since 1924 records of bull-running accidents havebeen kept and since that time 14 people havebeen killed at the festival, the last fatal goring beinga 22-year-old American, who was killed during theevent in 1995.

Outrun and overcharged

British travellers sufferingwith potentially fatal DeepVein Thrombosis (DVT)have earned the chance tofight in the UK’s highestcourt, the House of Lords,which could cost carriersmillions. According tolawyers involved in thecase, on 16 July, law lords gave the green light foreight people to sue British Airways Plc and ChinaAirlines, in the House of Lords.If the decision goes in favour of the claimants thenthis may pave the way for other such cases aroundthe world and could have far-reachingrepercussions. Courts around the world are likelyto use the English decision as a guide.The airlines say (and lower English courts agree)that DVT cannot be called an accident, according tothe terms in the 1929 Warsaw Conventiongoverning air travel. In the past, victims of the condition were barredfrom suing airlines by a British court, and SeanGates, a lawyer for the airlines says, ‘We welcomethe opportunity to demonstrate that the airlines'position in this matter is correct.’Ruth Christoffersen is one of the campaigners,driven on by the death of her daughter, Emma,aged 28, who died of DVT soon after flying fromAustralia. She said of the legal fight, ‘We obviouslylook forward to the decision and hope it goes ourway, but if it doesn't go our way, we will still goahead with our awareness campaign to let thepublic know there is a risk out there.’The hearing is expected either at the end of theyear or some time in the spring of 2005.

DVT casecould costmillions

WHAT’S INTHIS ISSUE?

REGULARS

News 1Insurance matters 6Grapevine 9Company brief 10Editorial comment 11Travel matters 12Health matters 14News analysis: Taking cover 16World markets: Slovenia 22Profile 26Dick’s hotline 28Hot spots 30Service directory 31Diary dates 38On the move 38Smile corner 39

FEATURES

Successful outsourcing 18A practical guide to making outsourcing work

Bags of trouble 20Lost luggage: an increasing problem

ITIJ TEAMEditor-in-chief: Ian CameronManaging editor: Richard Forsyth

Deputy-editor: Sarah Lee

Editorial assistant: Leonie Bennett

Designer: Eli Butler

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: Vernon Harman

Finance: Pauline LloydHelen Parker

Cartoonist: Chris Duggan

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ITIJITIJInternational Travel Insurance Journal

NEWS2

International Travel Insurance Journal www.itij.co.uk

A new survey undertaken by GFK Ad Hoc ResearchWorldwide on behalf of The Wall Street JournalEurope, uncovered how Europeans liked to spendtheir time on holiday. The results were an insight intothe European psyche when it comes to taking timeout. In all 20,318 randomly selected people (over theage of 15) in 20 countries were interviewed betweenApril and May of this year. It is the mostcomprehensive survey of its kind in 2004 onEuropean tourist behaviour.The US has been factored into some of the results,using data taken from a similar American based survey.

Here are some telling statistics from the survey:

How does each country spend time onvacation?

Respondents were asked to pick three answers from a list of 13.

What type of holiday best appealed to eachcountry?

Russians: Countryside Greeks: SeasideDanes: CitiesFrench: Cruise ShipsSwedes: Touring

What do men and women do on holiday?

Shopping: Women 20 % Men 9%Clubbing: Women 6% Men 11%Reading: Women 19% Men 10%

Which European Countries do Americansprefer to visit?

In a similar survey also conducted on behalf of TheWall Street Journal Americans preferred the followingcountries to visit in Europe.

1. UK, Ireland 14%2. Italy 13%3. France 11%4. Germany 9%5. Spain 5%

Europeans’ travelhabits

SURVEY

On 18 July, the largest mock terror attack exercise everheld in the UK illustrated how unprepared the countryis for a real assault. The reconstruction of a terror attackaftermath, called ‘Exercise Horizon’, was to test theresponse time of all the emergency services needed totreat multiple casualties after a chemical attack, and 400volunteers stepped up to play the victims atBirmingham’s National Exhibition Centre. ‘In this case, we are rehearsing a scenario around achemical attack,’ commented Detective ChiefConstable Chris Sims from West Midlands Police.‘There are over 2,000 people involved. It reallydoes test the whole system and everyone in it.’The simulated response to a nerve gas attackshowed up emergency services as unable to process

all the people involved in the timeframe required,however, as treating all the victims simply took toolong. The exercise began at 9.30 in the morning, butmany were not treated until after midday. Someacting patients became tired of waiting and tried toescape, but were stopped by police on theperimeter. The event was highly publicised and waseven followed by Arabic TV station Al-Jazeera.It took 90 minutes before any of the victims weredecontaminated. When the treatment began, theywere forced to strip and wear bright orange capesbefore being decontaminated in a special unit set upfor the task.A probe is now looking into the reasons for thedelays and to improve procedure.

Mock terror, real problems


NEWS4

According to an annual survey that rates citiesaround the world by how expensive they are tolive in, Tokyo is at the top of the pile and Londoncomes in at a close second. The survey, by MercerHuman Resources, rates the cost of living forforeign workers by comparing the price of 200items in 144 cities around the world, with criteriaincluding housing, food, transport andentertainment.Tokyo, in the number one position, is three timesmore expensive than the lowest-ranked city,Asuncion, in Paraguay.Marie-Laurence Sepede of Mercer said that someof the cheapest cities were in countries that joinedthe EU this year: ‘We are likely to see cities in thenew EU accession countries rise in the rankings asmore investment is made in commercialdevelopments and standards of living increase.’ Lets just hope people remember to pack goodinsurance when visiting the UK and Japan – if youlose something it might cost you a lot to replace!

Show me the money!According to a preliminary investigation, poorconcrete is to blame for the collapse of thepassenger terminal at Paris Charles de Gaulle airportin May, which saw five people killed (See ITIJ 41Fatal roof collapse at Paris airport).So far, the investigating team have found that thegradual weakening of concrete foundations, inwhich the metal struts supporting the roof wereheld, were the cause. The report does not saywhether bad design or shoddy workmanship had apart to play and until a conclusion is drawn, theterminal cannot be demolished.If bad design is found to be the underlying cause,the terminal’s entire departure lounge will be takendown and the terminal will be closed for at leasttwo years whilst structural repairs are carried out.

Terminal concrete

With only a few weeks to go until the OlympicGames, Greece is steeping up security by sending inmore than 10,000 police to protect sports venues,transport centres and hotels around Athens.Delays in construction mean that the main stadiumwill not be sealed until days before the start of theGames, but despite worries on this score, theGreeks are ensuring they get the security right.‘For us, the Olympics start today… not only for thepolice, but for all army and coastguard personnelinvolved in the operation,’ said Public OrderMinister, Giorgos Voulgarakis.According to sources, around 4,000 police officershave been gathered from the outskirts of the capitalto help with the smooth running of the Olympics.

Olympic security

India’s proposedinsurance reformsthwarted The newly-elected government of India haspresented its budget for the year to March 2005, inwhich the cap on foreign investment in insurancecompanies has been proposed to be raised fromthe present 26 per cent to 49 per cent. This hasbeen a longstanding demand by the industry, but itis unlikely that the proposal will become law dueto resistance from the communists inparliament. Saby Ganguly reports

The budget, presented on 8 July, camenearly two months after the newgovernment – led by the Indian NationalCongress (incidentally, the world’s oldestsurviving political party) – was formed,ousting the Indian People’s Party (BJP).However, the Congress was unable to winan outright majority in parliament, whichforced it to seek ‘outside support’ fromother parties, including the CommunistParty of India, Marxist (CPM), to form acoalition government. The CPM has lentcrucial support for the survival of thegovernment, but has maintained itsindependence in policy matters.Most of the world’s insurance majors areactive in India through joint ventures withIndian companies, most of which have noexperience of the insurance business. ‘It isthe foreign investors whose expertise hasenabled the changeover of Indian insurancefrom a docile government-owned sector to a vibrantand competitive sector that is giving the Indian citizena far bigger choice than ever before,’ Swapan De, asenior executive with a joint-venture insurancebrokerage, told ITIJ. ‘Yet, they have only beenallowed a 26 per cent stake in the companies, whowouldn’t have been able to do business withoutthem. This is ridiculous.’ De added that ‘a 49 per cent cap is perfectly fairbecause it still retains majority holding in local hands.’De’s refrain is representative of the foreigncomponent in India’s insurance sector. The presentgovernment’s budget proposal has, therefore, beenwelcomed by them, but their joy is most likely to beshort-lived.The CPM lost no time in declaring that it will fight‘tooth and nail’ the further opening up of the‘sensitive’ insurance sector during an ensuingparliamentary debate on the budget. The Congress-led ruling coalition is also unlikely to alienate thecommunists who could pull down the governmentsimply by withdrawing their ‘outside support’. Finance minister, P.C. Chidambaram, has alreadyhinted that he would roll back the proposal. ‘I amprepared to discuss the issue with our outsidesupporters. I will try to convince them or I will beprepared to be convinced by them,’ he said in ameeting in the capital New Delhi.

Sainsbury’s Bank travel insurance in the UK haswarned that this year, up to 1.7 million people willsuffer from a disaster whilst on holiday abroad.Furthermore, it estimates of those who make aclaim on their travel insurance, only around 35 percent will have their losses settled in full. The bank’s findings show that the most frequentdisaster people suffer from whilst on holiday abroadis falling ill. This year, they predict up to 776,000Britons will require medical treatment whilst onholiday abroad. This is followed by 440,000 who

will lose their luggage and just over 400,000 whowill have to cancel their vacations or cut them shortas a result of unforeseen circumstances. Worryingly,around 113,000 people are likely to suffer fromphysical assault whilst on holiday abroad this year.

Number of people who will suffer from thefollowing whilst on holiday abroad this year:

Need medical treatment 766,600Lose luggage 442,200Cancel or cut your holiday short due to unforeseen circumstances 404,000Missed departure 266,400Money stolen 212,600Lose money 202,800Be physically assaulted 113,400Lose passport 62,400Have passport stolen 19,200

Michael Liddell, Travel Insurance Manager atSainsbury’s Bank, said: ‘If disaster does strike whilst onholiday, the situation can be made far worse when yourealise that your travel insurance policy offers poorcover and your claim is turned down. It’s worthspending some time shopping around before youbook your holiday, as you don’t necessarily have to payextra for a more comprehensive range of benefits.’

Accidents do happen!A 100-year-old classic Norwegian sailing shipcarrying 21 sea scouts sank to the bottom of theEnglish Channel during the night on 16 July afterbeing rammed by a Dutch fishing boat. The incidentoccurred just off the Dutch coast and onlookers saidthat it almost looked like the fishing boat was aimingfor the old ship, which was on its way from Ijmuidento Calais, as it struck near the port of Vlissingen.The crew of scouts consisted of teenagers agedbetween 13-16. It took just three minutes beforethe ship vanished under the surface and the scoutshad to react quickly to escape. The first to abandonship managed to get into lifeboats, but others hadto jump into the sea before being picked up bytheir shipmates in the lifeboats. The lost ship,Mowhawk II, will be salvaged and the crew of thefishing boat were held by authorities to test foralcohol levels.Trond-Marius Melsom from the group that arranged

the trip, Oslo KFUMSjøkorps, informednews bureau NTBthat the Mohawk II‘was hit on its port(left) side by a Dutchfishing boat’ just aftermidnight.‘It was dramatic,’Melson said, ‘butthey're (the crew) allin good shape.’If nothing else,insurers should takenote that good trainingfor emergencies ispriceless and theteenagers, despite their young age, acted withspeed, courage and without hesitation.

Norse ship scouts escape

www.itij.co.uk International Travel Insurance Journal

NEWS 5

Hong Kong shut down dueto severe storm warnings onFriday 16 July. Thegovernment issued its thirdhighest weather warningever and millions of peoplerushed home in fear of thestorm’s power as it arrived atthe northeast of Hong Kong.Heavy rains and ferociouswinds closed in on the city,but the power of the storm,named Kompasu, lost some of its strength by the time itdescended on Hong Kong, with wind speeds of 63km/h (39 m/h). Luckily, no-one was reported hurt andflooding and damage were not a problem.When the alarm was raised, shops, businesses,schools, financial markets and even governmentdepartments were all closed down in response. Hong Kong sees around six storms passing near byyear on year, but they very rarely head inland, sothis was a rare occurrence and a frightening one forthe city’s people, not to mention watchfulinsurance companies.

Storm shuts HongKong

A study by researchers from the Insurance Institutefor Highway Safety in the US has uncovered thatthe most traffic accident fatalities occur on 4 July,and the second worst day is 3 July. The researchersscrutinised data taken from the federal FatalityAnalysis Reporting System, an annual census of fatalcrashes on US roads, and the analysis covered aperiod from 1986-2002.They also gathered information on thecharacteristics of the people and vehicles involvedin the fatal crashes. Perhaps unsurprisingly, six of theten worst days for motoring-related deaths were inor near holiday periods, including 23 December,New Year’s Day and 2 September.Increased traffic, combined with celebrations(alcohol consumption) simply equates to moredeaths. It’s fair to say, though, that not everyone willhave something to celebrate on Independence Day.The institute's chief scientist, Allan Williams, says:‘While more deaths do occur on some of theholidays, the toll of fatalities is relentless every day,all year long… An average of 117 deaths per day isthe equivalent of a major commercial airline disasteroccurring every day of the 6,209 consecutive daysof the 17-year span we analyzed. But there's a bigdifference in how society approaches these losses.When a plane goes down, it's big news and there'sa concentrated effort to find ways to prevent futurecrashes. But the toll of highway deaths doesn'tattract the same attention.’

Accidents peak on 4July

DAYS WITH THE MOST CRASH DEATHS,1986-2002

Total deaths Avg. per dayJuly 4 161July 3 149December 23 145August 3 142January 1 142August 6 140August 4 139August 12 139July 2 138September 2 137

ALL DAYS 117

Deaths by type of crash:• About three of every four crash deaths

are occupants of passenger vehicles • 13 per cent are pedestrians• 7 per cent are motorcyclists• A staggering 51 per cent on 1 January

involved high blood alcohol. Generallyspeaking alcohol is responsible for a largeproportion of the crash deaths on publicholidays.

In Wales in the UK, the Wales Trekking and RidingAssociation (WTRA) has said that 10 of its ridingschool members have had to close in recent yearsas they can not afford insurance bills. In three years, insurance bills have risen nearly 400per cent from £800 to £3000 and a further rise isexpected. Compensation claims have increased in a‘blame culture’ atmosphere more akin to the USthan the UK – causing higher premiums issued bycautious Insurance companies.Pony trekking is a great and traditional excursion forvisitors to Wales and the general rise in claims maybe an indicator of a new trend that may damage therange of activities available to people wanting tospend time doing something a little different.Susie Tucker of the Pilton Moor stables in Walesmay have to close in the autumn and has said tothe press: ‘… the insurance companies put up theirprices like that and take it (their business) awayfrom us – we are shattered.’The Wales Tourist Board is approaching insurersabout the problem, which appears to be escalating.Geoff Haden from Tourism Swansea, warned thetourist board, ‘The WTB are spending a vast amountof money promoting Wales as the activity centre ofBritain, but there will be no-one here doing activitiesbecause no-one is there to provide them.’The only way around the problem will be to redirect theinsurance back to the individual. Otherwise, it seems,Wales will have one less attraction to draw visitors.

Turning on a hoof

The first wave of court filings swept through Illinois,Minnesota, Ohio, Texas, Georgia, Alabama, Florida,Tennessee, Arizona and targeted some of thenation’s largest and most prominent non-profithospital systems: Advocate Health Care Networkand Provena Health in Chicago; Fairview HealthSystem and Alina Health System in Minnesota;Baptist Health Systems in Florida; Banner Health,Arizona’s largest health care provider; Baylor HealthCare system, Dallas; BJCHealthcare, St Louis; Catholic HealthInitiatives, Denver; ResurrectionHealth Care, Chicago; and plentymore to come.The suit against Chicago-basedProvena, for example, claims thatwhile the hospital company givesprivate insurers and government thirdparty payers large discounts off thesticker price, ‘uninsured patients arecharged 100 per cent of the full stickerprice, which is two to three timesmore than Provena charges its insuredpatients for the same service.’Another example reflecting themagnitude of discounts given bulkbuyers vis a vis the uninsured was published in areport in the Minneapolis Star Tribune which notedthat in 2002, 16 hospitals in the Minneapolis/St Paularea billed managed care plans a total of $3.4 billionfor inpatient care, but collected only $1.5 billion forthose services – reflecting a 55 per cent discount.‘Only the uninsured, those who should be receivingcharity care, pay the hospitals’highly-inflated rates that bear no connection to the

actual cost ofproviding theservice,’ saidScruggs.The AmericanHospitalAssociation(AHA), whichrepresents some5,000 hospitals,claimed the suitswere ‘baselessand misdirected’.A spokespersonfor the AHA said

defending against the suits ‘will consume already limitedhealthcare resources that hospitals need to continuetheir daily work of caring for the uninsured and all otherpatients in their communities.’ Testifying to a Senate Committee investigating hospitalpricing, David Bernd, AHA Chairman, said that UShospitals currently absorb about $22 billion inuncompensated care for patients who can’t pay for thecare they need. ‘But more is required to meet thehealthcare needs of the uninsured, and Americanhospitals cannot solve the problem on their own.’ Thelegal actions against hospitals coincide with intensifying

media and political scrutiny of hospital fees and chargingpractices. In June, a US House of RepresentativesEnergy and Commerce Committee heard testimonyabout hospital billing practices resulting in someuninsured patients losing their cars and homes.State attorneys and regulators across the countryhave been scrutinizing such practices and, in somestates, have revoked the non-profit status ofhospitals they claim have not been providing

enough charitable care and, in effect, have beenabusing their tax exempt status. Recently,Connecticut Attorney General Richard Blumenthalsued Yale-New Haven hospital for not providingenough charitable care. And similar actions arepending in New York State.The suit against Provena Health in Chicago says that‘While it (Provena) promises to provide affordablecare to the uninsured poor, Provena has andcontinues to engage in a practice and pattern ofcharging inordinate, unreasonable and inflated pricesfor medical care to its uninsured patients.’Some hospital executives have, until recently, claimedthat confusing federal regulations had required them tobill all patients using the same schedule of charges, ineffect precluding their ability to discount prices or offerfree treatment. Some have also been motivated byMedicare rules that state they will be reimbursed for ashare of their uncollected debt if they make ‘reasonableefforts’ to collect. To this, Health and Human ServicesSecretary Tommy Thompson has said: ‘To be sure thatthere will be no further confusion on this matter…(Medicare and Medicaid)…guidance shows thathospitals can provide discounts to uninsured andunderinsured patients who cannot afford their hospitalbills and to Medicare beneficiaries who cannot affordtheir cost-sharing obligations. Nothing in Medicareprogramme rules or regulations prohibits suchdiscounts.’In response to the growing groundswell againstsuch differential billing practices, the AHA initiated aprogramme inviting its member hospitals to pledgethat they will treat all patients equally, regardless oftheir ability to pay. To date, about 2,300 of theassociations 5,000 member institutions have signed.

Billion dollar suit for US hospitalscontinued from p.1

Reducing claimshandling costsprimary goal

Seventy-eight per cent of US P&C insurancecompanies identify cost reduction in claims-handling processes as their most important goalfor 2004, according to a recent poll conducted bythe Insurance Services Office. Ronn Mullins breaksdown the results

Key areas identified by the companies surveyed arereducing costs (42 per cent), improving claims-handling efficiency (25 per cent) and reducing fraud(10 per cent). More than half of insurers saidincreased knowledge and staff training are the mostimportant areas for improvement.Vice President of Claims Servicesat ISO, Lee Fogle, said, ‘Reducingclaims-handling costs by settling aclaim fairly and equitably – and asquickly as possible – is ineveryone's interest. Ourcustomers tell us empoweringclaims handlers with moreinformation about similar claimsand injuries is one of the mostimportant areas for combating therising costs of personal injuryclaims.’One solution offered to reduceclaims costs is the ISO ClaimsOutcome Advisor. This systemgives adjusters greaterunderstanding and access tomedical information and enablesthem to handle claims moreefficiently and fairly.

EC gives Greece itsfinal warning

Greece has been threatened with legal action bythe European Commission (EC) for notimplementing a European Union (EU) directive onthe re-organisation of insurers. The directive places direct insurance policyholdersat the front of any creditor queue, whereas underthe old system, separate insolvency proceedingscould be carried out in each EU country in whichthe insolvent insurer operated. Greece has alreadybeen given two months’ grace to explain itsreasons for not implementing the directive, andnow has a further two months in which to set outhow it plans to reform its insurance solvencysystem or else face the threat of court action andhuge fines.

A return to strengthfor EuropeanreinsurersAM Best, the rating service, has reported thatEurope’s reinsurers have seen their financial strengthstabilise after a downward period lasting two years.But, they report that a return to the higher ratings ofrecent years seems unlikely.Strong accident year results were maintainedthrough the first quarter of 2004 and are expectedto carry on through the year. Combined with apartial restoration of capital levels, AM Best believesthis has helped support the current ratings. Capitalhas partially recovered due to both equity raising andsome recovery in the capital markets. According to AM Best, however, a return toprevious years is hindered by the following factors:

* Capital is now being more actively managed tobalance financial strength with return on capitalemployed. The extremely higher levels of capitaladequacy seen in some cases historically are unlikelyto be a management goal going forward. * For those with historical exposure to US casualtybusiness, the risk of further adverse development onUS exposures remains, which could lead again to astrong 2004 accident year result being significantlypulled back by these prior year losses. Adversedevelopment is most commonly recognised in thethird or fourth quarters.* Some non-US liability markets have also shownsubstantial adverse development in recent years(e.g., employers liability & professional indemnity inthe UK, medical malpractice in France). The potentialfor a more litigious environment in Europe, drivinggreater liability losses in future cannot be ignored.More positively, there are signs that reinsurers aretaking steps to anticipate problems in ContinentalEuropean liability lines before they reach truly seriousproportions.* While reinsurance recoverables are generally beingmanaged down, debt leverage continues to grow.For some reinsurers, an increased presence in thelife markets has also increased the amount ofrecognition of expected future profits from their lifebusiness in their current balance sheets. Accordingly,the overall quality of capital in the industry remainslower than the historical levels. That is, capitalreflects greater amounts of debt and non-liquidinvestments than previously.* While the current accident year results appear verygood, with this expected to continue through 2004,the absolute levels of underwriting profitability arenot as strong as might be hoped for at this stage. * Reduced volume (i.e., reduced risk, not just theinevitable drop in premium income) in a softermarket is the publicly stated intention of most marketparticipants. But, the pressure to make profitable useof equity capital will pressure reinsurers to returncapital to shareholders in line with reduced expectedprofitability. For those carrying any material degree ofcasualty/liability reserves into the soft market, thiswould put pressure on risk-adjusted capital adequacyas both reserve risk and asset risk will always fallmore slowly than premium risk.

