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TRANSCRIPT
January 7
Happy New Year!
„Elbphilharmonie“ concert hall in Hamburg
Table of Contents
unisonBrokers News
Members
Market and Product Information
Conferences & Events
Editorial Team
The year 2016 has come to an end with full force and the new year has been welcomed
with at least the same intensity.
It remains to be seen what impact the election of Donald Trump as President of the Unit-
ed States of America will have on us. It is absolutely clear that we have to be alert to
much more protectionism in the USA and perhaps even beyond its borders and that in
this respect universal concepts (global “one-size-fits-all” approaches), also within the in-surance sector, will become increasingly insignificant.
The “Brexit” by the United Kingdom, which will be initiated this year, as well as 3 – 4 further
important new elections in the EU (the parliamentary elections in Italy, the Netherlands
and Germany as well as the presidential elections in France) will also lead to long-term
changes for Europe and for all former approaches to liberalization.
The increasing terrorist acts of the Islamic State, the effects of global warming, including
natural catastrophes, and the immigration and integration policies will still remain with us
for the foreseeable future.
In comparison, the changes within our own companies or in the insurance industry seem
like a grain of sand in the desert. However, exactly these changes will shape us in the fu-
ture and will also give us the necessary support in this apparently unstructured world.
As of January 1, 2017, the shareholder structure of unisonBrokers has been changed. We
have officially and legally paved the way for enabling further members to invest in
unisonBrokers AG. You will find some information on the new structure in this newsletter.
For further details, please feel free to contact the Management Board of unisonBrokers
AG.
Another subject we and many other companies will have to take a closer look at in 2017
is the field of digitalization. This will be a major topic at this year’s conference in Berlin, which we would like to cordially invite you to.
Moreover, we will strive to further stabilize our network and make it even more attractive
by means of additional services. We would be pleased if you would support us in achiev-
ing these goals also in the future. Your opinion and input are of great value to us.
Jean Paul Getty once said: „My formula for success is rise early, work late, and strike oil.“
Rising early and working late are things we can reconsider. But let us strike oil together.
Bearing this in mind, I wish you a successful year 2017.
Yours,
Dear members and business partners,
unisonBrokers News
unisonBrokers Beteiligungs GmbH
With effect from January 1, 2017, we launched the unisonBrokers Beteiligungs GmbH
(investment company) to enable our members to purchase shares in the unisonBrokers net-
work.
The unisonBrokers investment company with its first investor Lampe & Schwartze Group cur-
rently holds 5 % of the shares. However, in the long term, 25 % of the shares could be owned
by unison members as a part of the unisonBrokers investment company.
Balanced financial participation of the members may ensure that the network's interests are
kept and no single interests are pursued.
Members interested in purchasing unison shares may address our President & CEO to con-
fidentially discuss the options.
The current shareholder structure is as follows:
We publish your ad!
Our unisonTimes has become very popular with the unsionBrokers community. Whether brokers,
service partners or insurance carriers - more than 1,000 subscribers across the globe regularly
read our unisonTimes issues and this number is continuously growing.
We would like to give you an opportunity to use our unisonTimes as your marketing tool aimed at
enhancing your company's degree of brand recognition within the global unison network.
From our next issue on, you are kindly invited to place your company advertisements highlighting
your expertise, special knowledge and services.
½ -page advertisements are available at € 500, -
1-page advertisements at € 1,000, -
Annual subscription, which includes your advertisements published in four issues, will be availa-ble at € 1,000,- (4x ½ page advertisements at € 250, - ) or € 2,000, - ( 4x 1-page advertisements
at € 500,-)
If you are interested in placing an advertisement, please contact Gunda Stichbury at
[email protected] for more information.
Members
New Members
Germany
Lampe & Schwartze Group: www.lampe-schwartze.de
Contact: Mr. Thomas Haukje, [email protected];
Mr. Christof Behrens, [email protected]
Lampe & Schwartze Group is an independent group of companies in the insurance industry of-
fering a wide range of services. Our origins date back to 1858, when the company Lampe &
Schierenbeck was founded as a private insurer specifically for marine insurance.
Today, the Lampe & Schwartze Group is divided into different areas and subsidiaries, and has developed a competitive edge based on outstanding expertise. With 230 employees, we are one of the ten largest medium-sized and privately owned insurance intermediaries in Germany.
