The current debate in Congress over the debt ceiling and federal spending is raising the possibility of a reduction of the United State’s credit rating from “triple-A” to “double-A.” How? Well, the argument is that the Treasury could not make payments on existing debt. And, just like your household, when you cannot pay and are late or miss a payment your credit is damaged. The Treasury Department has stated: “If Congress fails to increase the debt limit, the government would default on its legal obligations – an event unprecedented in American history.”

What would this mean? How would this affect your business?

One effect may be an increase in business insurance premiums. How?

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Kiln has launched a new team to underwrite aviation risks in Singapore.

Led by underwriter Brendan Warner, the unit will focus on a broad range of aviation risks across the Asia-Pacific region, including: regional airline, general aviation, products & airport liability, hull war, hull deductible and excess liability.

Mr Warner, who has 33 years’ experience in the aviation insurance industry, will work alongside underwriter, Jenny Choi, and the two will be supported by Idie Si, an underwriting assistant recently relocated from Kiln’s office in Hong Kong.

The latest expansion follows the recent recruitment of a number of property, treaty, marine hull and marine liability underwriters to Kiln in Singapore.

The insurer’s regional managing director, Asia, Neil Wray, comments: “This latest move supports our aim to enhance our distribution network and product portfolio in line with our dynamic growth strategy.”

News posted: July 26, 2011

JLT Specialty says it is receiving growing interest in its EPIC (Earnings and Product Integrity Cover) product.

The non-damage business interruption policy has been developed by Life Science industry experts to mitigate the financial impact of a range of risks.

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The Flood Insurance Reform Act of 2011 (HR 1309), provides a five year reauthorization and updates the National Flood Insurance Program (NFIP). The House passed the bill yesterday in a bipartisan vote of 406 – 22.

Flood insurance, and the federal government’s participation in the market, raises significant policy questions as to how a country or a people should plan for risk. Should the federal government be involved in the program at all? Should restrictions on the program’s ability to provide insurance, where private insurers claim they provide adequate coverage, be eliminated?

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Aviva has revamped “People and Places”, its group personal accident (GPA), sickness and business travel policy, as it looks to grow business in this area.

New extensions including closure of airspace, kidnap and ransom cover, nuclear, chemical and biological cover, war cover outside the policyholder’s country of domicile, cover for rehabilitation expenses, search and rescue, and evacuation from life threatening situations.

Aviva specialty lines underwriter, Lisa Wild, comments: “We aim to reinforce Aviva’s reputation as a credible GPA partner with a policy that can rival the best available in the marketplace.”

People and Place can be purchased as part of Aviva’s commercial combined offering, or as a standalone policy.

This morning I attended a meeting where I spoke with a local insurance agent about a number of topics. He had missed our meeting the week before and some in the group asked about his uncharacteristic abscence.

It turns out he serves as a volunteer fireman for his local village. On the date of our last scheduled meeting he was still onsite at a house fire that occurred the previous night when our early morning meeting started. The house had been stuck by lightening and went up in flames quickly. The house was a total loss.

He then reverted back to our favorite insurance agent and stated, while thinking about the home owners, “I hope they were insured for replacement value.”

Business insurance can cover a loss for either market value or the cost to replace an asset.

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