BE Insurance Group Ltd is pleased to advisethat the previously announced acquisitionsof ING's 50 per cent interest in the QBE

Mercantile Mutual Australian joint venture andZurich's general insurance business in Singaporeare now complete.

K insurance group Aviva has sold its YourMove property agency and its e.serv surveyingbusinesses to Lending Solutions, a newly

formed unit of Barclays Private Equity, for £42 million.

itygroup has reported second-quarter losses.Profit fell 73 per cent to a near six-year lowafter setting aside almost $5 billion for legal

costs related to its role in scandals, includingWorldCom and Enron, the world’s biggestbankruptcies. Net income fell to $1.14 billion.

wiss Re has been granted a reinsurancebranch licence from the Taiwan Ministry ofFinance. The branch, located in Taipei, will

provide reinsurance services to clients throughoutTaiwan in the property and casualty as well as lifeand health sectors.

he UK’s Association of Insurance & RiskManagers (AIRMIC) has welcomed anindication from local regulator, the Financial

Services Authority, that most group risk managers willnot be regulated as insurance intermediaries fromJanuary 2005, when a European Union directive oninsurance mediation comes into force in the UK.

oscow Re has received a capital investment ofRUB 548.9 million from Russian oligarchKakha Bendukidze, which has increased the

company’s paid-up capital five-fold. The underwritersnow plan to expand and take advantage ofopportunities in the Russian Federation, elsewhere inthe Commonwealth of Independent States, in CentralEurope, the Middle East and around the world.

umours abound that ING is to sell itsDenver-based US life reassurance businessfor up to $1 billion, but ING of the

Netherlands is keeping hush. Interested buyers aresaid to include MetLife’s Reinsurance Group ofAmerica unit, Swiss Re, Munich Re and BerkshireHathaway’s General Re unit.

he Dubai Financial Services Authority (DFSA)is celebrating after being accepted as a fullmember of the International Association of

Insurance Supervisors (IAIS).

L Insurance Company (XLICL) has gainedpermission from KNUiFE, the Polish Insurancesupervisory body, to carry out insurance

activities in Poland. The Polish branch, located inWarsaw, will offer coverage and services to thePolish operations of multinational clients. It will beled by XLICL Country Manager, Mariusz Ejsmont.

he UK’s Financial Services Authority haspublished rules for its new risk-based capitalregime for insurance companies. The

requirements, which will be finalised by the closeof 2004, are applicable to general insurers,reinsurers and life insurers with profits funds. Theywill be designed to ensure that the capital held byinsurance firms is more closely aligned to the risksof the business that they write.

ce has become one of the first UK marketinsurers to receive regulatory approval tounderwrite business on a ‘freedom of

services’ basis in the 10 new European accessionstates. The company is now authorised tounderwrite all 18 classes of business from its UKoffices and issue policies and service claims in the10 new EU countries.

ike Henry Travel Insurance (MHTI) hassold half of its shares to IAG New ZealandLimited (IAG NZ), who holds a Standard &

Poor’s credit rating of AA. It will be business asusual with no change in the management of thecompany. The Mike Henry brand will be retainedand a new board of directors will be formed. Itwill include Mike Henry and Steve Nichols, withtwo representatives from IAG NZ.

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Editorial commentIndonesia’s assetsPT Asuransi Allianz Utama Indonesia has won theaccolade of Best General Insurer 2004 for its assetcategory in an independent analysis by InvestorMagazine. Sister company PT Asuransi Allianz LifeIndonesia was named second best life insurer in thesame contest, in the same category.In Investor Magazine’s Insurance Rating 2004 report, allIndonesian insurance companies were assessed based ontheir performance in 2003, according to 13 criteria. Thesecriteria included level of risk-based capital, net premiumgrowth, claims reserve, investment income, growth ofunderwriting result and return on equity.Allianz Utama CEO, Klaus Voeste, said the company wasvery honoured to receive the award: ‘The results reflectAllianz Utama’s stronger local business performance in2003, and the company’s commitment and dedication toachieve sustainable and profitable growth.’

Arig showspromising resultsArab Insurance Group (Arig) has posted strongresults for the first half of 2004 and has stated that itpans to increase its capital further through a rightsissue. After reporting a net profit of $7.6 million for2003, the group has now registered $12.2 millionfor the first six months of 2004. Underwriting profitsare also up to $5.8 million for the first half of thisyear, compared to $2.4 million for the same periodlast year.Arig is also offering 50 million new ordinary shares toits existing shareholders for subscription on a rightsbabsis. The shares will be offered at a price of $1per share, which represents a discount on thecurrent book value. The offering will be open forsubscription from 12 September until 27 Septemberat a maximum allowance of one rights share forevery three ordinary shares held.Udo Krueger, Chief Executive of Arig, said: ‘Theissue is being made in order to support expansionand diversification strategies, namely in the area ofLife Reinsurance, Medical Reinsurance and IslamicReinsurance. The additional capital will furtherstrengthen Arig’s competitiveness and its transitionfrom a regional market follower to a serious marketleader in the MENA region.’ He added, ‘Theoverwhelming support and encouragement we havereceived from our clients during the past couple ofyears quite obviously underlines the need for astrong regional reinsurance company.’

Terrorism takes aback seat

Major reinsurers and insurance carriers in the USand Canada have become more concerned aboutpricing and less about terrorism over the past yearaccording to the Industry Outlook 2004 survey justreleased by National Marketing Services, Inc. MilanKorcok has the details

The survey, based on interviews with 125 insuranceexecutives throughout North America, also showsthat though their confidence in President Bush hasslipped somewhat since 2003 (from 78 per cent to63 per cent) their mistrust of Democratic presidentialcandidate John Kerry – whom most see as a foe ofthe industry – rides at a high 82 per cent. The annualsurvey, conducted by telephone between 1March and 7 May 2004, is designed to identifyemerging trends and gauge the most importantissues facing the insurance industry. In addition to concern about rising prices,which they rated at the top of their worry list– a position previously occupied by terrorism– executives surveyed believe that maintaininggrowth and keeping premium prices in checkis going to provide a continuing challenge.Most executives said they were determinedto maintain pricing discipline throughout asoftening market and most saw interest ratesas having an important impact on whether themarket softens of hardens. Surveyrespondents said they expect lower premiumincreases across the board in 2004,particularly in property and casualty, wheresome expect a decline in rates. As in 2003, thelargest increases are expected in liability.The survey showed 72 per cent of insurers feltincreasingly confident in the future of the industry,the highest confidence level in the three-yearhistory of the survey. They also felt moreconfidence in their ability to write new lines ofbusiness, and in the strength of the stock market tosustain and increase growth. Confidence amongreinsurers was also at a two-year high.In terms of national leadership, the surveyedexecutives still strongly backed President Bush,considering him a ‘friend’ of the insurance industry,although their confidence in him has slipped from a78 per cent rating in 2002 to a 63 per cent in 2004. As for Senator John Kerry, Democratic candidatefor the presidency, he remains largely untrusted bythe insurance industry, 82 per cent describing himas an ‘enemy’.The survey revealed that the issue of terrorismcontinues to evoke ambivalence among insuranceexecutives. Though their confidence in the futuresecurity of the US remains unchanged from 2003,confidence that the US can contain global terrorhas decreased slightly. Most also believe the newterrorism laws have had no real impact on theinsurance industry, their companies or investorconfidence. In fact, 44 per cent said the federalgovernment needs to do more to fight terrorism.The surveyed executives appeared particularlyconcerned about public and media perceptions oftheir industry. Their responses showed that while 40per cent believe that individuals view their agentpositively, only 13 per cent believe the public viewsthe insurance industry as a whole positively. And someplaced the blame for this negative perception on whatthey see as a generally hostile media. Infact, 82 per cent see the media as a ‘foe’of the industry, up dramatically from 47per cent in 2003. News coverage ofissues such as mold and asbestos werewidely cited as examples of media hostility.According to Larry Neilson, NationalMarketing Services (NMS) President:‘Knowing the thoughts of industryleaders will help readers to betterinterpret market trends to makeinformed decisions about their ownmarketing picture.’ NMS is atelemarketing and research firmspecializing in commercial and personalinsurance telemarketing and databasemanagement.


INSURANCEMATTERS 7

The chairman of the Indonesian Insurance Council, Hotbonar Sinaga (right), presents theaward to Klaus Voeste, CEO of Allianz Utama

I recently purchased travel insurance for aholiday and allowed myself a moment toconsider the peace of mind I was exchangingmoney for. Buying insurance is placing a betagainst yourself to ensure you never reallylose, but I realised that’s a wager worth itsweight in paranoia if it meant travelling free ofstress and free of being thrown to the wolveson foreign soil.In the airport before my holiday began, Iconsidered the act of faith that I wasundertaking watching my travel bag trundleoff on a conveyer to be swallowed into thatdark unknown beyond the check-in desk. Itwas only then that I remembered damningstatistics I had heard about luggage flying offto other countries. Low and behold, on myreturn to the UK, I noticed all the unclaimedsuitcases dejected at the lost luggage counter,no doubt packed with people’s clothes andholiday essentials.It was at the check-in desk on my outwardjourney that potential claims suddenlybecame visible all around. I recall lookingacross the way to spy a heavily-brandedsnowboard bag, swung over the shoulder ofa teenager heading off for a deadly glaciersomewhere, with a relatively high chance ofbreaking his leg in three places and fracturinghis pelvis. At the same time, a screamingchild looked abandoned and lost in the

middle of the floor and I considered theparents lucky their child wasn’t a bag or itwould be removed by security or blown up. Wide-eyed holiday-makers clutched theirtickets and passports with a tangible anxiety asthey wondered where they were going toend up and whether their expectationswould be hopelessly let down. It seemedinevitable in the busy terminal at Gatwickairport there was undoubtedly someoneamongst the horde who would be making aclaim on their return.As a couple next to me argued to wearyfaced check-in staff about the amount ofhand luggage they were allowed on to theplane, whilst wrestling two kitchen-sink sizedrucksacks, it occurred to me that insurance issuch a small detail in the travel experiencefor such a high sense of relief. Insurance isthe shield against all your worst demons anddarkest travel nightmares and every travellershould be thankful for it, as I know I was andif I consider it making a bet against myself,then I’m glad on my safe return, that I didn’tcash it in.

Richard ForsythManaging Editor

Conventions spark terror insurance boomIn New York and Boston, insurance brokers haveseen a dramatic rise in terror insurance policies forproperty owners prior to the summer's Democraticand Republican national conventions.Boston hosts the Democratic convention and NewYork is the venue for the Republican convention.Properties such as banks, hotels and officessurrounding the sites of the conventions havesigned up for the coverage.The insurance is seeing something of a business

boom in other parts of the US also, partly due to thefederal government’s financial backing of thesepolicies. The insurance increases premiums from aslittle as two per cent to as much as 20 per cent inthe cities. Before 11 September, terrorism cover wasnever an issue, but now, in Manhattan especially,terrorism insurance has become the norm and is stillon the increase.

Groupama agreesprinciples of risk transferGroupama Insurances has confirmed that it intendsto offer to accept the risk transfer of premiums aspart of a revised terms of business agreement. Thecompany has been keen to clarify its position onwhat it sees as a significant issue for its tradingpartners.Amanda Blanc, Distribution and Customer ServiceDirector at Groupama, said: ‘The fact is that theconcept of ‘risk transfer’ of premiums simply reflectsmarket practice. However, historically, insurershave not been clear about it and understandablythis has been a cause of concern for intermediaries.From our point of view, we want our businesspartners to have the necessary reassurance and weare writing to them to inform them of ourdecision.’Groupama confirmed that it intends to take fullaccount of theresults of theongoing process ofmarket consultationwith the FSA on‘co-mingling’ indetermining thedetail of any revisedterms of business,however.Amanda Blanc wenton to say: ‘We thinkthat the ongoingprocess ofconsultation will bevery valuable insorting out the detail and will help to ensure thatthe needs of insurers, the broking community andtheir clients are reflected fully in the outcome. ‘Once the position is clear, we will be in a positionto finalise our terms of trade so that there is clarity.In the meantime, we want to remove anyconfusion for supporting intermediaries so that theyknow exactly where they stand in their dealingswith Groupama.’

ccording to a survey by the CharteredManagement Institute and Adecco, managersin insurance are overworked, put business

ahead of family, and work within a negative culture.

ing An Insurance experienced a flat debut inJune. Analysts say Ping An was less attractivethan its rivals because its valuation was higher

and investors have become more careful towardsChinese initial public offerings.

K-based assurer Britannic has opened talkswith Germany’s Allianz to purchase thegroup’s UK life assurance unit Cornhill Life

for an estimated £150 million the Sunday Timeshas reported. According to the paper, negotiationsare still at an early stage and may take up to twomonths to complete. None of the firms cited inthe article have made any comment.

EB has boosted its presence in Denmark byannouncing it will pay Skr 3.3 billion for thelife assurance and pension operations of

Codon, the insurance group controlled by theRoyal & Sun Alliance of the UK.

t looks like Carlyle Group has agreed topurchase a stake of up to 25 per cent in ChinaPacific Life Insurance, the country’s third-largest

insurer, for up to $400 million. They hope thedeal will be sealed soon, once Chinese regulatorshave approved it.

tandard & Poor’s Rating Services hasannounced that it has assigned its BBB long-term counterparty credit and insurer financial

strength ratings to Bahrain-based reinsurer ArabInsurance Group (ARIG), with a stable outlook.

oyal & SunAlliance has announced the sale ofthe business of its Pakistan operation toInternational General Insurance Co. of

Pakistan Ltd. The consideration will beapproximately £700,000 (US$ 1.25 million), to bepaid in cash. R&SA will also retain net assets ofaround £3.4 million.

ating Agency AM Best has downgraded thefinancial strength of UK-based InternationalInsurance Co. of Hannover, a subsidiary of

German reinsurer Hannover Re, to single A minusfrom single A, with a stable outlook. It said thatpremium development had been below theagency’s original expectations. However, it saidthat this could be offset by the addition of newagents in the latter part of 2004 and 2005.

anco Comercial Portugues (BCP), Portugal'sbiggest listed bank, has agreed to sell half its lifeand health insurance business to Fortis, Belgium's

largest financial group, for €500 million. BCP will alsosell its non-life insurance business to state-ownedCaixa Geral de Depositos, for €343 million.

ondial Assistance is relieved to reveal salesgrowth of a positive three per cent in 2003.Insurance and travel assistance were found

to be particularly strong in the UK and France.

on Corporation has declared a quarterlycash dividend of $0.15 per common share.The cash dividend is payable on 16 August

to common stockholders of record at the close ofbusiness on 3 August.

oyal & Sun Alliance is currently discussingplans to sell its closed UK life insuranceoperations. According to reports, the insurer

has been offered £900 million by Resolution LifeGroup, but R&SA say the amounts are highlyexaggerated. Indeed, many believe the business isonly worth £600 million.

annover Re has begun conducting duediligence on US-based reinsurance unit INGLife Re, a subsidiary of Dutch insurance group

ING, the Financial Times Deutschland reports.According to the paper, Munich Re and Missouri-based Reinsurance Group of America are also stillinterested in the unit, but Swiss Re has dropped outof the bidding. ING has retained investment bankLehmann Brothers to advise on the sale.

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Relax inRhodeIslandRhode Islandlawmakers in the UShave passed a bill torelax the regulationof personal linesinsurance rates inthe state. A flex-rating measure,approved by theHouse and Senate,now enablesinsurers to increaseor decrease rates byno more than fiveper cent within aone-year periodwithout priorapproval from thestate. Rate changes higheror lower than theapproved figurewould still be subject to prior state approval by theDepartment of Business Regulation.Frank O’Brien, Vice President and New EnglandRegional Manager for the Property Casualty Insurersof America (PCI), said: ‘While this bill does not go asfar as the National Conference of InsuranceLegislators (NCOIL) model, which calls for a flexiblerange of up to 14 per cent for rate fillings, it is,nonetheless, a significant first step for Rhode Island.’‘This new law takes effect immediately and will allowthe Department of Business Regulation to shift itsfocus to areas of regulation that are more importantthan routine rate and form filling revisions,’ headded.


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Amanda Blanc, Distribution and CustomerService Director at Groupama

With the new smoking ban in placein New York, residents are enjoyinga smoke-free environment in bars,restaurants and other public places.But now, mayor Bloomberg isplanning his next step in creating a more pleasantenvironment for the people of his city: in thepipeline are the most radical anti-noise laws inthree decades.'Complaints about noise are not frivolous,' pointsour Bloomberg, stating that noise disturbs sleep,prevents people from enjoying their time off workand too often leads to altercations where thepolice have to intervene. Noise can also causedamage to people's hearing if they workin a noisy job. To put an end to thesedilemmas, mayor Bloomberg is targetingsuch culprits as dogs, air conditioningunits, construction workers, car alarmsand even ice cream vans in his new lawsaimed at ensuring New Yorkers can getaway from too much noise pollution.Not wanting to be seen as a killjoy,Bloomberg claimed that the idea behindthe reforms was to 'balance the need forconstruction, development and an excitingnightlife, with New Yorkers' well-deserved right toa little peace and quiet.' It seems fair enough, butwhether this is possible or enforceable in realityremains to be seen.

All quiet inthe Big Apple

Travellers visiting Rome this summer, who don’tfancy getting into trouble with the locals, should beaware that the city’s police force are cracking downon people cooling themselves in the city’s manyfountains. According to The Times, the city’smayor, Walter Veltroni, has ordered police to gettough in enforcing laws that forbid people to puttheir hands or feet in the fountains.Newspaper Corriere della Sera says that Italians aregetting annoyed by people swimming, washing anddangling their feet in Gianlorenzo Berlini’s great

Baroque creations. Accordingly, Rome’smost famousfountain, the Trevi, isnow being guardedby police officers.One is quoted assaying: ‘The momentour backs are turned,off come the sandalsand in go the feet.’

St Petersburg, the Russian city often referred to asthe ‘Venice of the North’ for its palace-linedwaterways, has now got its own fleet of authenticgondolas. Alexander Smirnov, whose idea it was to

get the modeof transport tothe city says,‘It will be greatif the blackswans ofVenice goalong thecanals of StPetersburg.’ Smirnov’s

company, Venetsia Nord, currently has just sixgondolas, but if the 10-a-ride service provespopular, he assures us it can be expanded. Lets justhope people don’t indulge in too much of the localtipple before taking a trip!

Careful on thevodka

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Ombudsman reopens Equitable inquiryThe UK’s parliamentary ombudsman Ann Abrahamshas agreed to reopen her inquiry into the problems atEquitable Life, raising the hopes of policyholders whoare still seeking compensation from the governmenton the grounds that the Financial Services Authority(FSA) failed to act on Equitable’s difficulties. Ms Abraham's initial inquiry into Equitable, publishedlast year, looked at theregulation of the societybetween 1999 and 2001,clearing the FSA of allegationsof regulatory failure. However,the report was criticised for notlooking before 1999, when theTreasury and Department ofTrade and Industry wereresponsible for the society'sregulation.Since Lord Penrose’s report,published in March, whichshowed a number of government failings pre-1999,Ms Abrahams has been pressurised to re-investigate. The Government Actuary Department(GAD) is one department people are keen for theombudsman to probe.

In a statement to parliament, she said that theinvestigation would ‘focus on the actions (includingthe failure to act) of the government departmentsresponsible’, but is well aware that the CabinetOffice must grant permission before she canproceed with an investigation into GAD.Ms Abrahams has, however, warned that her investigation

is not likely to be completedquickly. She has said she wouldneed to establish a ‘full, designatedteam’ of investigators. ‘I hope thisinvestigation can be conductedwithin a reasonable time frame, as Iam conscious that significantnumbers of people – many ofthem elderly – are in difficultfinancial circumstances now.’Equitable first ran into problems inJuly 2000 when the UK’s Houseof Lords ruled that it had acted

unlawfully in cutting bonuses on policies with guaranteedannuities. The decision left it with a £2 billion deficit in itsfinances and opened the door to legal challenges thatseem to be ongoing. It is hoped that this investigation willat least close chapters for some unlucky policyholders.

Ann Abrahams

Allstate Life willconsider Israel-boundapplicantsTravel insurance to Israel has been more than atouchy subject in recent times for reluctant Insurers.Ronn Mullins reports on a company that is steppingup to insure travelers to the notorious hotspot.

Responding to a lawsuit in California, Allstate LifeInsurance Company is the first company to agree toconsider applications from travellers who went or areplanning to travel to Israel, the West Bank and Gaza.The lawsuit against 13 major life insurers alleged

unfair business practicesin their failure to issue lifeinsurance policies fortravellers to Israel.Allstate still believes thereis an increased riskassociated with travel tocountries to the areas onthe US Department ofState's Current TravelWarnings List. However,

the company is choosing not to use that risk factor forcustomers who may travel to Israel, the West Bank andGaza. In keeping with sound actuarial principles, Allstatewill continue to evaluate each life insurance applicationon an individual basis, and will continue to use a varietyof other factors in the underwriting process todetermine risk, such as considering health conditions.

Medical evaluationsonlineCitybond Suretravel has launched a medical screeningfacility for use by agents and their clients, available24/7, via the Internet. The online system is based onthe instant assessment of medical risk, calculation andcollection of additional premiums, where necessary,

and issue of policy endorsements by e-mail or post.Citybond’s Managing Director,Mansukh Ganatra, said: ‘I am delightedthat we have been able to launch thisservice that complements our coretravel insurance products…Althoughsimilar systems are around, thisappears to be thefirst stand-alonemedical screeningwebsite dedicatedto agents and theirclients in the UK.’