We aim for the new and provide insurance solutions to clients at home and abroad, protecting
businesses with fascination and our collective experience for over 155 years now.
All employees pursue a common goal at Lampe & Schwartze: first-class service. We employ en-gineers, captains, lawyers, business administrators and economists, and insurance managers who are largely trained in-house. Employees of many different nationalities enrich our internatio-
nal service team.
NW Assekuranz has extensive experience in handling complex industrial risks including in the areas of Mechanical engineering, Construction industry, Logistics, Maritime economy and a
widely appreciated expertise in Renewable Energies and major International Projects.
Great Britain
pib Insurance Brokers: www.pib-insurance.com
Contact: Mr. Mark Hicks, [email protected]
PIB is an independent dynamic insurance broker employing outstanding individuals with a
wealth of knowledge and experience in the insurance market. Founded in 2014, PIB is growing
rapidly and offers a range of specialist expertise, products and services to clients throughout the
UK. Our focus is on insurance market expertise, specialist client focus, strong personal relation-
ships and client service excellence. Although the trading history of PIB is relatively short, our peo-
ple have worked across the industry, often with large UK and international insurance brokers,
before deciding to bring their expertise to a new, more client focused environment. Our 15 of-
fices already reach across much of the UK, extending from Scotland, through the Midlands, East
Anglia and London, and we continue to open new offices as even more individuals and teams
become interested in our client centric brand of advice. PIB has a strategy to grow organically
and by making selective acquisitions, which we believe will enhance the services we offer to
our growing client base.
In terms of core services that our clients take advantage of, they are as follows: Broking (both
locally and in the London Market—including Lloyds), Claims Management, Risk Management,
Advisory, Analytics, Premium Funding
South America
LARS Brokers Network LLC: www.larsbrokers.com
Contact: Mr. Robert Cackett, [email protected]
Based in Miami, USA, LARS constitutes the largest independent insurance brokers network for
servicing companies with Latin Multinational focus and with representation all over the Ameri-
can continent. LARS is comprised of 20 leading insurance broking companies of Latin America
as well as the Spanish-speaking Carribean and aims at providing a highly professional service
with agreed common quality standard for every country.
Our services include, among others, Risk assessment for businesses, Insurance Program Design and Management, Personalized Claims Management as well as Insurance and related services
for employees.
USA
ISU Insurance Services of San Francisco: www.isugroup.com
Contact: Mr. Douglas Glenn, [email protected]
The ISU Insurance Agency Network, headquartered in San Francisco is committed to quality
and excellence in all we do. ISU’s Unique Competitive Advantage is prized by qualified, well established and highly successful Independent Agencies. The power of our Independence and the Strength of our Unity allows the ISU Insurance Agency Network to prosper by capitalizing on the strengths and resources of our national organization and combined with our local presence
and independence.
Our services include, among others, Employee Benefits, ISU Commuters, Private and commer-
cial insurance (Property and Casualty), Workers’ Compensation, Human Resources and Fi-nance Services, Safety and Claims Services, Specialty Programs (e.g. Employment Practices Lia-
bility and Trade Contractors).
Over $2 billon in written premiums
2,300 Full-Time Employees
180 Offices in 32 States
Over 300 Carriers
Germany
New SCHUNCK subsidiary: RMSecur & Consulting GmbH
With the newly founded subsidiary RMSecur, SCHUNCK GROUP, as a market leader, offers
sound and structured risk consulting.
Modern logistics companies not only need tailor-made insurance solutions but ideally also compre-
hensive risk consultancy. Therefo-re, the Munich-based insurance
broker SCHUNCK GROUP foun-ded its subsidiary RMSecur & Con-sulting GmbH in December 2015,
to further extend its risk consulting division. Under the umbrella of the
SCHUNCK subsidiary, the group offers risk management services with a sound methodical basis in
the following fields: business, motor (fleet) and logistics risk management. With this addition, the company is able to optimally analyze, assess and manage its clients‘ operative and strate-gic risks. In the motor vehicle sector, RMSecur & Consulting GmbH could already minimize the incidence of loss by 30 % on the average by means of targeted measures for about 30 clients with 3,000 vehicles in total. With regard to the logistics risk management, RMSecur will launch a
new loss prevention concept for transport, handling, storage and logistics on January 1, 2017.
