Results tagged “increase”

Risks for oil business increase while risk management effectiveness decreases; study finds

National oil companies (NOCs) are failing to manage the risks of limited oil and gas resources, the recruitment and retention of a qualified workforce and energy price volatility, according to a Marsh study.
In the Marsh Oil and Gas Risk Report: 2008, more than 400 NOCs were surveyed and asked to rate the relevance of risks identified by the World Economic Forum and how effectively they felt they were managed by their firms.
The participants ranked the top five risks in order as: availability of oil and gas resources; recruitment and retention of a qualified workforce; energy price volatility; environmental impact of operations; and political/regulatory risk issues.
Marsh's NOC risk index score rose from 4.49 out of a possible six in 2007 to 4.51 in 2008, a release says.
"By contrast, the risk management effectiveness index score was 3.8."
The availability of resources as a risk issue was rated 5.3 out of a possible six (it was also the top-ranked risk in 2007 but with a rating of 4.9), a Marsh release says.
"It is no surprise that our survey has found that national oil companies are facing a riskier business environment," said Jim Pierce, Marsh's Global Energy practice leader.
"However, of more concern is the gap between the importance of the risk and how well it is managed."
This gap is increasing from year-to-year, Pierce noted.

Alberta decision projected to increase bodily injury claims costs by 29%

An actuarial report estimates bodily injury claims costs are expected to increase 29% -- implying an estimated 10.8% increase in the basic auto insurance premium -- following a decision in which the Alberta Court of Queen's Bench eliminated the province's Cdn$4,000 cap on payments for damages related to minor auto injuries.
The estimate is contained in a report submitted by the actuarial consulting firm Oliver Wyman Ltd. to the Alberta Automobile Insurance Rate Board.
The board will consider the report in deciding on the annual industry-wide rate level adjustment to become effective on Nov. 1, 2008.
Oliver Wyman's predictions were based in part on the findings contained in a 2004 KPMG report to the Alberta finance department. In it, KPMG found that out of the total 30.2% savings in bodily injury claims presented in the report, 21.3% -- or 70.5% of the total -- was due to the cap on minor injuries and the balance, 8.9%, was for non-cap-related auto insurance reforms.
"We assume this same relative split of costs, 70.5% versus 29.5%, is applicable today," Oliver Wyman notes. "As we estimate the minor injury cap to have resulted in a savings in bodily injury claim costs of 21.6%, we estimate that the repeal of the cap will result in an increase in bodily injury claim costs of 27.6% (1 divided by .784)."

Ontario auto rates increase in 2008 Q1

Ontario auto rates are on the rise, according to data posted by the Financial Services Commission of Ontario (FSCO), the regulator of the province's insurers.
Rate applications approved for 2008 Q1 averaged +1.05%, based on the entire market, FSCO noted in an online bulletin.
Rate changes approved in 2004, 2005, 2006 and 2007 were -10.60%, -2.43%, -1.27% and +0.55%, respectively, for the entire market.
In 2008 Q1, for the 43.37% of the market that had rate changes approved, the average rate change was +2.42%, when weighted by market share.

P&I claims and premiums on the rise, Aon report says

The surge in costly in protection and indemnity (P&I) pool claims in 2006 could be a sign of the times, as booming shipping operations become more expensive, according to Aon’s P&I Pre-renewal Report 2007.
In anticipation, P&I clubs are already initiating increases of 10-20% in shipowners’ premiums at the next renewal, Aon’s report notes.
“The high value of claims in 2004 – so far totalling US$280 million – were viewed as an anomaly, yet current evidence suggests that costly claims may be a feature of the current cycle,” Aon says in a press release.
Aon says 2006 claims, if they follow recent trends, could reach US$580 million. The 2006 average claim value of US$18.06 million would nearly double the 2004 average of US$9.66 million.

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U.S. insurance industry payroll increasing

Insurance industry payrolls in the United States increased by 1,500 in the month of October, to a new high of 2.367 million, reports A.M. Best Company.
Citing research from the U.S. Bureau of Labour Statistics, A.M. Best reported that average weekly earnings for the industry’s non-supervisory positions rose from US$799.62 to US$850.39 during the period between September 2006 and September 2007.
Insurance carriers’ weekly earnings jumped from $864.49 last year to $902.87 in 2007, but the brokerages and agencies showed the biggest gain, increasing from US$677.93 to U.S. $757.02, A.M. Best reported.
Claims adjusters’ average weekly earnings also saw a significant rise from US$807.75 to US$869.22. At the same time, this sector saw a loss of 1,500 jobs over the time frame.
Reinsurance payrolls, on the other hand, rose by 1,400 jobs (to 30,600) over the year. Over the same period, the reinsurance profession reported a drop in average weekly earnings from US$789.35 to US$768.41.
Property/casualty remained the most highly compensated segment of the industry, with a rise in average earnings from US$906.40 in September 2006 to US$956.81 this September.