ABTA members getfree travel insurance

Agents’ websiteRock Insurance has launched an insurance websiteoffering insurance agents the ability to sell travelinsurance products through a personalised, over-branded site. Provided free to all those signing up bythe end of September, the site gives agents theability to compete with direct sell companies onboth price and quality of product whilst generatingadditional profit for the agency.Agents can market the site directly or via their ownwebsite and can book a selection of insuranceproducts online and choose to have the policydocumentation delivered via email or by post.Companies using the site have complete access tomanagement information including the number ofpolicies sold broken down into individual producttypes, conversion rates, commissions earned, andso forth and can have their branded siteoperational within two working days. Antony Martin, Managing Director of Rock Insurance,comments: ‘Agents’ sales of travel insurance havebeen hugely affected by the considerable growth ofthe direct sell online insurance sector over the pasttwo years. The highly competitive pricing andsuperior product quality available to them throughthe Insurance Affiliate site offers agents the ability tocompete with online providers and regain some of thesales that generate valuable commission earnings.’

Doctor’s databaseMondial Assistance has been busy evaluating 800clinics and hospitals in 108 countries throughout theworld to produce a database to help doctors makecrucial decisions when treating people far fromhome. The objective is to provide regulatorymedical teams with all the information needed totake the best decision in the event of a medicalproblem or accident in a zone with little or nomedical coverage.Information collected on countries and healthestablishments is available on the Mondial AssistanceGroup Internet site for use by the 500 regulatorydoctors and co-ordinators involved in managingmedical cases. The database includes precise data:each establishment undergoes a detailed annualevaluation (quality of care, hygiene, equipment,personnel, contact with local doctors, administrativedata, languages, etc.), resulting in a global score fromone to five.The tool enables Mondial doctors to rapidly – andfrom a distance – identify the establishment bestsuited to each pathology. ‘Our duty as an assistanceand travel insurance company is to enable our 250million customers to travel in complete confidenceand to give them the certainty that they will beprovided with the best possible solution to a healthproblem that local conditions allow,’ says AlainDemissy, President of Mondial Assistance Group.‘The tool contributes to achieving this objectivesince it enables our regulatory doctors, depending

on a patient’s condition, pathology and immediatemedical environment, to rapidly determine whetherthey can treat him/her on site, or whether he/shemust be transferred to an establishment more suitedto his needs or be repatriated.’Mondial has focused on the evaluation of medicalestablishments in countries and major cities attractingtourist and expatriates. Of the countries evaluated,about half possess good quality medical structures:they found that Africa remains a 'medically under-equipped’ continent, but that key cities are wellequipped. The Middle East was found to have goodestablishments in cities frequented by tourists. Apartfrom countries with economic difficulties, LatinAmerica is apparently seeming to progress inmedical care in spite of overall uneven standards.Asian cities are reportedly on a par with Westernstandards and Europe remains a two-tier continentwhere change is likely to occur in the near future.In all, eight per cent of the establishments evaluatedby Mondial possess an insufficient level of medicalcare and require immediate transfer or repatriationof patients. Twenty-two per cent could treatstraightforward pathologies. Thirty two per centhave a level considered good or adequatedepending on pathology. Twenty nine per cent areconsidered good centres of reference and lastly, nineper cent are judged to be able to treat allpathologies in the best possible conditions.Indeed a useful tool!

US citizens coveredThe Blue Cross and Blue Shield Association (BCBSA)has selected World Access to continue to provideinternational assistance and claims services to theassociation’s BlueCard Worldwide Program andFederal Employee Program (FEP) through to 2006.BlueCard and FEP members who are living ortravelling outside the US can use World Access’s24-hour hotline and worldwide network ofhealthcare providers, gain access to the healthinformation website and a range of claims services. ‘In collaboration with BCBSA and FEP, World Accesshas built a comprehensive, global provider networkto serve our customers,’ said Frank Coyne, VicePresident of Inter-Plan Programs at the Association.‘As a result of our collaboration, our members willhave enhanced, international access to healthcareproviders.’‘We want to provide peace of mind for BCBS’members overseas,’ said Jan Ansell, President andCEO of World Access. ‘World Access is pleased tocontinue supporting BCBS Plan’s members.’

Allied World’saccident and healthreinsuranceAllied World Assurance Holdings’s subsidiary, AlliedWorld Assurance Company (AWAC), has hookedup with Vespasian Management Limited, a London-based accident and health reinsurance specialist, forsupport in the development and management of itsaccident and health reinsurance business.President and CEO, Scott Carmilani, commented:‘Our partnership with Vespasian effectively providesus with the expertise and market knowledgenecessary for us to take advantage of opportunitiesin the accident and health reinsurance market thatwe would not otherwise consider. The Vespasianteam possesses a wealth of experience and a longtrack record of success in this field and we aredelighted to be moving forward with them.’Vespasian’s CEO, Craig Tyrell, noted: ‘Working withan insurer of the calibre and financial standing ofAWAC creates a compelling proposition for brokersand clients alike. We are delighted by the confidencethat AWAC has shown in us.’

Oz contract for AXANational Australia Bank has awarded a travelinsurance contract to AXA in the UK. Under thecontract, AXA travel insurance policies will beoffered to customers of National’s four Europeanbanks – the Clydesdale Bank, Yorkshire Bank,Northern Bank and National Irish Bank.


COMPANYBRIEF10

The Association of British Travel Agents (ABTA) haveconfirmed that they will require all delegates travelling toOrlando for the ABTA Convention in October to beadequately insured for the period of their trip. ABTAhave once again appointed Citybond Suretravel as theofficial travel insurance provider to the convention.Citybond, in association with their underwriters, EuropAssistance, have agreed to offer all ABTA memberdelegates free travel insurance cover and, for all otherdelegates, including companions, cover at a reducedpremium of £15 per person. Provision is also in placefor all delegates to extend their Citybond policy by afurther 7 or 14 days for an additional premium. Citybond Suretravel's Sales Director, Iain Chalmerssaid: ‘With the very high cost of medical services inthe US, it is no surprise that ABTA are requiringdelegates to have adequate cover in place. Being anABTA travel industry partner, we are delighted tooffer free cover to all ABTA members as we did lastyear in Palma.’The policy is only available for purchase online fromABTA’s website.

The AA Motoring Trust has just released theirEuroTest* 2004 reporting the results of a pan-European car ferry testing programme - lookinginto the safety of the ferries. Their findings showedthat UK ferries were among the best; Greeks theworst. Chris Wales looks into the study

‘UK car ferries are now among the safest in Europewith major improvements in standards since the lastAA survey in March 2000.’ This was the headlineresult of the EuroTest inspections of 34 car ferriesacross Europe, including eight sailing from UK ports.Each ferry was judged by highly experienced andqualified marine surveyors on a wide variety ofcriteria; including safety information, emergencydrills, cargo handling, fire equipment, lifejackets and lifeboats, bow doorcondition, construction and navigationsystems.The report showed that the 16 millionpeople travelling on car ferries from UKports each year are now in safer handsthan they were when the survey waslast carried out four years ago. Backthen, several UK ferries were ratedamongst Europe’s worst for safety butnow they set the standards to whichother vessels sailing in European watersmust aspire. Luke Bosdat, spokesman for the AA,said, ‘All eight of the ferries surveyedsailing from UK ports were highly ratedby the inspectors – three rated verygood and five rated good, but further afield, particularly in the easternMediterranean, notably around Greece,too many older ferries are below thestandards of the best.’

Thirty-four ferries operating in the North Sea, BalticSea, the English Channel, the Irish Sea and thewestern and eastern Mediterranean were tested.With the exception of two high-speed catamaransthat ran at significantly more than 30 knots, theremaining 32 ships were conventional Ro-Ro (rollon/roll off) passenger ferries. The ferries in the testcalled at ports in Belgium, Germany, France,Greece, United Kingdom, Ireland, Italy, Croatia,Holland, Norway, Morocco, Sweden and Spain.The inspectors were internationally recognisedindependent nautical experts: Vereidigte NautischeSachverstandige (Hamburg); Independent MarineConsultants & Surveyors, (IMCS, Rotterdam);Nautical Commission to the Court of Commerce,

(Antwerp) and Facultat de Nautica, (Barcelona).Between 6 and 19 March this year they boardedthe ships (at their own expense) and travelled astourists. They then examined the condition of eachship on the basis of a checklist together with thesafety facilities accessible to the passengers.After the first incognito test the survey team thenintroduced themselves to the Captains. They wereable to inspect ship’s documents, verify the testresults and inspect items that were impossible toexamine incognito. Also, whenever possible, theinspectors asked for drills to be carried out in orderto see how fast the crews responded. Enginerooms were also surveyed and they had emergencygenerators and pumps put into operation.

CATEGORIES INSPECTEDGeneral safety/safety information: Ease of access and illumination of escape routes andemergency exitsSafety instructions for passengers over loudspeakers and on video in different languages Signs indicating safety facilities such as assemblypoints; escape routes; fire fighting equipment; life-saving equipment; illuminated strips alongescape routesLayout plans with location details; securingof vehicles; handling of hazardous goodsSecurity control of passengers, vehicles,luggage, and car deck during check in Existence of detailed passenger lists

Construction and stability:Black box on boardCalculation of load and ship stabilityCondition and water-tightness of the doors,bow/stern doors and ramps of car deckSurveillance to show watertight doorsclosed/water not enteringPassenger access to car deck duringcrossing

Fire protection:Smoke detection and fire alarms systemHoses, couplings, hydrants at fireextinguishing pointsFire extinguishersFire dampers and ventilation flapsFire doorsSprinkler systems

Life-saving equipment:Condition/ease of access and storage ofrescue boats, rescue motorboats, life rafts,lifebelts, life jackets and evacuation systemsHelipad and helicopter winch pad

Radio and navigation equipment:Technical equipment, foe example automaticidentifications of ships

Safety management:Training of crew in matters of safetyWeekly emergency drills by crewWeekly inspection of ship, documentation ofdefects and their elimination

The positive outcome of the 2004 Ferry Testis the result of efforts by EuroTest and itsproject manager (ADAC-the German AA)which since 1996 has been dedicated toachieving higher safety on board Europeanferries. The publication of the results of earlierferry tests have uncovered poor conditions;irresponsible shipping companies have beenexposed and consumer awareness of safetyhas been increased. Successes have also beenachieved at a political level with key elementsof the EuroTest methodology included in EUlegislation; for instance in EU directives

98/18/EC and 99/35/EC.* Eurotest 2004 is a consortium of motoring organisations in

Europe: The AA Motoring Trust (UK), ACI (Italy), ACP (Portugal),

ADAC (Germany), AL (Finland), AMZS (Slovenia), ANWB

(Netherlands), FFAC (France), HAK (Croatia), NAF (Norway),

OAMTC (Austria), RACE (Spain), RACC (Spain), TCB (Belgium),

and TCS (Switzerland).

Full report can be accessed on: www.AAtrust.com

Load factors up,but service downThe good news is that the major US airlinesincreased their traffic levels by up to 13 percent in the first half of 2004 compared to thecomparable period last year. The bad is thattheir service – measured by late arrivals,cancellations, mishandled baggage, anddenied boarding (oversales) – hasplummeted. Milan Korcok reports on howthey just can’t seem to get it right

According to the US Department ofTransportation (DOT)’s Air Travel ConsumerReport, the 19 major carriers surveyedreported an on-time arrival rate of 77.6 percent in May 2004 – that is below the 84.9 percent on-time arrival rate in May 2003 and the83 per cent rate in the previous month ofApril 2004. Every airline except America Westreported a worse on-time performance thispast May than in the previous month and inthe comparable month last year.

The greatest traffic growth in the first half of theyear was reported by United Airlines – 13.4 percent – for a load factor in June of a robust 86 percent. But its on-time performance plunged byalmost 11 per cent from the previous April andMay of 2003.Continental, which also had almost a 13 per centincreased load factor in the first half of 2004showed an 11 per cent deterioration in on-timearrivals in May. The highest on-time arrival rateswere recorded by Hawaiian Airlines (95.2 percent), SkyWest Airlines (86.8 per cent) and JetBlueAirways, (83.4 per cent). The worst on-time arrival rates were all regionalcarriers –Atlantic Coast Airlines (69.4 per cent),American Eagle Airlines (69.5 per cent), andExpressJet Airlines (74 per cent). The worst on-time performance of any flightrecorded was by ExpressJet Flight 2933 fromAugusta, Georgia to Newark, New Jersey (servingthe New York City metropolitan market): it waslate 92.31 per cent of the time.Atlantic Coast, American Eagle and ExpressJet alsorecorded the highest cancellation rates. Overall, inMay 2004 the major carriers cancelled 1.7 per centof their scheduled domestic flights, more thandouble their cancellations in April 2004 and May2003. The lowest cancellation rates were by JetBlue (twoof 7,335 flights – rounding out to 0 per cent),Hawaiian Airlines to 0.2 per cent and ATA Airlines(0.3 per cent).According to the government report, airlines in theUS also grew clumsier in their baggage handling asthey flew more passengers. In May 2004,mishandled baggage was reported by 4.13 out ofevery 1,000 passengers (compared to 3.67 theprevious month).As for ‘oversales’ – boardings denied because seatswere sold more than once – the ratio climbed to1.07 per 10,000 passengers for the first quarter of2004, up from 0.9 in the comparable period lastyear. Alaska, Delta and Southwest had the greatestincrease in denied boardings over the comparableperiod last year.Ironically, only in the area of passenger complaintsdid the airlines report improvement – slightly.According to the DOT analysis, the department

received 447complaints of poorservice in May 2004,8.6 per cent fewerthan the 489 receivedin May 2003 and 19.6per cent fewer thanthe 556 filed in April2004.

How safe are European ferries?


11TRAVELMATTERS

Overall UK Results

Name of Ferry Ferry Company Route Grade Awarded

Pride of Cherbourg P&O Portsmouth/Cherbourg Very GoodEuropean Highlander P&O Irish Sea - Larne/Cairnryan Very GoodDublin Swift* Irish Ferries Holyhead/Dublin Very GoodStena Hollandica Stena Line Harwich/Hook Holland GoodPride of Dover P&O Dover/Calais GoodCezanne SeaFrance Dover/Calais GoodLagan Viking NorseMerchant Belfast/Liverpool GoodPride of York P&O North Sea Hull/Zeebrugge Good

Baltic/North Sea/Irish Sea/English Channel Results


Peter Pan TT-Line Travemunde/Trelleborg Very GoodPride of Cherbourg P&O Cherbourg/Portsmouth Very GoodEuropean Highlander P&O Irish Sea Larne/Cairnryan Very GoodDublin Swift Irish Ferries Holyhead/Dublin Very GoodPrincess Ragnhild Color Line Keil/Oslo GoodStena Hollandica Stena Line Harwich/Hook Holland GoodCezanne SeaFrance Calais/Dover GoodLagan Viking NorseMerchant Belfast/Liverpool GoodStena Germanica Stena Line Gotenborg/Keil GoodPride of York P&O North Sea Zebrugge/Hull GoodTrelleborg Scanlines Trelleborg/Sassnitz GoodNormandy Irish Ferries Rosslare/Chrebourg Good

Western Mediterranean Results


Excelsior Grandi Navi Veloci Palermo/Genua Very GoodSorolla Transmediterranea Barcelona/Mallorca Very GoodMilenium Dos* Transmediterranea Ibiza/Valencia Very GoodMega Express II Corsica & Sardinia Savona/Bastia Very GoodDaniella Casanova SNCM Bastia/Marseille GoodScandola Le Meridionale Marseille/Propriano GoodAtlantica EuroFerrys Algeciras/Tangier GoodIchnusa Saremar/Tirrenia Bonifacio/S Teresa GoodVincenzo Florio Tirrenia Naples/Palermo GoodBahia de Malaga Baleria Malllorca/Ibiza AcceptableAtlas IMTC Tangier/Algeciras AcceptableFlaminia Tirrenia Olbia/Civitavecchia Poor

Eastern Mediterranean Results


Superfast VI Superfast Ferries Patras/Ancona Very GoodPasiphae Palace Minoan Lines Venice/Igoumenitsa GoodBlue Star Paros Blue Star Ferries Patros/Piraeus GoodBlue Star Naxos Blue Star Ferries Paros/Santorini GoodIvan Zajc Jadrolinija Split/Rijeka AcceptableMarcko Polo Jadrolinija Ancona/Split AcceptableEkaterina P Hellenic Flame Igoumenitsa/Corfu AcceptableExpress Poseidon Hellas Ferries Santorini/Paros AceptableRodanthi GA Ferries Piraeus/Paros Poor

*High speed ferry

EXAMPLE OF TEST REPORT

Strengths and weaknesses of Pride of Cherbourg

Rat ing: Very goodRoute: English Channel,

Portsmouth (England) – Cherbourg (France)

Crossing time (according to timetable): 8h 30mFlag:United KingdomPort of registry: PortsmouthShipping company: P&O FerriesYear built: 1995Design/type: Ro-Ro passenger ferryMax. no. of passengers: 1,600Test date: 11 March 2004

Strengths• Modern ship, very well serviced• Passenger list provided• Facilities for passengers with disabilities on board• Clear signs, easy orientation• Illuminated strips along corridors and on stairs• Easy to understand notices stating what to do in an

emergency at assembly points in English, French and Spanish• No access to car deck during crossing• Safety facilities very well serviced and tested regularly• Evacuation chutes provided (escape facilities similar to

those provided on aircraft) • Crew well trained and competent• Regular emergency drills carried out with crew• Automatic radar identification of ships• Black box on board

Weaknesses• No security control during check in• Awkward manoeuvring of cars on car decks• Safety instructions over loud speakers only• Not all rescue boats fitted with hard tops

Pushing tin acrossEurope

As the number of new airlines in Europe increases– especially with the addition of 10 new EUmember states and their low-cost carriers – thereare worries that there is not enough room in thesky to enable effective traffic control and dealwith the congestion safely. Leonie Bennett looksinto the crisis

In a worrying new report, Eurocontrol has warnedthat Europe’s skies will be ‘full’ in less than adecade. Control centres across Europe are co-ordinated by Brussels-based agency Eurocontrol,which matches take-off and landing slots in 33countries, including France, Germany, Spain and theUK. In any 24-hour period, the agency looks after some29,000 flights and Eurocontrol is now predictingthat, by 2020, this number will dramaticallyincrease and current aircraft numbers will double.Victor Aguado, Director General of Eurocontrol,has said: ‘In the middle of the next decade, we will

reach capacity in the present systems. Beyond that,we’ll need something else, which today’s

technology can’t provide.’According to the agency, actionhas already been taken to dealwith the increasing numbers intraffic: the minimum heightseparation has been cut from2,000ft to 1,000ft and cannotrealistically be cut further. Safetyexperts are also now workingtowards ‘self-separation’technology that will limit therole of controllers by improvingelectronic equipment allowingaircraft to set safe paths awayfrom each other automatically. The rise in popularity of low-cost airlines and the growth innew EU countries are beingblamed for the rapidlyexpanding amount of traffic. TheUK has two well-establishedno-frills carriers – Ryanair andEasyJet – but other countriesare hot on their heels. In spiteof the harmonisation work ledby national administrationsthrough the Joint Aviation

Authorities (JAA), there are still considerabledifferences between countries’ practices and it isnot unusual for the requirements imposed onoperators to vary from one country to another. Eurocontrol reckons six states have safetymanagement below acceptable levels, but will notname names. Erik Merckx, Eurocontrols’s Head ofSafety Enhancement, said, however: ‘If we don’tget these new states up to speed, with theincreasing traffic levels we are predicting, we willhave a problem.’ David Sanders from the UK Civil Aviation Authoritytold ITIJ that the EuroControl reports wasinaccurate: ‘As the organisation responsible for thesafety regulation of UK air traffic control, we believethat there is no justification in the suggestion thatour skies are becoming unsafe.

Have I got anythingto declare?

EasyJet claimsto have madehistory recently,when everypassenger on aflight to PraguefromNottinghamEast MidlandsInternationalAirport, UK,including thosewith holdbaggage, usedthe self-check-in kiosks rather than the traditional check-in process.The flight departed on time with the correct luggagein the hold and all 108 passengers onboard.The Department for Transport-approved trials ofthe new self-check-in kiosks began at NottinghamEast and will continue over the coming months

before being rolled-out at other airports, ifsuccessful.EasyJet ultimately wants to see kiosk-onlycheck-in for every service at every airport inorder to dramatically reduce costs. Someairlines have offered self-check-in forpassengers with hand luggage for a numberof years and a small number allow self check-in for those with hold baggage. However, allthese airlines allow passengers to check-inusing either kiosks or traditional methods.Ray Webster, easyJet Chief Executive,commented: ‘It is a fantastic achievement forall passengers to check-in for a flight usingone of our kiosks… In due course, thiscould revolutionise the airport process inthe way that the Internet revolutionised the

booking process. Central to this new technology, isthe ability to improve passengers' airportexperience. It will also allow staff to give more oftheir time to customers and better attend to theirindividual needs.’In another move, easyJet is again going out into themarket place and asking airports all over Europe tooffer themselves to the airline. The airports need toself-select according to a set of criteria, includingwhether they can support 20-minute aircraftturnarounds. Last summer the airline launched anidentical campaign to which 83 airports responded;resulting in Berlin, Dortmund, Basel, Cologne,Budapest and Ljubljana joining the network.

Taiwan promiseThe Taiwan High Speed Rail Corporation (THSRC)has unveiled plans for the operation of its high-speed train service when it is launched in Octobernext year. Following the importation of the trainsfrom Japan at the end of June, THSRC willtransform into a service provider once it startstransporting passengers in 2005. Despite rumours that the company is experiencingfinancial difficulties, THSRC remains confident it willmanage to complete on target. Chairwoman NitaIng is quoted as saying that her promise in 1999 toprovide the public with a safe and comfortablehigh-speed railway service will come to fruitionwithin a year and a half. The service will originally run from Taipei toTsoying, with stops at eight stations. There arehopes that by 2010, three more stations will havebeen added and the high-speed service will run toNankang Station in the north.THSRC spokesperson and Deputy GeneralManager Lin Tien-song estimated that travel byhigh-speed rail would cost around TW$3.459 (US$0.1) per kilometre, but there will naturally bediscounts for the whole 345 km from Nankang toTsoying. Lin suggested that, on average, fares willfall somewhere between the price of a plane ticketand a conventional train ticket.