RMSecur & Consulting GmbH based in Munich is managed by the two SCHUNCK GROUP
managers Albert K. O. Schunck and Rainer Witzel as well as by Reinhard Bohrer, long-term Di-rector of the SCHUNCK Group, Directorate South, and Achim Schneider, Director of the Com-
petence Center for Provision Management. RMSecur, with currently 11 employees, five of which are trained risk consultants, will address its clients‘ risk management needs. „We are thrilled to announce that with RMSecur we can further enlarge our portfolio and can also ade-
quately support our clients with risk prevention. It is our goal to create an optimal synergy be-tween wholistic risk and insurance management“, explains Albert K. O. Schunck, Managing Director of RMSEcur & Consulting GmbH.
Member Information
SCHUNCK Group: www.schunck.de
Contact: Mr. Alexander Kraus, [email protected]
(Source: SCHUNCK GROUP)
James Hallam opens new offices in the UK
James Hallam is expanding its national footprint with the opening of a new office in Birmingham.
The new branch is part of the company's continued growth plans and the addition takes the bro-
ker's network up to eight offices.
James Hallam is now based in the following locations in the UK: London, Watford, Chelmsford,
Ashford, Redhill, Glasgow, Birmingham, Dumfries.
James Hallam becomes Lloyd‘s registered broker
James Hallam Ltd has been handed approval to become a Lloyd’s registered broker, a move in line with its recent rapid growth and expansion of its specialty lines offerings.
James Hallam’s registration as a Lloyd’s broker follows its recent acquisition of Annandale Insu-rance Brokers, as well as its approval as a chartered insurance broker by the Chartered Insurance
Institute.
Becoming a Lloyd’s broker is part of James Hallam Ltd.’s progression to having the widest possible access to the London insurance market and supports our growth ambitions.
James Hallam launches sport division
James Hallam has announced that James Martin, Jon Salmon and Anne Barden have joined the Compa-
ny from Integro to create a new Sport division.
The team have over 25 years of experience in placing complex motorsport and sports insurance risks, and
have transacted Contingency, Liability and Personal Accident business on behalf of many of the highest
profile professional sporting personalities, teams and International sports and motorsports events during their
careers.
Please contact James Martin at [email protected] - for further information or assistance.
Great Britain
James Hallam Limited: www.jameshallam.co.uk
Contact: Mr. Gary Jago, [email protected]
(Source: James Hallam Limited)
Italy
CARE Broker: www.brokercare.com
Contact: Mr. Cristian Novelli, [email protected]
Happy Birthday, Care!
On November 26th, Care celebrated its 15th anniversary. Since we joined the network this year,
for us it is an honor and a reason to be really proud to be able to celebrate our anniversary with
unisonBrokers: our membership is the apogee of a decade-long strategy of internationalization
that is seeing great results, because today we can place insurance products for the most pres-
tigious multinational companies everywhere in the world.
This year, in particular, we saw many developments and
important steps ahead: new employees, the creation of a
truly international network – allowing us to place risks
worldwide – and the inversion of the broker-underwriter
relationship. Nowadays, in fact, it is up to CARE to propose
insurance products, writing and customizing them together
with our clients. We also developed our sales and commu-
nications tools with an internal digital revolution: a new
website, social media and online news are now an im-
portant part of our job and our way of interacting with cli-
ents and the public. The claims department, another key
part, has also been implemented to improve quality and
swiftness in handling documentation and damage liquidation, with the creation of two internal
divisions, for both the Marine area (our specialty) and other risks. Finally, we also enhanced our
internal legal department, in charge of the contractual review for our clients.
Investments carried out in the last few years are now bringing huge results and, quoting our
Managing Director Sergio De Regibus, “as it always happens for the great teams we added to our experience the dynamism and innovative ideas of the new generations”. Strong because of our past, we’re confident for the future and hope that this anniversary within unisonBrokers will
be the first of many!
(Source: CARE Broker)
Alper Services LLC: www.alperservices.com
Contact: Ms. Beth Rooke, [email protected]
USA
(Source: Alper Services LLC)
In Chicago, where large insurance organiza-
tions, brokers and partners pepper the cor-
porate landscape, making room for
“another insurance company” can be a challenge.