Air attendants want fight not flight

American flight attendants want to be trained tofight rather than co-operate with plane hijackersand terrorists, but their demands are beingignored by airlines and the government agenciesset up to protect the flying public. Milan Korcokreports

Testifying to the US Senate Commerce, Science

and Transportation Committee, Patricia Friend,President of the 46,000-member Association ofFlight Attendants (AFA) said: ‘Unbelievably, almostthree years after the horrific events of 11September 2001, we still have not been trained toappropriately handle a security crisis or terroristattack onboard our airplanes.’The 11 September hijackers beat the last line ofdefence, said Friend, ‘because the professionals(attendants) had been trained to co-operate withhijackers, not fight them.’She said, ‘Their wrists were bound, their throatsslashed, and they died with the knowledge that theywould no longer be there to help those whom theywere entrusted to protect.’Since that time, she said, the Federal AviationAdministration, the Transportation Security Agency,Department of Homeland Security, and Congresshave consistently backed away from requiring basicmandatory minimum standards of training for allattendants, and consequently: ‘We are no betterprepared today to handle a situation like that whichoccurred on 11 September and our training is stillwoefully inadequate.’In addition, she said, federal air marshals are stillbeing told, ‘if necessary, shoot through a flightattendant’, in dealing with airborne crises. In fact, airmarshals still shoot the flight attendant mock-up intheir training simulations. ‘Doesn’t it make moresense to train that flight attendant to assist in a crisisrather than to be human shield?’The Air Transport Security Act, passed in theautumn of 2001, required the FAA to update andimprove currently existing flight attendant securitytraining, said Friend, with the intention that allcarriers across the industry would implement similarif not identical training. In 2003, a federal law-Century of Aviation Re-authorization Act waspassed requiring the TSA to develop voluntaryadvanced flight attendant security training modules.But they are not yet in place, and even so, they arevoluntary, not mandatory. In her Senate testimony, Friend said ‘There [is] a widevariance in the type of training and the hours spent ontraining. Some carriers [are] showing flight attendantsa 20-minute video, while others [are] conducting twofull days of voluntary, hands-on training.’

‘Even more amazing’, said Friend, ‘was the fact thatall of these programmes received approval fromtheir FAA Principal Security Inspectors, whichhighlighted to us…that the FAA was not adequatelyprepared to handle supervision of the securitytraining programme.’The AFA has advocated a mandatory 28 hours ofdetailed flight attendant security training at all

carriers, with the training programmeto be developed by security expertsat the Transportation Security Agency.Friend further told the Senatecommittee that the FAA and the TSA‘have been susceptible to pressurefrom the airline industry in weakeningmeaningful and comprehensiverequirements.’She said the nation’s air carriers, citingreasons of cost, have made ‘repeatedback door legislative efforts’ to gutthe requirements of the HomelandSecurity Act that would haverequired them to abide by anyindustry-wide training standards.‘It appears to have been theirgoal, through these repeatedlegislative efforts, to make security

training for flight attendants voluntary, make theflight attendants pay for the training themselvesand prevent any industry wide standards forsuch security training,’ she said.Without a mandate from Congress directing theTSA to issue mandatory training guidelines,adequate training programmes will notmaterialise, she said.‘At this time, the security training programmes ateach airline have only become worse,’ she said.‘The programmes have been simply watereddown more and more over time as it becomesa race to the bottom to see which airlines canget away with the cheapest and easiestprogramme.’In support of the flight attendants, the Senatecommittee ranking member Ernest (Fritz) Hollingsand some 30 Senate colleagues, wrote to DavidStone, TSA administrator, expressing their concernwith ‘the lack of progress on developing guidelinesfor mandatory industry-wide flight attendant securitytraining and [we] would appreciate knowing ofyour progress on developing such guidelines andwhen we can expect these standards to be inplace.’The letter also noted: ‘We remain troubled thatflight attendants are reporting that the trainingprogrammes implemented by carriers varydramatically throughout the industry and insome cases are not focused on effectiveness,but by what is quickest and most convenientfor the airline.’Jim May, President and CEO of the AirTransport Association, representing the nation’sairlines, told the Senate committee that directand indirect security costs were already totallingmore than $3.8 billion for the airline industry –equal to 48,000 airline jobs or 340,000commercial flights. He further emphasised theairline position that the security costs should beborne by the federal government just as are thecosts of national defence.Asa Hutchinson, Undersecretary for TransportationSecurity at Homeland Security told the committeethat the government would soon have an advancedlevel training module ready for voluntary use byairlines, which could hopefully lead to a universalcode of practice.

No extreme sports… we’re BritishAccording to The Daily Telegraph, British Airways (BA)is planning to force cabin crew who like jumping out ofplanes to take out their own personal insurance. Thepaper says that after a spate of accidents, BA haswithdrawn insurance cover for any of its 47,000employees who enjoy parachuting, bungee jumping,

abseiling or scuba diving between flights.It quotes insurance claims manager GordonSimpson as saying: 'We fully support and encouragelight exercise, especially before and after long-haulflights, but we do not feel undertaking hazardoussports is compatible with duty travel.' continued on p.30


TRAVELMATTERS12

2.9

2.9

3

3.6

4.2

4.8

5.1

5.5

5.9

7

Forecast annual growth in flightsFrance

Germany

UK

Italy

Ireland

Poland

Romania

Belarus

Turkey

Ukraine

2004- 2010 (%)

United Airlines strikes out on federal loanguarantees

It’s three strikes and out for United Airlines,which was told on 28 June that it would not bereceiving federal loan guarantees to help it getout of bankruptcy, and it would not get a fourthchance to revise its application for suchguarantees. Milan Korcok reports

The airline, the nation’s second largest, had theprevious week filed a revised application (it’s third),which sought $1.1 billion – $500 million less than theapplication it filed December 2003, and $700 millionless than it initially sought from the Air TransportationStabilization Board (ATSB) two years ago. The airlinesays it needs $2 billion to exit bankruptcy, which itsaid it had hoped to do by the end of this year.United has been under bankruptcy protection sinceDecember 2002, after its application for a $1.8billion loan guarantee was denied by the ATSB, afederal agency set up in the wake of the September11 terrorist attacks to help the ravaged airlineindustry stabilize and regain financial strength. The ATSB denied United’s earlier applications for lackof a viable business plan and for failure to prove thatthe airline was crucial to the nation’s aviation network.Each time, however, the board encouraged United tore-submit its application. This time the ATSB firmly shutthe door on any further re-submissions. It told United:‘The board will not accept any further submissionsfrom United with respect to the application.’The ATSB rejection of United’s final proposal waswidely anticipated even though United had alreadywon large wage concessions from pilots, attendants,machinists and other workers, had trimmed itsworkforce by almost 40 per cent since mid 2001,had reduced operating costs by almost $5 billion ayear, and had launched low-cost carrier Ted to helpit recoup markets it had lost to discount airlines.United CEO Glenn Tilton told the media in Junethat it was possible United might be able to emergefrom bankruptcy without the aid of federal loanguarantees, but a ‘yes’ vote by ATSB would havehelped that emergence a lot faster. United says ithad loan commitments for approximately $2 billionfrom Citigroup Inc and J.P. Morgan Chase &

Company contingent upon getting the federalguarantees.Now, airline analysts believe United will need amajor investor – an option that will come at highcost to the company’s existing corporate control. Itwould involve, they say, an equity partner who willmake large demands on the company, itsshareholders and a workforce that has already givenup a lot of ground. According to industry sources,United is looking for additional cuts of about $2billion in wages and benefits, but the company’sunions have already drawn lines in the sand.The International Association of Machinists (IAM)immediately issued a statement warning the airlineto keep hands off its members. ‘The intent of theATSB decision is to trigger yet another round ofemployee sacrifices,’ said IAM District 141 PresidentRandy Canale. ‘This is an opportunity, perhaps thebest opportunity yet, for United to rise aboveexpectations and refuse to use its employees ashuman fertilizer to satisfy lenders and politicians. Itwill not serve United to exit bankruptcy at theexpense of thousands of front line employees onwhose backs the airline’s recovery ultimately rests.’As United goes back to the equity markets to findits way out of bankruptcy, another US airline giant,Delta, is also courting the possibility of bankruptcyprotection. Gerald Grinstein, Delta Airlines CEO,has already told investors that his airline’s access tothe capital markets has just about disappeared andthat bankruptcy was a possibility.At the same time, US Airways is again dancing onthe edge, looking at the possibility of diving intobankruptcy for a second time since 2001. It justemerged from its first bankruptcy last year.

Expedited security pre-clearance being testedin USA pilot program to help frequent, business flyersin the US skim their way around time-consumingsecurity checkpoints has been inaugurated atMinneapolis/St Paul International Airport incooperation with Northwest Airlines and will soonbe spun off to a handful of other selected cities,including Boston, Houston, Los Angeles, andWashington, D.C.. Milan Korcok reports

The Registered Traveller Pilot Programme, administeredby the federal Transportation Security Administration(TSA), is designed to get the most frequent of frequentflyers, i.e. those who travel at least once a week, out ofthe line-ups endured by the masses and into expeditedlanes reserved only for them.The payoff for the Registered Traveller (RT) isobvious, but there is a price. In order to becomeregistered, applicants must pre-enrol with the TSAand provide background information such as name,address, date of birth, background, and certainbiometric identifiers such as finger or iris scans. TheTSA then conducts a security assessment of eachvolunteer, including analysis of law enforcement andintelligence data sources and a check of outstandingcriminal warrants. Approximately 2,000 customerswill participate at each test airport.Once cleared, the RTs will enter a designatedcheckpoint lane where they will only need to showphoto identification, and provide a finger or iris scan tosecurity agents. They will still go through primaryscreening with their carry-on bags, but more extensivesecondary screening will be largely eliminated.Enrolment in the test programme is controlled by

invitation. For the Minneapolis test, NorthwestAirlines invited its Platinum Elite flyers to apply.Airlines cooperating at the other test sites will havealready sent out invitations to its most frequentflyers. The test programmes are intended to run forabout 90 days at each site after which they will beassessed for wider application. The tests will rununtil about November.Carol Devine, President of the National BusinessTravel Association said that when the test period isover ‘we hope to see the implementation of apermanent Registered Traveller Programme operatingon a fully voluntary basis that speeds the screeningprocess for all travellers, particularly business travellers.’Airline spokesmen have also endorsed the pilotprogramme noting that their bottom line is highlydependent on business travellers – those who paytop retail dollar for seats less frequent travellers getfor a fraction of retail. If shorter lines andconvenience at check-in does the trick, so be it.If the programme passes the test stages favourably,the question of cost is bound to arise.Right now, the programme is free to flyers, but iscosting the government $3.78 million. If it becomesimplemented nationally, flyers might well findthemselves footing the bill themselves. Some havealso raised concerns about how the information anddata such as e-mail addresses, cell phone numbers,previous addresses, and so forth, will be used andsecured by the TSA and its private contractors: theairline industry is still reeling from consumer criticismabout its handing over of passenger data forgovernment security analysis testing programmes.

Coastguard crisis

In the UK, the government has raised the alarm onthe Maritime and Coastguard Agency operating‘unacceptable’ staffing levels. Members ofParliament were shocked by the ‘complacent’attitude to understaffing in the agency, which alsofailed to conduct research into the rising number ofdeaths on the British coastline. A report from theCommons Transport Committee confirmed theproblem after a fatal accident where a search-and-rescue helicopter flew to the wrong destination. Deaths on the coast have dramatically increased by

28.1 per cent between 1998 and 2002. Britain hassome beautiful, if potentially dangerous, rockycoastlines and both visitors and locals often findthemselves in trouble. Human resources must beaddressed if the coastal emergency service isexpected to improve on the current rescue statistics.

Pressure on P&O asfuel prices rise

In a pre-close period statement in advance of theinterim results for the six months to 30 June2004, due to be announced on 12 August, P&Osaid their ferries results are likely to be belowcurrent market expectations. Chris Wales reports

The company added that that their ferry division issuffering from ‘some downward pressure on touristpricing’ and ‘higher fuel costs’. However, P&O

went on to say that the positive trading in ports andRoyal P&O Nedlloyd – the company’s containershipping subsidiary – is offsetting the adverse trendsexperienced by the ferries division. There arerumours in the city that venture capitalists are eyingthe company’s ferry operations.


TRAVELMATTERS 13

A deadly form of bird flu, fatal for humans, hasappeared again in Thailand, China and Vietnam.Thailand's Deputy Agriculture Minister, NewinChitchob, has confirmed that the H5N1 strain hasinfected birds in the Thai province of Ayuthaya andPrathumthani near Bangkok, but sought to calmfears of another widespread epidemic. ‘I don’t thinkthe scale of the outbreak will be as severe as lasttime,’ he said. The Thai government has ordered amass cull of chickens in a five-kilometre radiusaround the affected area. Thailand’s export-oriented chicken industry is still

struggling to recover from the mass bird fluinfection earlier this year, which triggered anationwide cull of tens of millions of poultry to tryand stamp out the virus. Vietnam declared itself free of bird flu three monthsago, but authorities in Hanoi say they are nowtrying to contain another suspected outbreak of thedeadly H5N1 strain.In China, an outbreak of bird flu in the centralprovince of Anhui has been confirmed, worryingsoyabean traders. The case is China’s first since thegovernment declared the country free of bird flu on16 March. All poultry within a three-kilometreradius of the Anhui outbreak have been culled andfowl within five kilometres have been vaccinated. International experts are, however, warning againstpremature declarations of victory with growingevidence to suggest that the virus will persist inAsian birds for years. The WHO is calling for more work to be done todevelop a vaccine, while the US and Europeannations have been stockpiling Tamiflu, an antiviraland the only drug believed effective for people withthe H5N1 strain. Asian countries are alsonegotiating to buy supplies. With extensive testingneeded before a vaccine can be produced, it maytake a while for a cure to be available.

Bird flu is back

In a reportpublished in thejournalEnvironmentalHealth Perspectives,a team of expertshas warned thatwidespread changesin the globallandscape arepromoting dozensof infectiousdiseases likemalaria, denguefever, Lyme disease,yellow fever,cholera, influenza,foot and mouth,and hemorrhagicfevers. ‘Evidence is mounting that deforestation andecosystem changes have implications for thedistribution of many other micro organisms, and thehealth of human, domestic animal and wildlifepopulations,’ says the report compiled by theWorking Group on Land Use Change and DiseaseEmergence – an international group of infectiousdisease and environmental health experts. ‘Many of our current activities, primarily foreconomic development, have some major adversehealth effects,’ Jonathan Patz, the lead author of thereport, and a University of Wisconsin-Madisonprofessor said.A global example is the AIDS virus, which scientiststhink may have first infected bush meat hunters inAfrica and then spread through human contactquickly because the ease of global travelling.According to the report, the list of human activitiescontributing to the spread of infectious disease islong and varied. Even climate change or extremes

can trigger a chain of events that can lead to theemergence of new diseases. For example, thenipah virus in Malaysia and Singapore in 1999 wasdue to fires driving fruit bats from their forest habitatto farms where the virus was transmitted to pigsand humans.The report makes several recommendations toaddress the issue, such as linking land use to publichealth policy, expanding research on deforestationand infectious disease, the development of policiesto reduce ‘pathogen pollution,’ and theestablishment of centres for research and training inecology and health research. ‘While there are many health crises around theworld today, there are ongoing human activities thatthreaten natural resources key to sustaining thehealth of future generations. We need to look atthe root causes of the spread of infectious disease,and many of these are related to habitat andecosystem change,’ Paltz said.

Changes in landscape spread diseases

Recent reports saying northernTurkmenistan (formerly part of the USSR)is facing a potential outbreak of infectiousdiseases are being played down by authorities. ‘The epidemiological situation on Turkmen territoryis favourable,’ the Extraordinary Anti-EpidemicsCommission said in a statement. ‘No cases of anydangerous diseases have been registered.’However, in a press release, the government ofTurkmenistan have said that they will introducepreventative and restrictive measures to avoidpropagation of dangerous and infectious diseases.According to various sources, there have beenisolated cases of anthrax, plague, cholera and other

infectious diseases in Kazakhstan and Uzbekistan.Although the sound of these diseases cause panicbecause of past century outbreaks, they can nowbe treated with the use of antibiotics such astetracycline. Residents of the capital, Ashgabat, have apparentlystopped buying meat and dairy products that havecome from outside the city for fears of contractingthe disease from animals. Bordering countries, Uzbekistan and Kazakhstan,are also to put preventative measures in place.

Outbreak inTurkmenistan

Insurers address theissue of HIVThe Association of British Insurers (ABI) is toestablish an independent multidisciplinary workinggroup of experts and key stakeholders to advise theinsurance industry on policy developments affectingHIV and insurance. The ABI plans to announce thegroup’s membership and terms of reference soon.Two organisations – The Terrence Higgins Trust(THT) and Pinkfinance.com – have so far beeninvited to join the group.Issues likely to be addressed by the group include:the evidence base for HIV risks; changing culturalattitudes and encouraging responsible behaviour;rational and respectful decision-making; and fair riskassessment. The ABI has also published a summary of theresponses to the September 2003 consultationexercise on a new Statement of Best Practice forHIV and insurance and proposed ways forward. Thesummary concludes that there is widespread supportfrom insurance companies and other stakeholdersfor the principles previously put forward by the ABIto update best practice in the insurance industry.These will enable insurers to assess all applicationsfairly on the basis of relevant and accurateinformation without intrusive or inappropriatequestioning. The document also suggests waysforward in areas that were previously open. Richard Walsh, Head of Health at the ABI, said: ‘Theinsurance industry is committed to fairness andtreating people with respect. This consultationexercise is about putting that commitment intopractice. We have had some very useful feedbackfrom member companies and a wide range ofinterested organisations. As a result, we have refinedour proposals and we are inviting comments on oursuggested ways forward. ‘We now feel that it would also be desirable toestablish a permanent way of keeping these issuesunder review and propose to set up an expertworking group to help the industry. We willannounce its membership and terms of referencewhen the updated Statement of Best Practice comesinto force.’Lisa Power, Head of Policy at Terrence Higgins Trust,said: ‘THT, the ABI and other partners have workedhard to improve current practices around HIV riskwith the insurance industry. We are particularly gladthat the ABI has recognised the rapidity of change inthis issue by setting up an on-going advisory group.We hope that members of the insurance industrywill take due notice of this work.’Chris Morgan, Editor of Pinkfinance.com, continued:‘I’m very proud to have been invited to join the newABI working group focused on HIV and self-responsibility. The fact that the ABI wish to form thisgroup and appoint a gay man to consult on suchsensitive issues is a sign that the industry is changingfor the better.’People involved in the insurance industrysee the initiative as a positive step andhope it will enable the industry to caterbetter for those affected with the disease,those who are all too often overlooked.


HEALTHMATTERS14

The Ministry of Health in Kenya has reported 141suspected cases, including six deaths, ofleptospirosis in a high school in the Bungomadistrict of Kenya. A nearby primary school has alsoreported suspected cases and two deaths.Symptoms of leptospirosis include high fever,severe headache, chills, muscle aches, andvomiting, and may include jaundice, red eyes,abdominal pain, diarrhoea, or a rash. If the diseaseis not treated, the patient could develop kidneydamage, meningitis, liver failure, and respiratorydistress. In rare cases, death occurs and many of

these symptoms can bemistaken for otherdiseases. Leptospirosis isconfirmed by laboratorytesting of a blood orurine sample. Outbreaks ofleptospirosis are usuallycaused by exposure towater contaminated withthe urine of infectedanimals. The risk of acquiringleptospirosis can begreatly reduced by notswimming or wading inwater that might becontaminated with

animal urine and the Ministry is asking people whoare exposed to contaminated water to ensure theywear protective clothing and footwear.

Leptospirosis in Kenya

A family of British holidaymakers was made so ill bythe unsanitary conditions at their Tunisian hotel thatboth children suffered permanent kidney damage,with one child requiring dialysis. Holiday giant FirstChoice has admitted liability in the case broughtagainst them by the family and is currentlynegotiating a compensation package.The family’s problems started as soon as theyarrived at the Soviva Hotel in the popular Port ElKantoui in May 2001: the superior room they hadpaid for was unavailable and the alternativeaccommodation they were given was alsounsuitable, due to nearby building work keepingthem awake at night. But this was only thebeginning of their nightmare. ‘From the outset, wesaw that this hotel was really dirty and we shouldn’thave stayed, but this was our big family holiday andwe wanted to enjoy it as best we could,’ saidmother, Julie McDonald. ‘The restaurant was dirty,the food was lukewarm, there were cats walkingon the surfaces of the bar area and the swimmingpool was full of debris from the nearby buildingworks. It is not really surprising that we were all illbecause of these conditions,’ she added. Thewhole family suffered severe stomachcramps diarrhea, but one child, Megan,may never fully recover from thekidney damage the children sustained.National law firm, Irwin Mitchell, whoseinternational travel litigation grouprepresented the family, commented:‘This is one of the most serious caseswe have dealt with. We are also awareof a large number of other guests at thishotel in 2002, who suffered illness andwho are bringing claims for damages.’

First Choice admitsfault

A tourist resort in Australia has been hit by a flesh-eating bug that doctors are warning should beavoided ‘at all cost’. According to The Agenewspaper in Melbourne, health authorities in thearea have so far identified six people affected withthe rare skin condition mycobacterium ulcerans inthe resort of Point Lonsdale.The state of Victoria’s chief health officer, RobertHall, warned that the condition begins as an ‘itchylesion’ that could develop into an ulcer and, if leftuntreated, could result in the need for a skin graft orother surgery. He reportedly added: ‘To avoidinfection, peope should cover exposed skin duringoutdoor activities, avoid insect bites and washexposed areas thoroughly. If anyone has a skin sore,lump or ulcer that is not healing, especially is it ispain-free, they should see a doctor immediately.’

Flesh-eating buginvades resort

The risk of travel-related Deep Vein Thrombosis (DVT)is currently affecting one in 26 flyers and growingevidence shows that all passengers on journeys of fourhours or more can develop the condition.Television stations in the UK will soon be airingadvertisements, produced by Scholl Flight Socks,communicating the benefits of wearingcompression hosiery on flights to help preventblood clots. Keith Betton, Head of CorporateAffairs at the Association of British Travel Agents(ABTA), welcomed the campaign as a step forwardin promoting good holiday health: ‘Far too manypeople throw caution to the wind when jetting offon their holidays ignoring the potential pitfalls totheir health. This new advert shows just howsimple it is to look after your health and helpprevent DVT, which is potentially life threatening,by doing something as simple as wearing flightsocks and exercising your legs during a flight.’ They might not look too pretty, but the benefitssurely outweigh the fashion nightmare!

The safe way totravel: wear socks

The potentially deadly dengue fever disease iscurrently taking its toll on people in Sri Lanka.Dengue fever, an infectious disease carried bymosquitoes, used to be called break-bone feverbecause it sometimes causes severe joint andmuscle pain. Dengue fever is found mostly during and shortlyafter the rainy season in tropical and subtropicalareas of Africa, Southeast Asia, China, India, theMiddle East, the Caribbean, Central and SouthAmerica, Australia and the South and CentralPacific.However, this year, the Sri Lankan governmentfears the disease may be running out of controlwith health authorities reporting 7,000 cases sincethe start of 2004, against 3,500 cases during thewhole of 2003. The outbreak is particularly bad inColombo and Galle – with 50 people having diedalready.Visitors are being told to protect themselves, asmuch as they can, against mosquitoes by using anti-

mosquitosprays anddressing inprotectiveclothing. Thegovernment isalso urgingcitizens to tryto preventmosquitoesfrom breeding.

Sri Lanka warns ofDengue

According to a new report published in the latestissue of the British Medical Journal, tourists aregoing away healthy and coming back with somerather nasty sexually transmittable infections (STIs).As the number of people travelling abroadincreases, so do, it seems, the number of cases ofSTIs.The report, by Karen Rogstad, a consultant in theDepartment of Genito-Urinary Medicine at theRoyal Hallamshire Hospital in Sheffield, highlightsthe fact that sexual encounters on holiday arepotentially dangerous, and young people and sextourists are at risk. According to evidence, many new cases of HIVinfection in the UK were the result ofencounters abroad. A quarter of the UK-born women infected between 2000and 2002, and 69 per cent of themen, were infected abroad: 22per cent of the men wereinfected in Thailand.Her review mentions astudy, which suggests thattour operators whopromote sex by presentingprizes to new sexualpartners were contributingto the explosion of sexualdiseases in the UK. Yetholidaymakers receive littleadvice on how to reduce theirrisk or avoid infection, she says.Only three per cent of travelbrochures include advice on safe sex.One study of holidaymakers in Tenerife showedthat half of those aged 25 or under had sex withsomeone new while on holiday. Among those agedover 25, over one in five (22 per cent) had sexwith someone new.‘The alarming increase in bacterial sexuallytransmitted infections and HIV in the UK, as well as

marked international variation in the prevalence ofSTIs worldwide, including more than 40 millionpeople living with HIV, make any sexual encounterpotentially hazardous ... the risk of STIs due tosexual intercourse on holiday is potentially increasedthrough exposure to new sexual networks, the rateat which partners are changed while away, lack ofcondom use and consumption of alcohol,’ says MsRogstad.The report suggests that screening for gonorrhoea,chlamydia, syphilis, and HIV should be performedwhen people return from a holiday where theyhave had sexual encounters with a new partnerabroad. Chancroid, lymphogranuloma venereum,

and granuloma inguinale should alsobe considered if an individual

has had sex with someonefrom a developing

country.Other

recommendationsnaturally includepreventivemeasures,includinginformation onsafer sex and the

prevalence ofSTIs/HIV in the area

to be visited beinggiven when people

who go for health advicebefore travelling. Ms Rogstad

suggests that a Hepatitis Bvaccination should also be considered for

people at risk who come to the clinic soon aftertheir last intercourse, and for sex tourists. Doctors,who are already taught to take a travel history fromanyone with a fever, should also take a sexual travelhistory from anyone with genital symptoms, rashes,hepatitis or glandular fever-like illness, she says.

Travelling STIs


HEALTHMATTERS 15

Have people become more willing to runthe risks of travelling without cover?Certainly the results of the surveys by bothAXA on purchasing habits in the UK, and asurvey by RBC Insurance on NorthAmerica would certainly appear to indicatesome form of change in the market. The AXA survey estimated that fourmillion Britons out of the 34.8 million whowill travel this year be uninsured. That’s11.5 per cent or one in every 8.5 people.Pat Brady, Head of Travel claims at AXAwas quoted as saying : ‘With cheap flightsto the US and a weak dollar, people aregetting too carried away with the excitement ofplanning a vacation and forgetting to purchaseinsurance,’ but this perhaps belies and oversimplifiesthe situation. Interviews of travellers conducted byourselves here at ITIJ tend to not only reinforce thefigures, but also clarify the reasons.

Ease of movementFor most continental Europeans, the ease withwhich you can move (drive) from one country toanother has always meant there has always been alarge portion of the population who will and have

travelled uninsured. This tends to change whenpeople travel further afield and/or cross-culturalboundaries (real or perceived), however. But, theproliferation of cheap air travel and the emergenceof the EU with its reciprocal healthcarearrangements have lead to anincrease in the confidence ofeven the most conservative oftravellers, and a consequentdecrease in the uptake of travelinsurance for short-stay andshort-haul (EU) destinations.A Dutch national we interviewedwas fairly typical of the generaltrend. He had travelled to Londonby train without insurance; had not

even considered buying it. He saw no need formedical cover, as he felt he could getadequate treatmentin

Recent surveys seem to indicate that the travelling public appear to be showing

a declining interest in purchasing travel insurance (See ITIJ issues 41 & 42). So

is it apathy or ignorance? Should we be worried? Is travel insurance in a

spiralling decline? Will the insurers and underwriters of today’s market be

condemned to the scrap heap in a few years? Ian Cameron chews his nails

‘…the proliferation of cheap air travel andthe emergence of the EU with its reciprocal

healthcare arrangements have lead to anincrease in the confidence of even the most

conservative of travellers…’

Taking Cover


NEWSANALYSIS16

the UK (via the National Health Service). What littlebaggage he was carrying, he assumed was coveredby his house insurance. The same person said itwas ‘highly likely’ that he would purchase travelinsurance if travelling to Italy, Greece or Spain andwould ‘definitely’ purchase insurance if travelling toNorth America, other long-haul destinations, andEastern Europe (even though some of thesecountries are now in the EU).We found this was very typical of the ‘WesternEuropean’ view in general, given obvious variationsbetween Northern and Southern Europe and thevarious countries, peoples and prejudices therein.

US similaritiesThe survey conducted for RBC showed that 66per cent of Americans rarely or never purchasedtravel insurance. In the US, travel insurance hasnever been as widely utilised as in most of the restof the world. In the US, as few as 20 per cent oftravellers buy travel insurance. Most US citizensbuy travel insurance mainly for protection againstcancellation or termination and, if they are coveredby a private health plan, are provided medicalcoverage when traveling overseas – unlikeCanadians and Europeans, whose traditionalnational health systems only cover them in theirown country.This is borne out by our own research. Few of theUS travelers we interviewed carried anything morethan their own healthcare policy. Of the peoplewho had a travel insurance policy, virtually all of thepeople we interviewed had bought it forcancellation and repatriation reasons. In theaftermath of 9/11, there was a rise in excess of 25per cent in the purchase of travelinsurance by US citizens,reflecting a desirenot only

forcancellation risk, but

for repatriation cover:an indication of achange in consumerdemand and even,perhaps, a surprisingawareness of theproduct.More interestingly forinsurers perhaps, isthe 41 per cent of Americans whosaid they had never heard of travel insurance.

Canadian uptakeCanadians, like their European counterparts, alsooperate a national health system and also have a

high uptake on travel insurance: up to 73 per centof travellers take out travel insurance. As a highpercentage of Canadians will travel on vacation tothe US, a major factor in the uptake of insurancehas always been related to the high cost of -– andthe fear of – the need for (i.e. the payment of)medical treatment in the US.People react to major events, and Canadians whohave travelled for leisure in the last three years nowagree that they are more likely to purchase travelinsurance when they travel than they were beforeevents such as the recent terrorist attacks in the US,the war in Iraq, and SARS.

Ups and downsSo, is there a worldwide decline in the sale of travelinsurance? Well yes and no…there is no one clearanswer. The coming together of Europe’s nationstates and the advent of cheap travel within the EUhave brought a large increase in travellers over thelast few years, and many of them now chose totravel with an E111 or without traditional travelinsurance. But that does not necessarily mean thereis a drop in the number of policies sold.For longer trips, and particularly to theUS,

with its well documented high cost ofhealthcare treatment, few travellers of anynationality will risk the hazards of the US systemwithout some form of cover – real or perceived.

As is shown graphically in the US survey, and to alesser degree in the others, there is still a largeblock of people who do not understand whatbenefits a travel insurance policy can bring, over and

above healthcare costs.The increase in theuptake in policies in theUS, post 9/11, is alsoan interesting exampleof how the uptakerate can change by aninclusion – in thiscase of repatriationcosts – in a policy.At the end of theday, travelinsurance offers anunusually broadrange of benefitsand services.Bundledtogether areassistanceservices, suchas worldwideemergency hotline services andmedical evacuation, along withinsurance benefits for

cancelled orinterrupted trips,medical and dentalemergencies, lost ordamaged baggage,travel supplier

bankruptcies and

many other provisions.The strength of travelinsurance lies in its abilityto adapt to the wantsand needs of the moderntraveller. Its growth ordecline will be determinedby the ability of thosewithin the industry to offerpolicies that will satisfy thoseneeds. And there are alsostill markets and travellers yetuntouched or blessed by thetravel insurance product. So, should we all be looking tohang up our small print andexclusion clauses? Not quite yet… but it’s always a good idea tokeep a good nail around to bite!

Our thanks go to Ronn Mullins forhis help with this feature.

‘More interestingly forinsurers perhaps, isthe 41 per cent of

Americans who saidthey had never heardof travel insurance.’

‘…few travellers of anynationality will risk the

hazards of the USsystem without some

form of cover…’


NEWSANALYSIS 17

Outsourcing has become an established way ofreducing costs and maintaining high levels ofcustomer service in a range of industries. SteveHook explains why choosing the right supplier isthe key to a beneficial outsourcing contract

Despite the rise in popularity of outsourcing,between 20 per cent and 25 per cent* of outsourcecontracts are reported to fail in the first 18 months.These figures suggest that companies need to thinkmore strategically about outsourcing, by looking at itas a long-term solution that goes beyond cost cutting.

The benefitsThe need to improve claims handling, telesales,emergency assistance services, or simple advice linesfor customers is becoming increasingly important toinsurers, not only to attract new customers, but alsoto build customer loyalty by enhancing the customerexperience and demonstrating true value for money.However, this creates the dilemma of how to meetthese demands without increasing internal costs. Some insurers choose to develop their own in-house departments, but this can detract from theirmain areas of expertise. Choosing to outsource canenhance a company's focus, quality and service,improve flexibility, reduce costs and minimise risk.But it is essential that insurers choose the rightoutsourcing company for their specific needs. Thisway, non-core business activities can be effectivelyrun by outsourcers that are specialists in servicedelivery, combined with in-depth expertise in themarket relating to the client.It should also be noted that outsourcing providerswho have the ability to work on a global scale bringsnumerous advantages, notably a common approachto service standards and the ability to trade acrossgeographic borders. For example, a companylooking to expand their travel offering on a globalcapacity would benefit from working with acompany with a worldwide presence, helping themto provide a consistent level of service around theglobe, cost effectively.

The secret to successful outsourcingThe key to making outsourcing effective is to base iton a mutually beneficial relationship, whereby bothprovider and client have clearly defined, sharedobjectives. These can be anything from reducingcosts, to providing access to new technology orbringing more efficiency and value added service.If both parties do not share the same objectives,because the goals being reached by both parties arecompeting, eventually, the relationship can collapse.

This highlights the need to clearly identify the servicerequirements, by implementing careful planning andfinally selecting the right supplier for the job. Forexample, by outsourcing assistance services, insurerscan take the opportunity to continue to 'add value'and profit opportunities to their service offerings. Butthe key to success is to ensure their objectives arecontinually reviewed throughout a partnershiprelationship. And a major deciding factor should bethe ability of the provider to act and behave as anintegral partner in any new product launch, assistingand working with insurer or intermediary topromote, and yet protect, each other's position.It is essential to establish a shortlist of reasons forselecting an outsource provider – whether it iscutting costs, enhancing customer service or cuttingstaff. Once the list has been made, businesses shouldensure they find a provider to match theirrequirements and not the other way around. It is alsoimportant to define roles and responsibilities to avoidconfusion and make the most of the relationship.Managers responsible for outsourcing projects shouldtake all these aspects into account to minimisedisruption and maximise the benefits to the business.Change management is another crucial part of theoutsourcing process. This can be handled throughcommunication with staff to ensure the organisationsupports the business initiative and helps the processbecome a success. Make sure employees are awareof the decision to select an outside provider andunderstand the reasons. This is especially importantfor employees whose positions may be at risk andshould be done before a provider has been chosen.Getting the transition right is as important aschoosing the right provider. The key is to movecontrol of processes and people from internal toexternal management. Make sure your provider iswilling to offer advice and expertise on the transitionprocess, whether it is the movement of people ortasks and processes. Outsourcing managers shouldensure that their provider is ready and preparedbefore signing over accountability to them. This mayinvolve job shadowing or a handover period toensure they are working with the agreedspecifications in mind. From this point on, theoutsource provider should be working in partnershipwith the business to cultivate a strong workingrelationship that benefits both parties.

Brand supportInsurers looking to outsource areas of their businessshould ensure that they choose a provider willing toprotect and enhance their brand. Within thepersonal lines arena, there has been a need to

provide centric-based solutions thatallow insurers to provide acomplete range of insuranceservices to their affinity customersthrough corporate businesspartnerships. These businesspartnerships can remove the needfor multiple relationships andenhance the overall offeringthrough comprehensive brandsupport. The strength of a brand isa key influence on the decision-making process and, as such, it iscrucial to find a provider that canprovide tailored products that donot offer competition.

Reaping the benefitsThrough careful management andplanning, insurers can enjoyrewards such as increased revenueat little or reduced risk andenhanced management focusthrough the cultivation of asuccessful outsourcing partnership.With increasing demands on

resources, outsourcing presentsorganisations with theopportunity to concentrate onrevenue generating and corebusiness projects. Outsourcingcan also reduce costs associatedwith cash management andallow some or all functions tobe moved off-site to purpose-built facilities.In order to get the best out ofan outsourcing provider, it isimportant to get to know yourclient manager. They will be thesingle point of contact and willensure changes are madequickly and efficiently. Workingwith a business’s ownoutsourcing manager, theyshould resolve issues quicklyand in the most appropriateway. Make sure they are seniorenough to be able to make keydecisions to ensure the service

Successful outsourcing


FEATURE18

works effectively and with the minimum of delayswaiting for more senior decision-makers. The clientmanager should be a key issue during the selectionprocess as they will be the day-to-day face of thechosen provider and should share a business’s aimsand objectives as well as their approach to areassuch as customer service.A good outsourcing partner will continue to invest inthe latest technology and software in an effort toensure that they can support their client's businessneeds on an ongoing basis. This enables insurers toshare both the development and maintenance costswithout having to invest wholly themselves. It is important to remain realistic about the resultsoutsourcing will provide. Remember, it won’t solveall of a business’s problems, but it will allow moretime to understand the needs of the organisation.With the extra time and understanding, organisationswill be able to implement more effective strategiesto move the business forward. Ifthe right choice is made, theselected provider will have moreresources and access to the besttechnology and processes tosupport a business’s newobjectives. The most successfulpartnership will involve anoutsource provider that is flexibleenough to provide a service thatcan be tailored to the changingneeds of businesses as theyexpand and develop.A successful outsourcingprogramme is dependent oncultivating a long-termpartnership. If outsourcing is usedas a cheap short-term solution,the long term benefits are lost.However, correctly implementedoutsourcing has a host of long-term advantages for insurers in ahighly competitive market place.

*figures from Dunn and Bradstreetreport 2003

A quick guide to outsourcing

• Identify problems and their solutions. Lack ofexpertise or management time to implementsolutions could be solved by outsourcing.

• Evaluate external services and suppliers bytalking to reputable outsource service providers.

• Identify the areas to be outsourced anddefine clear, realistic objectives.

• Before choosing a partner, research currentcustomers and ask for feedback on consistencyof performance and strength of relationships.

• Be sure to explain the changes to staff andhighlight the benefits to them and thebusiness, to help them adjust.

• Whilst considering which provider to choose,be sure to check that the provider is willing toprotect and enhance the brand.

• Maintain an open channel of communicationbetween the organisation and the outsourceprovider to ensure the service develops andmoves with the changing needs of the business.

• Identify a provider who is flexible enough tochange products or services and grow withthe business.


FEATURE 19

One of the most dauntingaspects for most air travellersnowadays is getting to and fromairports and actually getting tothe point where one is sitting inan aircraft. As if this wasn’thassle enough, the problem oflost luggage is becoming moreand more prominent. RobertBailey asks why

Travellers’ tempers can also befrayed dealing with whatsometimes appear ludicroussecurity regulations.Inconsistencies were graphicallyhighlighted by the recentexperience of a family withtwo-year-old twins at Charlesde Gaulle airport. Theirchildren’s Peter Pan toy plasticswords were confiscated byofficials who classified them asreplica weapons. They thenwent through customs todiscover shops selling die-cast11 inch Eiffel Tower replicaseach with characteristic spikeddesigns as well as copiousamounts of alcohol.By far the biggest and most oftenvoiced passenger grumble,though, concerns baggagehandling. Damage to luggage isone of the main causes of concernto air passengers, accounting for more than one fifthof all complaints made to the Air Transport UsersCouncil (AUC) and up 50 per cent in the last year.

Not so secureIncreased security measures post-September 11have slowed up baggage processing, causing luggageto miss flights and often disappear altogether.Virtually anyone travelling by air sooner or later mayfind their suitcase has flown off in one direction –heading for New York instead of Toronto, Singaporeinstead of Moscow – they in another. Its coldcomfort to those affected that their belongings areusually traced and returned inside 24 hours: ifproperty is indeed lost the claim process is tediouswith airlines insisting that a suitcase’s contents areitemised with details of when and where they were

purchased and for how much.The world’s increasingly crowded skies suggest thatthe proportion of luggage delayed will increase. Inthe US alone, delayed luggage reports have risen10 per cent in the last year. In the UK, complaintsover mishandled luggage – most of which weredelayed – soared by more than 50 per cent in2004 and constitute by far the greatest source ofpassenger dissatisfaction with airlines, according tothe AUC.The Association of British Insurers (ABI) says that ofabout half a million travel-related insurance claims in2002-2003, about 130,000 concerned lost ordamaged luggage, with claims totalling £18 million –the third highest total behind claims for medicalexpenses and cancellations. Worldwide the figure ismany times this amount.

Worrying statsJust how big a problem baggage mishandling isbecoming is shown by figures from the Associationof European Airlines (AEU). These show thatbetween January and May this year, AEU membersregistered some 1.7 million pieces of luggage asmissing. While 85 per cent of these missing bagswere traced and delivered to their owners within48 hours, that still leaves an awful lot of lost luggage. The figures from the AEU, whose members includeleading carriers such as British Airways (BA), AirFrance, Lufthansa, Alitalia, Iberia and KLM, show thelarger carriers as having the most dismal record.British Airways and KLM are among the worseperformers with ratios of 24.1 per cent and 26.1per cent respectively. The best performer of its

members is Turkish Airlines,with just four out of every1,000 bags lost or delayed. In fairness, though, it has to bepointed out that manypassengers transfer to biggerairlines from smaller carriersand the final carrier in apassenger’s journey is boundto take a mishandled baggagereport irrespective of whoactually caused the problem. The dilemma for major airlinesis that they are responsible fortheir passengers’ luggage intransit, but are usually obligedto use a local airport’s baggagehandlers.Also, if a flight was aconnection involving twocarriers, the final carrier isnormally the one responsiblefor processing your claim evenif it appears that the first airlinelost the bag.

Knowthe factsA cool head is neededwhen things go wrong.Unfortunately, a tired,frustrated and angry

Bags of troubleLost luggage: an increasing problem


FEATURE20

passenger is unlikely to be in a frame of mind tocarry out the procedures aimed at helping airlinesand insurers consider claims. And, belongings arenot officially deemed to be lost until 21 days haveelapsed without their return. Once luggage isdeclared lost, passengers usually have seven days tosubmit a claim.Passengers are often ignorant of the need to reportdamaged or missing baggage before departing thebaggage hall where a property irregularity report(PIR) needs to be filled in, describing the missingbag and to where it should be delivered. A copy ofthe PIR is needed by anyone subsequently wantingto claim on insurance policies since it comprisesmerely a record of loss rather than a claim form.Airlines will use the information on a claim form toestimate the value of lost belongings. Like insurancecompanies, airlines consider the depreciated valueof possessions, not their original price orreplacement cost.If a suitcase arrives smashed or ripped, an airlinewill usually pay for repairs. If it can’t be repaired,they will negotiate a settlement to pay for itsdepreciated value. But carriers may refuse tocompensate for damage to items inside a piece ofluggage that is itself undamaged unless packed inoriginal factory sealed cartons or a container packedwith protective cladding material.

Essential insuranceAdequate travel insurance is essential for peace ofmind, particularly since airlines accept noresponsibility for valuables or money contained inchecked-in luggage. Some recommend at least£1,500 baggage cover though there is usually asingle item upper limit of about £250 and an excessof £50 with standard policies. Some insurers alsowill not accept liability while luggage is in the care ofan airline.When it comes to claiming compensation, obtaininga satisfactory outcome oftenresults from persistence asmuch asreading the

smallprint.BA says

it looks atevery incident on a ‘case by case’

basis, but admits it’s a grey area.Airlines will not usually accept claims

for delayed luggage and typically willonly pay for out-of-pocket expenses

accompanied by receipts, not for inconvenience.Who you travel with and what class, does make adifference, however. Low-cost carrier Ryanair willpay £15 for delayed luggage and Easyjet £25, whileSAS is said to offer £60 a day for economypassengers and double that for business class.For those with travel insurance, the moststraightforward way to proceed is to claim from theinsurer, which in turn will claim from the airline. Asecond option is to claim money directly from theairline and then claim the shortfall from the insurer. Until recently, the amounts of compensationavailable have been almost derisory, based purelyon the weight of baggage of about £15-a-kilo,irrespective of the contents. Since the maximumweight allowed on most economy flights is 44 lb,the most compensation for lost bags has been setuntil recently at £300. These days, the price of areasonable piece of luggage alone could easilyexceed that amount.The cost guidelines set by the Warsaw Conventionin 1929, which have governed internationalaviation’s obligations to passengers for the last 75years, have now been superseded by the newly-ratified Montreal Convention. Now payouts will be

related to the value of goods up to £800.The Warsaw Convention allowed compensationonly up to 17 special drawing rights per kilo (SDRs),an international monetary unit, administered by theInternational Monetary Fund. The MontrealConvention, which succeeds the old WarsawConvention, offers up to 1,000 SDRs (about £800)per passenger, but only for luggage lost on flightsbetween signatory countries.