There are scores of brokers for businesses to
choose, but the way that anyone succeeds
in Chicago—and quite frankly, anywhere
else—is having a defined point of diffe-
rence, where people, systems, processes
and relationships not just matter, but are al-
so coveted. Recently, Alper Services was
the recipient of two prominent awards,
recognizing that people are just as im-
portant—if not more so—than process.
Alper Services was one of 254 insurance bro-
kers from across the nation awarded a Best
Practices designation from the Independent
Insurance Agents & Brokers of America (the
“Big I”) “Best Practices” Study Group. There are some 30,000 independent agencies
throughout the U.S., thus the company
recognizes how important this award is. No-
minations and evaluations were based up-
on outstanding customer retention, growth,
stability and financial management. Alper
Services is one of only 40 in its size category
nationally to be recognized.
As if that was not enough, Insurance Busi-
ness America named David Macknin, Presi-
dent and CEO of Alper Services, to its an-
nual „Hot 100“ list recognizing the most in-
fluential professionals in the insurance indust-
ry.
“Receiving these sorts of recognitions shows that we have been doing more than a few
things right over the last 50 years,” noted Macknin. “As we constantly look to new ways of optimally serving our Clients, caring
for our Team and growing our business, our
Clients and People can be assured that we
have the right tools and processes in place
to protect them and help them grow.”
Celebrating its 50th anniversary this year, Alper
Services provides comprehensive risk manage-
ment, financial and insurance services, cost
reduction consulting and claim advocacy ser-
vices. Clients around the world have direct ac-
cess to Alper’s Team of Experts who take a col-laborative approach to help Clients protect
their assets, reduce their liabilities and increase
their profitability. Alper partners with the widest
possible range of companies offering innovati-
ve products and solutions tailored to middle
and large middle market firms and organiza-
Alper Services proves its mettle as a top insurance agency among industry giants
Austria
Steinmayr & Co.: www.steinmayr.co
Contact: Mr. Roland Grumiller, [email protected]
Motor vehicle liability in Austria – Regulatory changes regarding sums insured
As of January 1, 2017 the sums insured for motor vehicle liability will be revised as follows:
General motor vehicle liability
Increase of the minimum sum insured from EUR 7,000,000 to EUR 7,600,000
Increase of the sum insured financial losses from EUR 70,000 to EUR 80,000
Motor vehicle liability for buses
Increase of the sum insured for buses with up to 20 seats from EUR 14,000,000 to EUR
15,200,000 as well as EUR 3,800,000 instead of EUR 3,500,000 for 5 additional seats
(mimimum) respectively
Motor vehicle liability for transport of hazardous material
Increase of the sum insured from EUR 28,000,000 to EUR 30,400,000
Market– und Product Information
(Source: Steinmayr & Co.)
France
Groupe SATEC: www.satecassur.com
Contact: Mr. Jérôme Soubaigné, [email protected]
Construction insurance in France
The French system was designed to provide the principal with effective protection against ma-
jor damage that can occur or come to light in the decade that follows completion of the buil-
ding.
The decennial liability also known as ten-year guarantee was imposed in 1978 with the Spinetta
Law.
Constructors - and any other participant to the con-
struction - are fully liable for all material damages to
the works during a period of 10 years after completion
of works, even if it results from a ground defect which
endangers the stability of the works or makes them un-
suitable for the intended use by affecting one of its
components or equipment.
It’s a double trigger system:
Legally mandated decennial liability insurance for constructors. They must be able to prove
that such an insurance has been taken out by them to cover this liability, at the beginning
of the works.
Legally mandated pre-financing insurance for principals (Contractors, Investors or Property
Developers). Therefore, the principal must take out an insurance cover before the begin-
ning of works, in his name or on behalf of succeeding owners, sufficient to cover, inde-
pendently of any pursuit of liability, payment for repair of all such damage.
The decennial cover takes effect at the date of acceptance of the works by the principal. That
acceptance of works is defined by law (article 1792-6 French Civil code).
The notion of EPERS manufacturers
All the manufacturers can be affected by an assumption of liability. The legislator’s aim in en-acting this law is for the manufacturer to be jointly liable in certain cases with the builder.
Note on “E.P.E.R.S” Products
E.P.E.R.S is the abbreviation for “Eléments Pouvant Entraîner la Responsabilité Solidaire” i.e. Ele-
ments Able to Provoke the Connected Liability.
Four cumulative conditions have to be fulfilled:
The design is forwarded.
Special pre-determination for a final specific use
Made to meet with specific demands, determined in advance
Incorporation without any modification
The main consequences
Insurers must be licensed
For example ACE, CHUBB, CNA…. are not licensed for legally mandated decennial insurance.
Capitalization system
The premium of the year (Decennial Liability) and the premium of the works (Dommages
Ouvrage) have to be kept and capitalized by the insurer so as to be able to pay the
claims inherent to the works, for a period of 10 years.
Form wording
automatic clauses, dictated by the law Claims
Claims instruction is legally determined (i.e. timetable for instruction and legal penalties)
All participants must be insured for the global amount of works.
Decennial insurance market
This very exclusive market was originally 100 % French. It is now confronted with the arrival of
new actors: European insurers operating under the freedom to provide services (FPS).
Only a dozen of insurers are active on the market, 3 majors in dominant position (SMA – AXA –
ALLIANZ). The same is true for the reinsurance market where only 5 reinsurers - French, Swiss and
German – are recognized and able to deliver capitalization funds. The cost of the premiums is
high and the underwriting of these insurances is technical and complex, especially for foreign
construction companies coming to work in France.
In accordance with Directive 2006/123/CE of European Parliament, the number of insurance
companies from other member states in the European Economic Area (EEA) authorized to do
business in France under the FPS flourished for a time. Those insurers offer disproportionate pric-
ing conditions and convenient underwriting – they registered spectacular results and growth.
This market opening is beneficial to the consumer. Nevertheless, FPS often hides the creation of
reinsurance solutions in faraway countries that have no competence to deal with capitalization
and they do not accede to the Convention de Règlement de l’Assurance Construction (French
Convention of Construction insurance settlement).
Note that one of these insurers who was the first to enter the French market, GABLE INSURANCE
(based in Liechtenstein) recently went bankrupt and closed: consequently, all companies in-
sured by GABLE are no longer covered for their current decennial risks, and no traditional insurer
wants to take back all these current guarantees.
(Source: Groupe SATEC)
Germany
VSMA GmbH: www.vsma.de
Contact: Mr. Jürgen Seiring, [email protected]
Industry 4.0 and insurance
Industry 4.0 has many advantages, for instance, helping prevent inefficiencies and product de-
fects, fewer machine downtimes as well as predictive maintenance, a better forecast ac-
curacy, lower emissions and fewer waste, with a sustainable use of resources.
However, with the increased use of
industry 4.0 systems and the related
digital networking, a company’s cy-ber risk exposure is becoming higher
and higher. As a result, it is an easy
target for hackers. Furthermore, staff
reduction in IT maintenance positions
and other important operative fields
leads to additional risks. There is no
doubt that also companies that use
industry 4.0 systems need professional
support.
Potential risks are not easy to calculate. „One has only little experience regarding claims scena-rios and related data the insurers could use for their calculations“, explains Jürgen Seiring. Data security and data protection, the risk of data abuse, reputation risks for the machine and plant
engineering industries or even related suppliers and many more should be taken into considera-
tion. These risks are real but intangible and very difficult to quantify. However, we can already
predict that they will be a much greater threat in the future.
The risk landscape is changing. Many cyber claims can be prevented by consulting professional
in-house risk managers. „We are still at the beginning of discussions with machine and plant en-gineers and insurers to create solutions. The traditional insurance products will no longer be suffi-
cient for industry 4.0 systems. We must value the process improvements and develop new suitab-
le insurance concepts“.
VSMA will keep you informed about any new developments and products.
(Source: VSMA GmbH)
F & B modular system insurance
Not only hotel and restaurant operators but also bakeries and butcher’s shops as well as food and beverage shops need special insurance – with specific add-ons.
Württembergische Versicherung AG offers them
exactly the right product to fulfill their needs. The F & B
policy provides full protection based on different mo-
dules being contents insurance, business interruption,
building and liability insurance (business liability insu-
rance incl. environmental liability and environmental
impairment insurance).