PrecautionsJames Freemantle, industry affairs advisor at theUK’s Air Transport Users Council, has expressedconcerns, though, about airlines willingness to payup. ‘Airlines are likely to want to have proof ofpurchase of items or bags that have been lost orstolen. This is going to cause arguments betweenpassengers and airlines. Travellers may retainreceipts for valuable items having guarantees or forluggage itself, but are unlikely to have receipts forclothing and everyday items contained in baggage.’But while airlines may try to suggest they are notliable for valuable items, the legislation makes noexceptions; therefore, they are probably liable forsuch items as cameras unless passengers agree anundertaking not to hold the carrier responsible. Itseems an unlikely scenario and if a dispute doesarise, the airline could well be in contravention ofthe convention.If any settlement doesn’t fully reimburse a loss,passengers may find they are covered byhomeowner’s insurance that sometimes coverslosses away from a residence. Some credit cardcompanies and travel agencies also offer optional oreven automatic supplemental baggage coverage.Nevertheless, a few simple precautions can serveto avoid the hassle. Making sure the suitcase has anidentity tag with a name address and telephonenumber can be a huge help. Passengers should alsopay attention to the tags that the agent places ontheir bags

when they

check them in. They should checkthat it’s their name on the tag and thatthe three-letter city code printed in

bold is indeed the code for theirdestination.Passengers should also arrive at an airport in goodtime. It’s all pretty basic stuff, though oftenoverlooked by an ‘it only happens to others’attitude. One of the main causes of lost luggage isthat baggage does not get to the aircraft in time tobe put in the hold. It’s also helpful to book directflights, where possible, and so avoid baggage beingtransferred from one flight to another. If this cannotbe avoided, the advice is to look for connections ofone hour or more on domestic flights and twohours plus for international flights. A shortconnection can create major problems. Even if yourflight is just a few minutes late, luggage transferredcould miss its connecting flight.

Delayed, not lostSome ask with good reason just how there can beso many reports of lost luggage at a time wherematching passengers and bags has become a globalsecurity obsession. In a perfect world, of course,airlines and insurers alike would prefer if everybodycould be persuaded to travel without any luggageat all. But if the worse happens, it is worth rememberingthat most baggage is not really lost but merelydelayed or been placed on the wrong flight andeasily recoverable in all but a small percentage ofcases. A German traveller was reunited with hissuitcase this year, 25 years after it has disappearedon a flight from Senegal and was uncoveredgathering dust in the storeroom of a Düsseldorfpolice station!


FEATURE 21

While membership of theEuropean Union may raisepolitical temperatures in the UK,it would seem to have a soothinginfluence when applied elsewhere– for instance, to Slovenia, one ofthe new entrants which joined inMay and is now in the `waiting-room' for the single currency.William Raynor contemplates thefuture of this country’s travelinsurance market

On the scale of risk, says NicolaHudson of Control Risks, theLondon-based corporate securityand investigation company,Slovenia barely registers. `Having gonethrough the EU process, it's stable politically,its business environment is good, itsinfrastructure is highly developed and it'srelatively free of crime. In terms of security, werate its risk as low, and in terms of travel, asinsignificant. There aren't many places ofwhich one can say the same.' This view is underlined by the UK’s Foreign &Commonwealth Office (FCO) – which,though updating its travel advice to record a`powerful earthquake' that hit the west of thecountry in mid-July, notes that `the vastmajority of visits to Slovenia are trouble-free'. On such a favourable tide of opinion, Sloveniacan now swim in the mainstream,unthreatened by excess insurance premiums orexclusions, or special directives from the major

underwriters. And, in spite of the FCO'sreminder that a completed E111 form is nosubstitute for comprehensive travel insurance,it is now reciprocally bound as a fellow EUmember to provide medical treatment foranyone visiting it from the member states.

European unionPerched between Austria to the north,Hungary to the east, Croatia to the south, andItaly and a short stretch of Adriatic Sea to thewest, Slovenia is, as the FCO confirms, ànincreasingly popular tourist destination.'During the first five months of 2004, 57,000Britons stayed there – 40 per cent up on thesame period in 2003, but the overall rise in thenumber of foreign visitors was only 8 per cent. Being a relatively small country, with a

population of 1.9million and a capital,Ljubljana, of 330,000people, it is too smallever to become amagnet for masspackage travel. Assuch, according tothe Lonely Planettravel guide, it`remains a wonderfulantidote to much ofEurope's crowds andhigh prices.' Also, far as it hascome in its 13 yearsof independence, and

comparatively democratic and tranquil as itnow may be, Slovenia has not completelyshaken off the memories – or the economicconsequences – of its recent history as a player,albeit peripheral, in the bloody aftermath ofthe break-up of the former Yugoslavia, ofwhich it was one of the federal republics.Yet, because it is the first of these to qualify,the place it is taking in the new Europe couldwell prove rather more important than itsgeography might otherwise suggest. Fortourism, foreign investment and businesstravel within its own borders, some of thebenefits are as yet difficult to quantify, butalready evident.Ùntil this year,' says John Warner, of theSlovenian Tourist Office in the UK, `weregularly had calls from people who liked what

they heard about Slovenia, but were stillworried about possible dangers stemming fromthe Balkan conflicts of the '90s – even thoughthe country was technically at war for no morethan a few days, and was never invaded by theYugoslav army. I've not taken a call of this sortfor several months, which I put down to thepublicity surrounding the country's accessionto the EU. `For the same reason,' he adds, ànd perhapsalso because of EasyJet's new scheduled dailyservice from Stansted to Ljubljana, enquiriesabout holidays there have gone up quitehappily by 150 per cent.' Having one large coastal resort – Portoroz –and few of the facilities to attract them, thesorts of people showing interest are, heemphasises, `most definitely not those whowant to lie on the beach or go clubbing.' Divided 50-50 between the young and not-so-young, they are predominantly well-off,seeking good-quality accommodation andvalue-for-money, and keen to combine culturalpursuits with walking in the mountains andlooking at spectacular scenery. Avoiding touroperators and travel agents, many of thembook their flights and hotels independently,and some are beginning to mix holidayrelaxation with business opportunity.

TravellersStarting from a base of zero in 1991, certainSlovenian national statistics can seem double-edged. For instance, from EU members –mainly German, Austrian and Italian – during

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WORLDMARKETS22

Slovenia

the past five years, the Ministry of Justice hasreceived 200 applications wishing to buyproperty. Compared with other Mediterraneancountries, this may seem miniscule, but couldherald a shift in the travel market.Employing more than 50,000 people andcontributing £1.1 billion, or almost 10 percent of GDP, tourism has a vital and growingpart to play in Slovenian prosperity. But formuch of the past decade, and thanks largely towhat the national tourist board calls ùnstablepolitical relations in our vicinity', the sectorhas èxperienced relative business anddevelopment stagnation'. Boosted by fears of long-haul flights since 9/11and of the exotic Far East after the Balibombing and the outbreak of SARS, thesector's prospects began to improve two yearsago and are now about to improve again. `With EU membership, we might have abetter image among people wanting to visitus,' says Janez Sirse, President of the

Association of Slovenian Travel Agents and aformer Minister of Tourism, ànd we are nowstepping into a new cycle of intenseinvestment, with Slovene and Europeanstructural funds in support. Either at the coastor in the spa region inland, the first projectsdesigned to enlarge our capacity and helpsmaller entrepreneurs and family businesseshave already been selected.'Until this new accommodation is available, heexpects no great change from last year, whenSlovenia was host to 1.5 million foreign òver-nighters', and a further 3 million day-trippers,mostly Italian and Austrian, of whom perhapsmany went to gamble in casinos.

InsuranceSimilarly, figures published by the SlovenianInsurance Association (SIA) show impressiveyear-on-year rises in non-life premiums andclaims of 280 per cent from 1991 to 1992 andmore than 100 per cent annually until 2002,

Tel: +254-20-600090/ 600552/ 315454/ 315455/ 602492Fax: +254-20-336886 Mobile: +254-733-639-088, +254-722-314-239

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email: [email protected]


WORLDMARKETS 23


WORLDMARKETS24

when the combined total reached 308 billiontolars – still below £1 billion. The market for insurance is limited, however –the SIA itself has just 16 members – and theeconomy whose activity it reflects still has a lot

of catching up to do.For foreigners, the mostcommon sorts of claim aremotor accident and illness.Among the latter are casesinvolving tick-borneencephalitis, liable to afflictthose who fail to getimmunised before visiting theforested half of the countryduring summer. Among theformer, says Mr Sirse, `manyresult from constructionworks on our big new roads'.In 2002, six members of theSIA's Green Card Bureauprocessed more than 2,200claims involving foreign-

registered vehicles. Of these,more than half were Italian,Austrian, German andBosnian.For the Slovenian travel andtravel insurance trades,according to one insider,`things are easier now becauseof the EU, and moreconnected. We have betteropportunities and relations aregood with the formerYugoslav republics.' In terms of regulation, EUmembership has so far notmade much difference, saysMr Sirse. Àll our legislationand rules had been adapted

some time before to fit EU criteria. As far asour travel agents are concerned, and thearrangements they make with the insurancecompanies to provide Slovenes travellingabroad with insurance, there's only one new

element – a guaranteefund to provideagainst problems likeinsolvency andbroken contracts.' But in the both theinsurance and travelsectors, he detectssigns of impendingstructural change.`Some of the localand smallercompanies,` he says,àre feeling thepressure of beingabsorbed into thebroader Europeanmarket, if only

because the bigger companieswill be able to have biggerinfluence and better access.' On the insurance side, atleast two of the multi-nationals – Generale andGrave – have established aSlovenian presence, andothers are waiting to move in,although some of the nationalcompanies – like Triglav,which claims more than 50per cent market share –remain strong.

Future trendsHow this will alter the travelinsurance market

in Slovenia MrSirse does notpredict; either onpassports or identitydocuments, most Slovenesalready travel abroad, half ofthem to Croatia alone; and asthe 35-40 per cent differentialbetween their own andaverage EU incomes isreduced, even more of themcan be expected to do so. Of those already goingabroad, he estimates thatperhaps 40 per cent travel onpackages with insurancepolicies included; and thatwith or without taking outinsurance, most commonlyfor single trips for which 10-day cover costs on averagebetween £7 and £14, as manyas 20 per cent are bookingtheir tickets through theInternet. Òf course,' he says,`Slovenes tend to complainthat what they have beenpromised in the insuranceliterature does not match upto what they get when theymake claims against loss oftheir luggage or their journeysbeing cancelled. But in mostcases, like everywhere else,this is because they don'tbother to read the small printbeforehand.'Or, he admits, because hisassociation and its membershave not done enough to

promote the message that travelinsurance is necessary andaffordable. `We do advertise itourselves, but as so many peoplestill organise their own trips,perhaps we should start doingmore to get the message across.'

‘Things are easier now because of the EU, and more connected. We have better opportunities and

relations are good with the former Yugoslav republics.’

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When you look at Brian Weisz’s business card asPresident of Air Ambulance Professionals in FortLauderdale, you will notice that it bears the ratherpleasing slogan, given its association withaeroplanes, ‘Caring at a higher level’. Ah, youthink, here is a man who has obviously hadsomething to do with marketing at some point inhis life, and you’d be right… Anne Johnson lookedback over his life with him at last year’s ITIC inRome

Brian is an old-timer at ITIC – his first was in Paris in1999 – where he always enjoys the opportunity ofmeeting with other people in the business andchewing the fat over with them. ‘I learn a lot from the people I meet,’ he says. ‘I likethat and, if I learn just one thing, I always feel that itwas worthwhile.’That probably says much more about the man andhis open, receptive attitude to life – and to business– than it does about anything else, and it probablygoes a long way towards explaining the secret of hisundoubted success.

Looking for challengeBrian’s first exposure to medicine was as an orderlyin a hospital in 1973, where he became arespiratory therapist. But it wasn’t long before itoccurred to him that this could hardly be describedas the most exciting job in the world and that whathe needed was something rather more challenging. And it was then, as if on cue, that he noticed anadvertisement in a magazine for a flight paramedic,and he thought that this sounded just his sort ofthing. So there was a lot about ‘the right place andthe right time’ stuff in Brian’s early career choices,and he became a fireman in 1979 and flew for acompany in Miami for 12 years. And then, as if bymagic, he was also asked to become involved in the

marketing side of the business. There, I knew it, I thought… a marketing manthrough and through.So there he was, the original all-round man –fireman, flight paramedic and marketeer. Whatbetter combination of skills could there be as abackground to starting his owncompany, and this was theway his thinkingwent. But thenhe hit on asnag – hehad a‘no

compete’clause in hisjob. It was only a minorhiccough, though, not aterminal interruption, but he had towait 18 months before he was able to go thewhole hog – and by the time that the ‘no compete’proviso had run out, he was well on his way.

Taking stockThat was a while ago now – 15 years ago lastDecember, to be precise – and he hasn’t lookedback since. Actually, to be rather more accurate andmore exact, he looks back regularly on this part ofhis life and always with some rather large degree ofsurprise, as if he can’t quite believe how far he hascome. I am prepared to bet a million dollars,actually, that this is the first thing he thinks everysingle morning when he wakes up, and I can’tblame him for a moment. ‘I would never have thought that I’d be the ownerof my own company,’ he says proudly, smiling thatdiffident smile of a man who is so obviously

delighted, daily, if not hourly, by what he hasachieved. ‘Life has been good to me,’ he says, and Iwanted to slap him on the back and say, ‘No, lifewas not good to you, Brian – you did it yourself. It’sall down to you – everything. Well done!’Originally from New York and raised as a Catholic,

Brian had no idea as a boy what hewanted to be when he grew

up. ‘I had no clue,’ hesays with that

rather timoroussmile again.

He wasready

for lifeto

throwwhatever

it chose athim. But

equally, he wasready to throw it back

when necessary, and that iswhat he always did.

Because he’s good at sports – softball, basketball,skiing, running, hiking, diving – so he is very familiarwhat to do when a ball comes his way. Catch it andrun… Or throw it back – hard.‘I’ve worked really hard for what I’ve gotand I still work hard to keep it.’None of it has been easy, and he is notresting on his laurels, even now. ‘It’s a verycompetitive business, and I have to concentrate onkeeping our name constantly out there. We get afair amount of business, but my ambition is alwaysto move forward and to be ever more successful.’

A family manWork has clearly been important to Brian, and he isproud of what he has achieved. But it’s not themost important thing in his life – it’s just what hasput the food on the table, the butter on the bread,

the roof over their heads and the kids throughschool. And that has been important to him, too.Because the most important thing in his life is hisfamily. Ask him about the truly significant days in hislife and the message comes across loud and crystalclear. The best day? When my first son was born. And theworst? When my father died. That paints a loud, stark,black and white picture of a man for whom his familyis the be-all and end-all of his very existence. Tell mewho my family is and I’ll tell you who I am. Tell mehow they are and I’ll tell you how I am. That’s really nice. It’s a simple, straightforward,warm, honest, no messing about picture, and hisfamily are lucky to have him. Extraordinarily lucky…Because Brian is one of the original New Men – forwhom nothing matters more than the health,happiness and well-being of his nearest and dearest.He has been happily married for 22 years to Debra,whom he met in the hospital where she was chargenurse, and they have two sons, Douglas at collegeand Nick who is still in his teens. Debra now works with Brian – has done for thepast four years or so – and this is obviously apartnership that works on several levels. Shehandles the quality assurance liaison between themedical director and the employees, and it worksfor them.Ask Brian what he really enjoys in life and he will tellyou that there is nothing he likes more thanwatching his sons enjoy themselves. So it’s not hisenjoyment that really matters to him, it’s his boys’enjoyment. And gosh – that takes some doing, butthere is not an ounce of selfishness in him! Noteven the tinsiest smidgen.

What makes him tick

The front people at Air Ambulance Professionals arewhat make the company tick. There are nurses,physicians, paramedics and pilots. Some are full-time, some are part-time.But, what makes Brian tick? He enjoys the contactwith his clients, and he knows that a lot of peoplelike the fact that they are dealing directly with theowner. ‘I have had sales people, but mostly I do itmyself. I spend a lot of time on the road, but I get alot accomplished. Everything comes down to thedollar, in the end – we’re not the cheapest, butwe’re not the most expensive, either – but it’s alsothe service.’He travels a lot for business, mostly in theCaribbean between Bermuda and Trinidad and allthe islands in between, and he believes that thesecret of his success has been, to a large extent,down to personal contact.But has Brian never been tempted to fly himself?That would have been an obvious conclusion,wouldn’t it?‘No, it’s not the glamorous side of the job thatappeals to me,’ he replies – and anyway, you justknow that, deep down, he would much rather beat home with his wife, his sons and all the animalsthat they keep in their beautiful lakeside house. It’sactually his wife who is the animal person in thefamily, and there are lots of them: an English mastiffcalled Lucy who weighs 145lb and has the head ofa cow; a golden Labrador called Jake; and two cats,a Russian blue called Natasha; and a mutz calledSanibel. This must be a good place to be one oftheir animals, I think – better than a lot of people’shomes are for them.The house must feel really busy with all thoseanimals and children, doesn’t it, I ask? Doesn’t it getrather chaotic? ‘Up to a point,’ he says wrily. And he smiles.But you like it, don’t you, I say?‘Up to a point,’ he says, and he smiles again.

The quiet American

‘my ambition is alwaysto move forward and

to be ever moresuccessful.’

‘Life has been good to me’


PROFILE26

Sometimes psychological problems are pre-existing, buton other occasions they arise out of the incident thatprompted the call. One case in the latter categoryinvolves a recent accident where a husband and wifewere taking a ‘once in a lifetime’ holiday to the FrenchRivera and Aix en Provence.The wife’s injuries from afall caused by a broken door at a local restaurantabruptly terminated their trip, and forced the injuredwife into a long and difficult recuperation period,exacerbated by depression which required psychiatrictreatment.We are attempting to negotiate a settlementon her behalf.Sometimes, the caller’s mental health problems are thereason for the initial contact with the assistancecompany, which then involves us. One memorable caseinvolved an insured expat working in Siberia. His co-workers reported that he started going to work at nightrather than during the day, and that he was exhibitingother peculiar behavior.At first, his supervisor thoughtthat the early winter24-hour darknessmight have causedhis confusion.Theinsured’s hostility,acting out, andagitation continuedto increase,culminating with hisintentionally crashinga tractor into abuilding and trying todestroy both.The assistancecompany called us to inquire about Russian laws whichmight prevent the patient from being physicallyrestrained on the private flight they had arranged.Therewere, in fact, laws which prohibited the use of restraintswhile in Russian territory. Therefore, the only legallyavailable and effective way of preventing the patientfrom acting out during the transport was by medication,which was successfully administered.Once the patient was stabilized at a hospital in Helsinki,Finland, the next issue was how to have him travelsafely on a commercial trans-Atlantic flight withoutendangering the other passengers and crew. Ourpsychiatric consultant determined that the patientwould most likely act out unless he took his medication.To ensure everyone’s safety, the escort had to makeabsolutely certain that this was accomplished, and thatthe patient did not drink alcohol onboard – a difficulttask.The repatriation occurred without significantincident.Another memorable case involved an insuredhospitalized in Miami and apparently suffering fromseizures. The treating physicians initially felt that theseizures were fake, and so they administered a placebo,telling the patient that the pills would induce a seizurewithin five minutes. She quickly exhibited the symptoms,but a further EEG confirmed the prior test results andshowed no brainwave activity to support a seizure.Her travel insurance covered medical treatment, but notpsychiatric services, so the hospital discharged her,despite the patient’s loud threats and warnings that shewould sue them. I recommended that the assistancecompany agree to reimburse her for the ticket home,but that they absolutely avoid making any of her travelarrangements. Her fiancé, who was with her at thehospital, purchased airline tickets for both of them.

About three hours later, the assistance companyreceived notice that on its route north, the planecarrying the insured was diverted over North Carolinawhen the insured had another fake seizure.A doctoronboard, unfamiliar with her medical history, decidedthat immediate treatment was necessary and the pilotmade an unscheduled stop in Charlotte.A British air official at an ITIC Conference had previouslystated that such diversions cost the airlines about$1,000/minute.At this rate, the diversion in this casecould easily have cost $100,000. Had the assistancecompany arranged for the patient’s transportation home,it could have become responsible for the added cost.Another recent call involved a woman who was takento a local hospital from a cruise ship after she exhibitedbizarre behavior. This woman also threatened to sue thedoctors, the hospital and the cruise ship for ‘imprisoning’her. Unlike the ‘seizure’ woman, this person did notwant to remain in the hospital, but remained there until

medicationbrought heraberrantbehavior undercontrol.During thecourse of anumber of ourhotline callsinvolving arrestsfor criminalbehavior,documentationand

substantiation of psychological problems has beenhelpful in obtaining a better result, including shorterprison sentences and even the dropping of criminalcharges. In certain types of serious cases. such as drugsmuggling, it often has no effect, however.Perhaps my favorite case involves the man arrested atBangkok Airport in Thailand. He was trying to returnquickly to the US after learning that his father hadsuffered a heart attack. Frustrated by long lines anddelays, he ripped up his remaining Thai bhats (togetherworth about $2 US) and was immediately arrested andcharged with a serious felony, typically carrying afifteen-year prison sentence.The bhat has a picture ofthe King, thus destruction of a bhat constitutes a clearviolation of the law which penalizes disrespect of theRoyal family.Quick work with our network’s Thai lawyer resulted in acell phone call between the prisoner in the local Thai jailand a forensic psychologist in Philadelphia.After threesuch phone sessions, a meeting with the defendant’sfamily, and a review of his past treatment records, thetranslated psychological report was sent to the Thaipolice psychiatrist, who adopted most of the findings,resulting in a dismissal of all the charges. Noteworthywere old treatment records which revealed that whenthe defendant was an adolescent he had been referredto counseling after he ripped up his parents’ moneywhile he was angry.Over the years, some of our most interesting calls haveinvolved psychiatric or psychological problems, andbehavior resulting from such conditions and we havebeen fortunate in being able to marshal resources forthese hotline callers.We do not like to think of whathappens to those without access to such assistance.