The „golden rule“, the update guarantee, the property all-risks coverage as well as the doubled sum insured
for small business interruptions are only a few examples
showing the needs-based arrangement of the F & B policy.
All highlights for the specific target group at a glance:
Update guarantee valid for five years: enables the client to choose the more advantagous cover
Property insurance
Golden rule (replacement-value indemnity for permanent use) for contents insurance
Tables, chairs and parasols in the outside areas are insured against theft and storm, cash mo-
ney under simple lock
Spoilage of chilled cargo: insured up to EUR 5,000 respectively
Precaution insurance increased by 25 % and waiver of underinsurance is possible
Optional:
Expandable electronic all-risks for all existing technical installations and devices
Road haulage all-risks (premium coverage)
For the business interruption insurance, there is usually a doubled sum insured for small business
interruption cases; plant closure is generally included. Business interruption claims are also
possible within the scope of the all-risks element.
Liability insurance
A hotel’s own spa and beauty facilities as well as ninepins and bowling alleys Costs of accidently triggered false alarms (e.g. smoke detectors), including public claims of up
to EUR 5,000 are insured.
Contact: Mr. Rainer Gelsdorf, [email protected]
Württembergische Vertriebsservice GmbH:
www.wuerttembergische.de
(Source: Württembergische Vertriebsservice GmbH)
India
Aditya Birla Insurance Brokers: www.adityabirlainsurancebrokers.com
Contact: Ms. Aditi Babbar, [email protected]
Demonetisation: What does it mean and what is the impact?
Recently on 8th Nov, 2016 the Prime Minister of India announced that the ₹500 and ₹1000 bank-
notes will not be valid from that night onwards. The move to withdraw high-denomination notes
is expected to dent immediate consumption, especially of high-end goods, but will have a posi-
tive impact on growth and inflation in the long run. It also helps in minimizing terror funding by
fake currency by neighbouring states.
In the long term, the economy will benefit from the reduction of black money, which will lead to
higher tax collection, better business environment, less corruption and transparency. Banks are
expected to see large inflows, while inflation could trend lower, helping the interest rates to de-
cline further.
(Source: Aditya Birla Insurance Brokers)
Romania
MAI CEE Insurance Brokers: www.mai-cee.com
Contact: Mr. Ionel Cantaragiu, [email protected]
2016 was an extremely challenging year for all actors of the Romanian Motor TPL market, a year
with significant legislative changes launched by the government, whose sole aim was to bring
the MTPL rates back to a reasonable level, especially those for trucks and buses. The story begins
back in 2015 when the MTPL rates for trucks and buses have faced the biggest increase of the
last 10 years. This evolution has generated big street protests of the truck owners at the end of
2015 and in the first half of 2016, while several strikes have been announced as future actions in
the second half of 2016.
Basically, the MTPL rates jumped from RON 2,000 – 3,000 per unit up to RON 17,000 – 25,000 per
unit in about one year and of course the road carriers could not absorb in their balance sheets
such an increase of costs with insurance, so they reacted impetuously.
On the other hand, the insurers have claimed that the consistent increase in rates was a normal
response to the massive increase of the paid losses (especially the one related to pain and suf-
fering!!) generated by truck and bus drivers, but as always, the truth is somewhere in the middle
because:
During the negotiations, the truck/bus owners could not provide any strong evidence
through which they could prove that the “bad behavior” would change in the future (frequency of incidents, average loss size per incident).
The insurers were not able to prove in front of the regulator that their actuarial calculations
are correctly done, totally out of subjectivities and of erroneous assumptions.
Following the domino principle, the huge pressure put by the truck owners’ associations on politi-cians and the inability of the local regulator to find viable solutions together with the insurers,
have finally prompted the government to take short-term radical measures.
The result was that the government has decided to intervene back in October 2016 and to issue an Emergency Ordinance through which it imposed maximum rates for MTPL insurance. The
most dramatic change can be found with the rates established by law for trucks/buses, which are about 3 times smaller than the usual rates applicable by the local market before the legal
changes took place(!!!). The Emergency Ordinance will be valid for 6 months, which means that
until May 2017 we will have to live with this.