Fortunately, insureds with overt psychological

problems do not call for legal advice on a daily basis.

Dick Atkins, Philadelphia US lawyer and specialist in

travel insurance-related legal matters, looks at these

often complicated and often bizarre cases

The psychologicalviewpoint

destinations grew by over 15 per cent in the year todate, with growth rates reaching often over 100 percent during April on the negative figures of last year.

Americas Destinations in the Caribbean, Central and SouthAmerica kept their very positive performance, andNorth America's figures continue to improve. US inbound figures during the first four months of2004 are positive for the first time since 2001,though still far from the volume achieved then.Particularly good results were obtained in the majorneighbouring source markets of Canada andMexico, but also in the long-haul markets of Asiaand Europe with the continuing good performanceof the UK.

Middle East Most destinations in the Middle East had a buoyantwinter and spring season after an already overallstrong 2003. Intraregional tourism continues to thrive,partly fuelled by the reluctance felt for travelling toother regions, but above all by the improvements intourism supply on offer locally and the increasinglyprofessional marketing and promotion by the

destinations of the region. Available data showsincreases of 10 per cent in Jordan (January-February)and of more than 10 per cent in Dubai (first quarter).In Egypt, the enduring devaluation of the Egyptianpound contributed to the year-to-year growth ofover 70 per cent in tourist arrivals up to May.

Africa In North Africa, the alleviation of the geopoliticaltension over the war in Iraq and the favourableexchange rates of the euro and the British pound havecontributed to improving results. Arrivals to Tunisiagrew by 20 per cent. Morocco saw arrivals growing byalmost 20 per cent over an already positive first quarterof 2003. Interregional travel to Southern Africa, on theother hand, has weakened, as the stronger Randerodes the competitive price advantage.

World's Top Tourism Destinations 2003 The top positions in terms of tourist arrivals, as wellas in terms of tourism receipts, remain unchangedfrom last year, with France and the US asunchallenged leaders. In the ranking of International Tourist Arrivals, themost significant modification is experienced by

Canada, moving from the seventhto the tenth position as a result ofthe 13 per cent decrease suffered in2003. The benefiting destinationswere Austria, climbing two positionsto seventh place, and Germany,climbing one to ninth. The order oftourism earners reflects the impactof SARS and the exchange ratefluctuations experienced in 2003,with European destinations movingup and Asian destinations movingdown. Most likely, however, thelatter will be temporary as Asiandestinations are expected to quicklyregain lost ground.

Tourism back on track continued from p.1


DICK’SHOTLINE28

Saudi Arabia's ruling family is underunprecedented pressure – from within andoutside the kingdom – to reform. How the Houseof Saud responds to that pressure will determineits survival and the business, social and securityclimates in Saudi Arabia. IJET Travel RiskManagement looks at the possibilities for peace

Since the explosion of oil wealth in the 1970s, theHouse of Saud has overseen a dramatic change inthe Desert Kingdom. In 1970, the country waspredominantly a closed society and cities weresmall; camels were the dominant mode oftransportation for the Bedouin tribes thatdominated the Arabian Peninsula. Now Saudisociety is largely urban and modern.Despite modernization, Saudi customs have largelyremained intact. The rise of Islamic militancy haslimned the tensions created between tradition andmodernity and Al-Qaeda militants are nowpresenting the House of Saud with a complex setof problems that the ruling family must overcomein order to remain in power.

Present challengesThe present threat is posed by an especiallyextreme element inSaudi Arabia thatembraces a hard-lineinterpretation ofIslam, and views theSaudi leadership andall outside influencesas deviant. Theradicals intend todrive out all foreignworkers and force achange in leadership.The country'sdeterioratingeconomic conditionsexacerbate theproblem. Thisgeneration of youngmen, brought up tohate outsiders andwith little hope of economic prosperity, areattracted to the militant ideology that promisesthem ‘salvation’ from the harsh realities of theirdaily lives.

Overcoming militancyIn order to overcome the rise in militancy, theSaudi government must implement reforms,especially in education and government. Saudischools must teach tolerance of the outside worldand provide children with an education that willallow them to compete in the global economy. Theruling family needs to allow and promote equalityof the sexes, freedom of the press, politicalassociations and elections (starting at the locallevel) and – most importantly – needs to root outcorruption.Since the May 2003 terrorist attack in Riyadh, theruling family has slowly begun making reforms,but Saudi society remains highly conservative andresistant to change. A key element in the battleover reforms, and the pace at which they may beimplemented, is the House of Saud successionissue.

SuccessionPerhaps the most important change to affect theHouse of Saud is the eventual transfer of power toa new generation. The sons of Abdul Aziz ibn Saudare first in the line of succession, but the 35 sonsare old and suffer from health problems. CrownPrince Abdullah is 80 years old and his health isnot likely to last to the end of the decade. Next in line is Defense Minister Prince Sultan,followed by Interior Minister Prince Naif. Bothmen suffer from health problems, and Sultan isbelieved to be uninterested in becoming king. Abdullah is rumored to be seeking theappointment of a crown prince who is not relatedto the Sudayri Seven, the most powerful group inSaudi leadership – most likely Foreign MinisterSaud al-Faisal. Given the power of the SudayriSeven, however, that will be hard to achieve.

Algeria, Iran or EgyptWhile reforms are urgently needed, they cannot beimplemented hastily. Poorly planned reforms couldbackfire and further fuel the spread of Islamicmilitancy. In large part, Saudi Arabia's future depends onwhat path the Islamic militants take and how the

authorities react to the recent wave of attacks.Some fear that Saudi Arabia will suffer the samefate as Algeria, where a 12-year Islamic civil warhas killed more than 150,000 people and has sunkthe economy. Others have speculated that the kingdom willexperience a violent revolution and become anIslamic theocracy, as happened in Iran, but this ishighly unlikely. Saudi Arabia most likely will see itsIslamic militant movement go the way of Egypt's,where a small group of militants was able to causetemporary instability, but were weakened by theEgyptian government's extreme security measures,which included torture and tight media control.The Saudi government has already shown awillingness to use such tactics against militants. The House of Saud faces an uphill struggle againstthe rising tide of Islamic militancy. Despite theobstacles facing it, Saudi Arabia's ruling family isunlikely to crumble in the near term. Business,religious and social establishments remain loyal tothe House of Saud and will back government-sponsored reforms. Only internal fighting and aninability to grasp the need for change will causelong-term instability.

Saudi Arabia: will theHouse of Saud survive?

Pushing tin across Europecontinued from p.12

‘At the heart of the Civil Aviation Authority's safetyoversight of UK aviation is the objective of ensuringthat the strong growth in air activity in recent yearsdoes not give rise to a corresponding reduction insafety. Neither the CAA, nor the aviation industryare complacent about the high levels of safetyachieved in the UK and we remain focused onsustaining that hard-won record’Recent air disasters are adding to the unease in theaviation industry and calls for more universalregulations and standards to help avoid the nearmisses that are kept quiet and the crashes thatreverberate around the world, are abundant. The Uberlingen disaster in July 2002, which saw a

DHL freight aircraft crash into a charter flight packedwith Russian schoolchildren flying from Moscow toBarcelona, was the third fatal aeroplane accident inthree years caused by errors in air traffic control. Sixty-nine people were killed. It followed collisions on theground at Paris’s Charles de Gaulle airport in 2000 andMilan’s Linate airfield in 2001. Most recently, inFebruary this year, a Kish Airlines plan crashed inShaijah, United Arab Emirates causing 44 fatalities.

However, when ITIJ contacted Dan Rupp from theCrash Database he denied there was a problemwith the air traffic control network: ‘Accidentscaused by air traffic controller error are actually theleast common type of aviation accident. There havebeen only a few midair collisions involving largepassenger aircraft in recent years. Most accidents involving controller error do notinvolve midair collisions. More frequently, incorrectinformation about weather or terrain, given topilots by an air traffic controller, are likely tocontribute to accidents.’Mr Rupp went on to say: ‘If anything, the frequency ofaccidents involving air traffic controller error should

decrease in coming years, as newtechnologies are developed to enhanceaviation safety. Such technologies includeTCAS II (Traffic Collision AvoidanceSystem - Two), which alerts pilots of anoncoming aircraft and directs the pilots tomake evasive manoeuvres, and isrequired to be installed in all passengeraircraft in Europe.’Eurocontrol is concerned by the trend.‘It worries us a lot when we see twoaccidents on runways in successiveyears and a mid-air collision – which issomething Europe has not experiencedfor many years,’ said Mr Aguado.The agency is currently working on a

new system that will give air traffic controllers an18-minute warning of any potential collision –rather than the current two minutes – and, with it,a bit more breathing space should ease thepressure on controllers.According to statistics, at present, one in 10 millionflights ends with an accident caused by air trafficcontrol – a statistic that is set to get worse ifgridlocked skies are not properly managed.


HOTSPOTS30

AIR AMBULANCE

Aerojet 4631 NW 31st Ave #220 Tel: +1 954 730 9300 [email protected] Stuart HaymanFt Lauderdale Fax: +1 954 485 6564 www.aero-jet.com PresidentFL 33309 Jacobo BercoviciUSA Vice-President

Aeromed 365 Ltd Gainsborough House Tel: +44 1293 582 500 [email protected] Alida BentonHigh Street Fax: +44 1293 582 501 www.aeromed365.com Managing DirectorCrawleyRH10 1BWUK

Air Ambulance Professionals, Inc. Ft. Lauderdale Executive Airport Tel: +1 954 491 0555 [email protected] Brian L. Weisz1535 South Perimeter Rd Fax: +1 954 491 6114 www.airambulanceprof.com PresidentHangar 36B Ft. LauderdaleFlorida 33309 USA

Air Ambulance Specialists, Inc. 8001 S. Interport Blvd. Toll Free: +1 800 424 7060 [email protected] Donald JonesSuite 250 Tel: +1 720 875 9182 www.airaasi.com PresidentEnglewood Fax: +1 720 875 9183CO 80111USA

Air Trek Air Ambulance 28000 A-5 Airport Road Toll Free: +1 800 6335387 [email protected] David BumpPunta Gorda Tel: +1 941 6397855 www.medjets.com Vice PresidentFL 33982USA

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina VaderaLangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical DirectorPO Box 18617 Fax: +254 20 336 886 www.amref.org Sean CulliganNairobi Mob: +254 733 639088 OperationsKENYA

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Aurelio RodriguesMedical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager

9000-056 Funchal Medical (24hr): +351 965 013 938 Dr E AçafrãoMadeira Ops. (24hr): +351 963 443 339 Medical DirectorPORTUGAL

Canadian Global Air Ambulance TORONTO Tel: +1 204 888 5555 [email protected] Deryck WilliamsWINNIPEG Fax: +1 204 888 9111 www.canadianglobalair.ca Director of Sales & Mktg.VANCOUVER Toll Free: +1 800 563 3822

DRF German Air Rescue Raiffeisenstr 32 Tel (24hr): +49 711701070 [email protected] Rainer Horcher70794 Filderstadt Fax: +49 711701071 www.german-air-rescue.de Head of Alert CeterGERMANY Volker Lemke

Sales & Marketing Manager

Egres Aeromedical Evacuation Services Postnet Suite 82 Tel: +27 11 701 2172 [email protected] S.D. Avice Du BuissonPrivate Bag X4 Fax: +27 11 701 2173 www.egres.co.za Managing DirectorLanseria 1748SOUTH AFRICA

Euro-flite Air Ambulance Helsinki International Airport Tel: +358 20510 1900 [email protected] Juani MissonenPO Box 187 Fax: +358 20510 1901 Coordinator/Programme DirectorFIN-01531 VantaaFINLAND

FAI Flight - Ambulance International Flughafenstrasse 100 (GAT) Tel: +49 911 36009 0 [email protected] Sven MuellerD-90411 Nuremberg Fax: +49 911 36009 59 www.flightambulance.net Operations ManagerGERMANY

Global Air Response 7355 S Peoria Street Tel: +1 800 631 6565 [email protected] Tom CoxA3/ Suite 209 Intl. Tel: +1 303 858 9967 www.airresponse.net Director of Business DevelopmentEnglewood Fax: +1 888 631 6565CO 80112 Intl. Fax: +1 303 858 9968USA

Global Medical Support Ullevaal University Hospital Tel: +47 22 96 50 50 [email protected] Otto Karud0407 Oslo Telefax (24 hr): +47 22 96 50 51 www.globalmedicalsupport.com Marketing DirectorNORWAY Tel: +47 22 96 50 00 May Furuli

Telefax: +47 22 96 50 31 Operations Manager


SERVICEDIRECTORY 31call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected]

IFRA Bahnhofplatz 13 Tel: +43 273 282 561 [email protected] Dr Christian SteindlPO Box 160 Fax: +43 273 285 101 www.ifra.atKremsAUSTRIA

JetWest 16644 Roscoe Blvd Tel: +1 818 787 9100 [email protected] Shawn CrockerVan Nuys Fax: +1 818 787 4473 www.jetwest.comCalifornia91406

USA

Luxembourg Air Ambulance 175A, rue de Cessange Tel (24hr): +352 420 440 1 [email protected] Andy BreedenL-1321 Tel: +352 420 440 61 www.air-ambulance.lu OperationsLUXEMBOURG Fax: +352 420 440 66 Louis Wright

Sales & Marketing Manager

Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin(Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Managermedical escort worldwide) FRANCE Dr. Francois Bouchereau

Medical Director

Medical Jet Services & Partner Radetzkystr 19 Tel: +43 1 713 2799 [email protected] W DichtlVienna Fax: +43 1 713 2799-19 www.medicaljetservice.com1030 24hr Tel: +43 699 1570 1570AUSTRIA 24hr Fax: +43 699 4570 1570

National Air Ambulance 3495 S.W. 9th Ave Tel: +1 954 359 9900 [email protected] George MartinezFt. Lauderdale Toll Free: +1 800 327 3710 www.nationalairambulance.com Manager Flight CoordinationFL 33315 Fax: +1 954 359 9500USA

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Shane Marais49 New Road Fax: +27 11 254 1405 www.netcare911.co.zaHalfway HouseMidrand 1685SOUTH AFRICA

North Flying A/S Aalborg Airport Tel: +45 96 32 29 00 [email protected] Jef SorensonNorresundby Fax: +45 96 32 29 09 www.northflying.com Sales DirectorDK-9400DENMARK

Pacific Flight Services Pte. Ltd ST Aerospace Engineering Bldg. Tel: +65 6481 3756 [email protected] Katherine YeoA subsidiary of Singapore Technologies Aerospace Ltd Seletar West Camp Fax: +65 6482 1727 www.fly-pfs.com

Seletar AirportSINGAPORE 797796

Parkway Group Healthcare Ltd 302 Orchard Road Tel (24hr): +65 67 35 5000 [email protected] Lum Hean ChoongSuite16-01/02/03 Fax: +65 67 32 6733 www.imrc.com.sg Assistant GMTong Building238862SINGAPORE

Provincial Airlines Ltd PO Box 29030 Tel: +1 709 576 3140 [email protected] Barry GillinghamSt John’s Fax: +1 709 576 7363 www.provair.comNLA1A 5B5CANADA

Red Star Aviation Sabiha Gokcen Int. Airport Tel: +90 216 588 0216 [email protected] Mustafa AtacKurtkoy 34912 Fax: +90 216 588 0225 www.redstar-aviation.com CEOIstanbulTURKEY

Skyservice Lifeguard 9785 Avenue Ryan Tel: +1 305 534 5551 [email protected] David EwingAir Ambulance (Pierre Elliott Trudeou Fax: +1 305 534 4190 www.skyservice.com Vice President

International Airport) International Business DevelopmentQuebec H9P 1A2CANADA

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon BartonAUSTRALIA Fax: +649 256 9111 General Manager OperationsSINGAPORE

Swiss Air Ambulance/REGA PO Box 1414 Tel: +41 333 333 333 [email protected] Walter StunziZurich - Airport Fax: +41 654 3590 www.rega.ch PR/Marketing ManagerCH-8058SWITZERLAND


SERVICEDIRECTORY 32 To have your company listed in the Service Directory email: [email protected]

Tyrol Air Ambulance PO Box 81 Tel: +43 512 224 220 [email protected] Jakob RinglerA-6026 Fax: +43 512 288 888 www.taa.at Managing DirectorInnsbruk Airport AUSTRIA

VeriSafe International Ltd Unit B, 6/F Tel: +825 3110 1488 [email protected] Francis ChanLippo Leighton Tower Fax: +852 3005 4760 www.verisafehk.com Chairman103-109 Leighton Road www.verisafegroup.comCauseway Bay, Hong KongCHINA

AIR AMBULANCE INTERIOR

Air Ambulance Technology A-5282 Tel: +43 7722 85051 [email protected] Egon KuntnerRanshofen Fax: +43 7722 85051-22 www.airambulancetechnology.com PresidentAUSTRIA

ASSISTANCE COMPANIES


Antalya Assistance Muratpasa Mah. Tel: +90 242 243 6219 [email protected] Murat ArslanogluAdnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network ManagerGazihan K:4 D:21AntalyaTURKEY

ARC Transistance 11 Avenue Pleiades Tel: +32 2 776 04 70 [email protected] Hans BiekmannB-1200 Brussels Fax: +32 2 776 04 99 [email protected] Network DirectorBELGIUM www.arctransistance.com Gabriel Goldberg

Travel Insurance Sales Manager

ASISTUR Paseo del Prado Tel: +53 7 866 4499 [email protected] Emilio Guevara Fernández208 e/ Colón y Trocadero Fax: +53 7 866 8087 www.asistur.cu Managing DirectorHabana Vieja Nestor Silva PérezCiudad Habana Assistance Manager

CUBA

ASSIST-CARD 15, Rue du Cendrier Tel: +41 22 732 0320 [email protected] Alexia Keglevich1201 Geneva Fax: +41 22 738 6305 www.assist-card.com Managing DirectorSWITZERLAND

Assured Assistance Inc. 6880 Financial Drive UK Toll Free: +080013872487 [email protected] Martha TurnbullMississauga Toll Free: +18003872487 Director of OperationsOntario Tel: +1 905 816 2495L5N 7Y5 Fax: +1 905 813 4719CANADA

Athens Assistance Ltd 13 C Paleologou Str Tel: +30 210 4296 631 [email protected] Dr Dimitris KoliaiatisPiraeus Fax: +30 210 4296 661 [email protected] 35 Medevac: +30 210 4296 630 www.athensassistance.grGREECE



Customer Care Pty Ltd Level 3 Tel: +612 9202 8222 [email protected] Dianne Batcheldor60 Miller Street Fax: +612 9202 8220North Sydney 2060NSWAUSTRALIA

First Assistance PO Box 17-310 Tel: +64 9 356 1650 [email protected] Mary-Jo McDonaldGreenlane Fax: +64 9 356 1798 www.firstassistance.co.nz Sales & Marketing ManagerAucklandNEW ZEALAND

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian AllattQuebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-HerrinBelle Isle, FL 32812, USA Director of Business Development




SERVICEDIRECTORY 34

Global Voyager Assistance PO Box 11 Tel: +7 095 775 0999 [email protected] Costas Danilenko125124 Fax: +7 095 775 0998 [email protected] CEOMoscow Cyprus tel: +357 24 62 5099 [email protected] Maria BerkovaRUSSIA Cyprus Fax: +357 24 62 5065 www.gva.ru Business Development Manager

IKS Innovative Key Solutions IKS Plaza Tel: +90 212 340 4 IKS(457) [email protected] Özge YildirimBeyazdut Sokak No 6 Tel: +90 212 274 99 90 www.iks.com.tr International Business ManagerGayrettepe Besiktas Fax: +90 212 275 13 76 Deniz AkIstanbul 34349 General Manager

TURKEY

LuzDoc International Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice SilvaMedical Service Ltd Villa da Luz Fax: +351 282 780 709 www.luzdoc.com Medical Director

8600-174 LUZ LGSPORTUGAL

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Nikos AntimisarisMadrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Regional Director for EuropeSPAIN

Marm Assistance Sabiha Gokcen Int. Airport Tel: +90 216 588 0588 [email protected] Mrs Jill AtacKurtkoy 34912 Fax: +90 216 588 0602 www.redstar-aviation.com CEOIstanbul TURKEY

Medic’ Multiservices Rue du Pakistan - BP41 Tel: +216 73 369 000 [email protected] Dr Nejib KarouiSahloul 1 Fax: +216 73 369 001 [email protected] Medical Director4054 Sousse-Sahloul [email protected] Meher Ben OthmeneTUNISIA www.medicmultiservices.com Director of Operations

Medex Assistance Corporation 8501 LaSalle Road Tel: +1 410 453 6300 [email protected] John HmelnickySuite 200 Fax: +1 410 453 6301 [email protected] SVP Sales & MarketingBaltimore [email protected] Rob MooreMD 21286 www.medexassist.com Director of Business Development - UKUSA

Medisave Assistance PO Box 64272 Tel: +357 26 220 346 [email protected] Georgia Yagnam8073 Paphos Fax: +357 26 923 067 [email protected] Managing DirectorCYPRUS Tel (24 hr): +357 99 55 3737

MK International Emergency Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos10444 Athens Fax: +30 210 5131660 General ManagerGREECE

SOS-Hungary Assistance Company Csalogany Street 4/D Tel: +36 1240 0475 [email protected] Dr Peter FelkaiBudapest Fax: +36 1439 1440 www.soshungary.hu Medical DirectorH-1015 Hungary

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon BartonAUSTRALIA Fax: +649 256 9111 General Manager OperationsSINGAPORE

TBS Team 24 d.o.o. Ljubljanska Ulica 42, Tel: +386 2618 2301 [email protected] Tomaz Bezensek2000 Maribor Fax: +386 2618 5800 www.tbs-team24.com Marketing ManagerSLOVENIJA(covering CROATIA, BOSNIA and HERZEGOVINA & SERBIA)

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret WhartomSuite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel DivisionNYCNY 10007

USA

Universal Assistance Avenida Córdoba 967 Tel: +(54 11) 4323 6073 [email protected] Alberto ChapurC1054AA1 Fax: +(54 11) 4323 6004 [email protected] CEO Buenos Aires www.universal-assistance.com Michel OrtizARGENTINA Commercial Manager

VeriSafe International Ltd Unit B, 6/F Tel: +825 3110 1488 [email protected] Francis ChanLippo Leighton Tower Fax: +852 3005 4760 www.verisafehk.com Chairman103-109 Leighton Road www.verisafegroup.comCauseway Bay, Hong KongCHINA

To have your company listed in the Service Directory email: [email protected]

World Travel Protection Canada Inc. 400 University Avenue Tel: +1 416 977 3565 [email protected] Lambert Boenders15th Floor Fax: +1 416 205 4676 www.wtp.ca VP Operations & Customer RelationsToronto Nicole SeniorOntario M5G 1S7 Marketing DirectorCANADA

CLAIMS HANDLERS


TURKEY

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Maria Luisa Gutierrez FernándezMadrid 28023 Fax: +34 91 581 18 32 [email protected] Cost Control Co-ordinatorSPAIN www.mapfre.com/asistencia Virginia Villanueva

Medical Director

CLAIMS MANAGEMENT

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian AllattQuebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-HerrinBelle Isle, FL 32812 Director of Business DevelopmentUSA

CONSULTING SERVICES


TURKEY

The Maturin Group 902 Arabian Avenue, Tel: +1 407 366 6830 [email protected] Alan J JonesWinter Springs Fax: +1 407 366 6647 PresidentFL 32708USA

CRITIAL CARE PATIENT TRANSPORTATION

Lufthansa German Airlines FRA SQ/B Tel: +49 561 99 33 7020 [email protected] Doris Ehring(Patient transport compartment) Frankfurt Airport Fax: +49 561 99 33 117 Key Account, Product &

D-60546 Mob: +49 172 36 77 929 Process ManagementGERMANY

CRM


TURKEY

FUNERAL DIRECTORS

Defin Funeral Services Muratpasa Mah. Tel: +90 242 248 8389 [email protected] Murat ArslanogluAdnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network ManagerGazihan K:4 D:21AntalyaTURKEY

Funeraria Officia Roberto Zega Via Clelia 26-28 Tel: +39 067 840 300 [email protected] Cristina ZegaRoma Fax: +39 067 802 488 www.zega.it General ManagerITALY

Funeralcare International 221 Upper Richmond Road Tel: +44 20 8788 5303 [email protected] Mike JohansonPutney Fax: +44 20 8788 2525London SW15 6SQUK

MK Funeral & Transportation Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos10444 Athens Fax: +30 210 5131660 General ManagerGREECE

Phoenix International 13 The Broadway Tel: +44 208 993 8767 [email protected] Steve ThomasGunnersbury Lane Fax: +44 208 993 5797 Managing DirectorLondonW3 8HRUK




SERVICEDIRECTORY 36

Rowland Brothers International 299 - 305 Whitehorse Road Tel: +44 20 8684 2324 [email protected] Steve RowlandWest Croydon Fax: +44 20 8684 8000 www.rowlandbrothersinternational.co.uk Tony RowlandSurrey CR0 2HRUK

Servilusa SCI Portugal Tel: +35 121 354 8258 [email protected] Paulo CarreiraAgencias Funerarias SA Toll Free: +35 800 204 222 Marketing DirectorRua do Entreposto Industrial 8-2º Esq, 2610-135 AmadoraPORTUGAL

HEALTHCARE CLINICS

Number One Health Group 1 Harley Street Tel: +44 207 307 8756 [email protected] Dr Charlie Easmon(Incorporating Travel Screening London W1G 9QD Fax: +44 7092 196 169 www.executivescreen.com DirectorServices and Exectutive Search) UK

HOSPITALS

Baptist Health South Florida 8900 North Kendall Drive Tel: +1 786 596 2373 [email protected] Yohandra NoriegaMiami www.baptisthealth.net Int. Patient Service DirectorFlorida 33176USA

Hospital Clinica Benidorm Avenida Alfonso Purchades 8 Tel: +34 96 585 3850 [email protected] Ana DaPaz Brown03500 Benidorm Fax: +34 96 586 4345 www.clinicabenidorm.com Medical DirectorAlicanteSPAIN

INTERNATIONAL GROUND TRANSPORT CO-ORDINATOR

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France PaquinSuite 201 Fax: +1 905 629 1927 www.parkviewems.comMississauga Toll Free: +1 888 795 9570Ontario L4W 4W7CANADA

MEDICAL COST CONTAINMENT

ChargeCare International PO Box 18 Tel: +44 1409 261 368 [email protected] Philip MarshallHolsworthy Fax: +44 1409 261 633 www.chargecare.co.uk Director of OperationsEX22 7WBUK

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian AllattQuebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-HerrinBelle Isle, FL 32812 Director of Business DevelopmentUSA

Global Medical Management 7901 SW 36th Street Tel: +1 954 370 6404 [email protected] Raija ItzchakiSuite 100 www.gmmusa.com Assistant VP MarketingDavieFL 33328USA

Hygeia Corporation 15500 New Barn Road Tel: +1 305 594 9291 [email protected] Joe RadiganSuite 200 Fax: +1 305 594 9201 www.hygeia.net Chief Operating OfficerMiami LakesFL 33014USA


TURKEY

Intercontinental Corporation 5975 Castle Creek Parkway Tel: +1 317 806 2000 [email protected] Karla KregerSuite 100 Fax: +1 317 806 2033 www.us-icc.com Manager, New Business IntegrationIndianapolisIN 46250USA

Mapfre Asistencia, S.A. C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Nikos AntimisarisMadrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Regional Director for EuropeSPAIN

To have your company listed in the Service Directory email: [email protected]



Medisave Assistance PO Box 64272 Tel: +357 26 220 346 [email protected] Georgia Yagnam8073 Paphos Fax: +357 26 923 067 [email protected] Managing DirectorCYPRUS Tel (24 hr): +357 99 55 3737

Medsave USA 1400 Old Country Road Tel: +1 516 622 1700 [email protected] Donald MoyleSuite 109 Fax: +1 516 622 1733 www.medsaveusa.com Chief Marketing OfficerWestburyNY 11590USA

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret WhartomSuite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel DivisionNYCNY 10007

USA

MEDICAL ESCORT ON COMMERCIAL AIRLINES



Global Air Response 7355 S Peoria Street Tel: +1 800 631 6565 [email protected] Tom CoxA3/ Suite 209 Intl. Tel: +1 303 858 9967 www.airresponse.net Director of Business DevelopmentEnglewood Fax: +1 888 631 655CO 80112 Intl. Fax: +1 303 858 9968USA

Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin(Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Managermedical escort worldwide) FRANCE Dr. Francois Bouchereau

Medical Director


MEDICAL PROVIDERS





LuzDoc International Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice SilvaMedical Service Ltd Villa da Luz Fax: +351 282 780 709 www.luzdoc.com Medical Director

8600-174 LUZ LGSPORTUGAL

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Nikos AntimisarisMadrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Regional Director for EuropeSPAIN


Swiss JapanSwiss Re has appointed Stephan Wirz to Head ofProperty & Casualty, Swiss Re Japan branch. Hereplaces Taiichi Nakajima who becomes ChiefOperating Officer and Head of Shared Services ofthe Japan branch. Mr Wirz joined Swiss Re in 1993, becominginvolved in the Japanese and Korean businesseswhen he moved to the Asian property and casualtydivision in 1995. Mr Wirz has spent the last fouryears in Korea and iscurrently GeneralManager of Swiss Re'sKorea branch. As CEO, TaiichiNakajima will beresponsible for theoperational performanceof the Japan branch,including the Accountingand Finance functions.Mr Nakajima has been inthe capital and risk industry for almost 30 years, firstwith the Tokio Marine and Fire Insurance Companyand then with Citicorp in both Tokyo and London.He joined Swiss Re in Zurich in 1990, returning toTokyo in 1992 to lead the property and casualtybusiness in the then representative office. He waspart of the team that led the transition to ServiceCompany, and then to branch status.

ReiseversicherungappointmentRichard Smith has been appointed as AssistantUnderwriter for the UK Branch of UnionReiseversicherung AG. Mr Smith will work on the development of newtravel insurance business and the renewal ofexisting contracts from their Tonbridge base. He joins Travel Insurance Facilities from Travel andGeneral Insurance Services, where he was anAccount Manager specialising in travel insurance.Previously he spent four years with travel insurancespecialist Inter Group.

Andrew down under

QBE Travel InsuranceGeneral Manager GeoffCutting has resigned totake up a senior positionat QBE MercantileMutual.Peter Andrew formerlywith QBE Perth, from 1July, will replace MrCutting at QBE Travel inAustralia.QBE Travel has also announced the retirement oflong-serving National Sales Manager Bill Jackson.Mr Jackson was previously with Ready Plan TravelInsurance and also worked for New Zealand tourcompany Guthreys.

Slovakia AllianzTorsten Leue is the newChief Executive Officerof Allianz - Slovenskapoist’ovna. He replacesManuel Bauer whoworked as CEO ofAllianz – Slovenskapoist’ovna for six years.Leue graduated from theUniversity of Berlin witha focus on finance,manufacturing, accounting and human resources.Before joining Allianz in 1993 he worked forDeutsche Bank. Between 1993 and 1996 he was aSales Manager in the Allianz regional office in Berlin.Since 1997 he has been working as a DeputyRegional CEO for the Central and Eastern EuropeMarkets Group in Allianz.

Aegon in India

Netherlands-based insurer Aegon has appointedVimal Bhandari as India Country Manager. In hiscapacity as Executive Director at IL&FS, MrBhandari gained extensive experience in the Indianfinancial services industry. The appointment is inline with Aegon's strategy to establish a presence inthe fast growing insurance and savings market inIndia. Mr Bhandari will be based in Mumbai.

STRETCHER SYSTEMS

Bucher Leichbau AG Indusriestrasse 1a Tel: +41 (1) 806 2424 [email protected] Daniel Mettler

Fallenden Fax: +41 (1) 806 2420 www.bucher-group.com CEO

CH-8117

SWITZERLAND

TRAVEL AGENTS

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin

Suite 201 Fax: +1 905 629 1927 www.parkviewems.com

Mississauga Toll Free: +1 888 795 9570

Ontario L4W 4W7

CANADA

Voyageur Aeromedical Travel Voyageur Buildings Tel: +44 (0)117 927 3554 [email protected] Marc Lucas

43 Colston Street Fax: +44 (0)117 925 5940 www.voyageur.co.uk General Manager

Bristol BS1 5AX

UK

UNDERWRITERS

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Nikos Antimisaris

Madrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Regional Director for Europe

SPAIN


SERVICEDIRECTORY 38 To have your company listed in the Service Directory email: [email protected]

20-23 JulyRAA Re Contracts/ Programs/

OperationsThe Art of Designing Reinsurance Contracts

and ProgramsHelmsley New York Hotel, New York, US

www.reinsurance.org

22 JulyFundamentals of Captives: Exploring

captives as a hard market solutionOne day of intensive education covering the

most important elements of captive insuranceHyatt Regency, Oak Brook, Illinois, US

www.ibcusa.com

2-4 AugustEnterprise Wide Risk Management

SeminarAdvanced three-day course for financial

professionalsHarbour Town Conference Centre,

South Carolina, USwww.seapinescpe.com

2-3 AugustA practical approach to Advertising

Compliance for the insurance industry A seminar to provide practical information

regarding advertising compliance in the industry.Addresses life, annuity, and health insurance,

including a segment on the internet and a segmenton Best Practices you can take home to use.

Kansas City, UShttp://www.firstconsulting.com

5-6 AugustAdvanced fraud investigation: National

Association of InsuranceCommissioners

Training in current issues and topics related toinsurance fraud schemes and investigations.

Insurance regulators and industry personnel willlearn about current schemes, trends, and advanced

investigative techniquesBoston, US

http://www.naic.org/education

8-11 AugustARIA 2004

2004 Annual Meeting of the American Riskand Insurance Association

Westin Michagan Avennue Hotel, Chicago,Illinois, US

www.aria.org

10 August2nd Annual Mold and the Insurance

Industry ExecuSummitNew York Hotel, Pennsylvania, US

[email protected]

10-12 AugustDiving into Captives

VCIA 19th Annual ConferenceSheraton Conference Center, South

Burlington, Vermont, Canadawww.vcia.com

29-31 AugustThe NeXt Generation Insurance

Professionals ConferenceIndependent Insurance Agents and Brokers of

New York's ConferenceGideon Putnam Hotel, Saratoga Springs,

New York, USwww.iiaa.org

5-8 SeptemberURMIA's 35th Annual Conference

New Frontiers in the Last Frontier -Risk Management

Anchorage Hilton, Alaska, USwww.urmia.org

8-10 SeptemberLIMRA/LOMA/Milliman DI & LTC

Insurers' ForumDisability in income and long-term care

conferenceSheraton Boston Hotel, Boston, US

[email protected]

Diary dates

CONTRIBUTORS

Fortifying Fortis

Robert ter Weijden will become the new Directorof Investor Relations at Fortis as of 1 September.He will succeed Ian Roundell, who will be returningto the UK to further his career and who will remainin an advisory capacity at Fortis until the end ofOctober. Robert has been with Fortis since 1993 and willlead a team of six people. Since 2000, he has beena senior member of the Investor Relations team atthe company.

Help for HygeiaMarket research and account management expertStephen Burn joins Hygeia Corporation as AccountManager, where he will help grow the company’sclient relationships and contribute to the delivery ofits superior client services in the healthcare market.Mr Burn has over 15 years experience in accountmanagement and market research withorganizations such as NPD Group Canada, Inc. andInternational Surveys Limited.Prior to joining Hygeia, Mr Burn spent over eightyears with NPD Group Canada, Inc., where heserved as Senior Account Manager of theConsumer Electronics, INTELECT Division, as wellas Client Group Manager and Account Manager oftheir Consumer Division. From 1986 to 1995, MrBurn worked for International Surveys Limited asAccount Executive and Market Analyst for theConsumer Panel of Canada Division, as well asGroup Manager and Report Programmer. Mr Burn holds a Bachelors degree in EnvironmentalStudies (Industrial Geography & Economics) fromUniversity of Waterloo, Ontario, Canada.

Technical Groupama

Groupama Insuranceshas declared theappointment of GrahamGibson as ClaimsDirector withresponsibility for thetechnical integrity andoperational effectivenessof the K Group’s claimsoperations.Mr Gibson moves upfrom his previous

position as Claims Operations Director andsucceeds Claims Technical Director Mick Booth.After more than 40 years with the Group, MrBooth retires on 15 July.Mr Gibson joined Grouprama Insurances in 1995and has subsequently held a number of seniorclaims appointments. He has also participated in avariety of market claims initiatives and he iscurrently a member of the Association of BritishInsurance Strategic Claims Committee. In addition,he has a substantialinvolvement with theCivil Justine Councilparticularly in the area ofclaimant’s costs.Commenting on MrBooth’s impendingdeparture fromGrouprama, Francois-Xavier Boisseau said:‘Mick has served thegroup well over a longand distinguished careerand his professionalism, technical expertise andwise counsel will certainly be missed.’

Extra LargeappointmentsXL Re has announced the appointment of JeremyHindle as ceded reinsurance and Underwriting RiskManager.Mr Hindle is currently Director of propertyunderwriting at XL Re Europe. Currently based inParis, he is expected to relocate to London. ‘Havingworked in reinsurance underwriting for more than20 years, I look forward to contributing to thesuccess of XL Re with a focus now on the buyingside, as well as the responsibility of managing XLRe’s internal underwriting risk.’Chief Executive of XL’s Reinsurance operations,Henry Keeling, said: ‘We are very fortunate to havesomeone with Jeremy’s experience in thisimportant role that embraces not only our globalreinsurance buying, but also has oversight of ourinternal underwriting risk.’

Ace retains Kramer Donald Kramer has been made Executive, Office ofthe President and Chief Officer, of Ace. Theappointment follows his retirement from the AceLimited Board of Directors on 27 May, where hehas been Vice Chairman since 1996.Mr Kramer will assist the President and ChiefExecutive Officer of Ace Limited, Evan Greenberg,on various projects and will represent him fromtime to time.Mr Greenberg said: ‘Mr Kramer’s new role at Aceensures that we can augment the effectiveness andreach of Ace at the most senior level. Mr Kramerhas been a key ambassador for Ace since he joinedus in 1996 and anintegral part of Ace’sdevelopment into theglobal player it is today.There are very fewpeople with MrKramer’s expertise andbackground. I amextremely pleased thathe will be remaining withAce in this new position.’

Brosi for SingaporeSwiss Re has announced the appointment of Dr RetoBrosi as Principal Officer of the company's SingaporeBranch. Mr John Lockyer, who has served as PrincipalOfficer since 1999, is relinquishing the position onreaching retirement age. Dr Brosi is currently General Manager of Swiss Re'sProperty and Casualty business for South East Asia.Before his move to Singapore in early 2003, he ledthe casualty treaty underwriting team at thecompany's Divisional Underwriting Office in HongKong, where he was responsible for strategydevelopment, business planning, strategy execution,as well as for underwriting guidelines and seniorlevel client contacts. He joined Swiss Re in1994 in the Asia-PacificPlanning & DevelopmentDepartment in Zurich,Switzerland, and movedto Hong Kong in 2000.Mr Brosi received hisPhD in 1993 from theUniversity of Basel andGeneva.

New President for CEA

French Treasury Official Gérard de la Martinière isthe new President of the Comité Européen desAssurances (CEA). He was voted in at the CEA’sannual general assembly in Prague and replacesEureko Chief Executive Gijsbert Swaleft, who wasthe previous President for three years.

Changes in ZurichteamZurich Financial Services has revealed that MalcolmGilbert has been appointed to assume responsibilityfor Investor Relations, Financial Planning andAnalysis.In addition to her current responsibility for ratingagencies, Seraina Maag-Gubler will now alsoassume responsibility for Investor Relations. Reinhard Stary will move from his current role inInvestor Relations to the newly created position ofChief Operations Officer of the InternationalBusiness segment.

Verisafe’s new MedicalDirector VeriSafe are pleased to announce the employmentof Dr Bertrand Guichoux as their new MedicalDirector. Dr Guichoux practiced inFrance before joining thefield of medical assistanceand he has more thannine years of experiencein the Greater China andSoutheast Asian region asMedical Director. Beforejoining VeriSafe, he hadworked for InternationalSOS & AEA and GlobalAssistance and Healthcareof Indonesia.

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INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522

Sometimes all these documentsyou have to carry in order totravel just get too confusing!

A man called his travelcompany and had a questionabout the documents heneeded in order to fly toChina. After a lengthydiscussion about passports, hewas reminded he needed avisa to enter the country. ‘Ohno I don't, I've been to Chinamany times and never had tohave one of those.’

The consultant double-checked and sure enough, hisstay definitely required a visa.When he was told this he said,‘Look, I've been to China fourtimes and every time theyhave accepted my AmericanExpress.’ The travel agent wasleft speechless.

Smile corner

Graham Gibson

Mick Booth


ONTHE MOVE 39

Dick Atkins is chief counsel for InternationalRecoveries, Philadelphia, which provides global legalassistance to the travel insurance industry. He is incharge of International Recoveries’ legal hotline andhas been involved in handling international legalincidents for the past 20 years. He can be reachedvia email on [email protected]

Robert Bailey is an experienced internationaljournalist and an expert on the Middle East andAfrica. He has contributed to several financialpublications including the Wall Street Journal.

Jane Collingwood is a freelance health writer andjournalist, based in Bristol, UK. Her background is inhealth, psychology, and scientific research methods.Jane writes regular health news stories andpublishes articles on a wide variety of health topics.

Saby Ganguly is an India-based business writer withmore than 20 years’ experience, including 16 in theMiddle East. He is also the founder ofIndiaOneStop.com, which is one of India’s earliestestablished business-to-business websites.

Steve Hook has recently been promoted to theposition of Director, Corporate and Travel Division atMondial, responsible for the strategic growth anddevelopment of the division. Steve joined thecompany eight years ago as Business DevelopmentManager and has built an indepth understanding ofMondial's business platforms across all areas.

iJET Travel Intelligence (www.ijet.com), the travel riskmanagement company, provides real-time travelintelligence information through its award-winningWorldcue (copyright) technology platform fortracking and communicating with travellers. iJETservices are backed by regional and categoryspecialists from the fields of intelligence, security,travel, and health who staff an around-the-clockoperations centre in Annapolis, MD.

Anne Johnson has been involved in journalism andpublishing all her working life as both writer andeditor, and has freelancing for nearly 20 years. Shewrites on a variety of subjects, including health, food,lifestyle and travel.

Milan Korcok is an award-winning freelance healthpolicy and economics writer who covers travelinsurance, public health, and medical educationissues in Canada and the United States. He has beenwriting about health financing and policy issues inthese countries since the 1960s and is a frequentcontributor to leading North American professionaljournals and consumer media. He lives in FortLauderdale, Florida.

Ronn Mullins, based in New York City, is a well-knownprofessional insurance journalist. For more than 25years, he has been writing about global insuranceissues, products, companies and people for severalinternational web and print publications. Hiswebsite, www.insfolks.com, has a cornucopia ofinsurance-related topics and products.

William Raynor is a freelance journalist,photographer and researcher who, since the 1970s,has worked in England, Scotland, South Africa andmainland Europe on business, travel and generalstories for newspapers, magazines and the BBC.Now dividing his time between London and Cowes,he can be reached by e-mail on: [email protected]

Christopher Wales worked in the ferry industry forover 20 years with such companies as P&O, StenaLine, Eurotunnel and Wightlink. He was Chairman ofthe Institute of Travel & Tourism, a founder boardmember and Chairman of the Coach Tourism Counciland co-founder of the Association of Tour Operatorsto France (ABTOF), for which he was awarded theTourism Medal by the French government.

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