This new law has obviously already provoked protests and complaints filed by the insurers’ and brokers’ associations with the Council of the European Union. The reason for the complaints sub-mitted by insurers and brokers is the fact that the action taken by the government is in big con-
tradiction with the EU laws in respect of free competition, free market, etc.
Romanian Motor TPL market in 2016 – challenging environment or chaos?
As a response to the government action, all local insurers have decreased our commission to
very small levels between 0.10 % - 1.00 %. The clear purpose of such an action was on the one hand to diminish their own losses by moving a part of them on the broker’s balance sheet and on the other hand to cut as much as possible the intermediaries’ appetite for such risks. If we take into consideration that the gross premium estimated in our budgets as renewal MTPL premi-um has been dropped down about 2.5 times by the new law and that the insurers have de-
creased our commission about 10 times (from an average of 10 % to 1 %), we will have the real image of the disaster which in absolute figures means around 25 times lower revenues for a bro-
ker from any truck/bus MTPL renewal which takes place over the next 6 months.
So far, the remuneration model applied locally was commission-based, but in the light of what
happened for the first time in our post-communist history, most of the local brokers have started
to think of charging their customers fees as a compensatory solution to their losses.
However, there are still important questions to be answered by all local brokers, such as “What shall we do with the ongoing clients during renewals? Is it moral to charge them fees or not, or
should we swallow the losses for the next 6 months?”, or “what shall we do with new clients who ask for our services and do not agree to pay fees?”.
Unfortunately, Romania is not prepared to switch the commission-based remuneration system with a fee-based system yet, and for sure we will have endless discussions with our clients on this
topic, but we do hope that with the help of our network partners we will be able to find reasona-
ble solutions for all parties involved.
(Source: MAI CEE Insurance Brokers Romania)
USA
FATCA GUIDANCE - Quick Reference Guide
Disclaimer: This guidance is designed to only give a very high level generic overview of the FATCA process and
should not be seen as a replacement for proper professional advice. BIBA members are advised to seek their own
specific legal/professional advice about the implementation of FATCA to their business.
Introduction
If your insurance broker/intermediary firm is placing any insu-
rance business touching on the United States of America (US) in
any shape or form then you may be caught by a US law desig-
ned to prevent tax evasion. How so? Read on.
The Foreign Account Tax Compliance Act (FATCA) is a US law
designed to combat tax evasion by US taxpayers with offshore investments. The way in which
the FATCA legislation is worded has resulted in certain types of insurance being caught in the
scope of the law.
FATCA legislation is changing with effect from 1 January 2017 with the extension of withholding
obligations to foreign-to-foreign transactions. This means that more UK-based general insu-
rance/reinsurance brokers and intermediaries may fall within the scope of the law as a result if
they are:
• Doing business with US citizens, US residents and US-owned companies holding investments in
accounts outside the US.
• Placing business involving US-source risk premium.
• Placing business for non-US customers with non-US insurers/carriers where some of the risk in-
volved touches on the US eg worldwide travel insurance.
Non-US brokers and intermediaries will be obliged under FATCA to apply a 30% withholding tax
on gross written premiums considered to be US-source risk UNLESS certain documentation is pro-
vided. Money withheld needs to be paid over to the US Internal Revenue Service (IRS). There
are also reporting requirements to the IRS in the event of withholding.
Brokers and intermediaries will need to put in place processes and procedures to comply with
the extension of FATCA withholding obligations to foreign-to-foreign transactions.
Why should my firm bother?
Failure to comply could result in:
• The broker/intermediary becoming liable for the payment of the tax themselves;
• Punitive fines from the IRS;
• Difficulty in obtaining coverage from FATCA-compliant carriers/insurers/brokers; and
• Reputational damage.
Senior Wright Ltd: www.seniorwright.co.uk
Contact: Mr. Eric Ware, [email protected]
What next?
Stage One
First determine the status of your customer and the insurance risk you are placing. Can you es-
tablish whether there is any US connection? Are they a US citizen or resident, or a US company?
Does the insurance you are placing touch on the US in any shape or form?
Effectively premium is defined as being from US source risk if it relates to:
• US property;
• Liability arising out of an activity that take place in the US; or
• Is in connection with the lives or health of US residents.
If you can establish that there is no US connection for the client or the risk then process the risk
as you would normally.
Stage Two
If you can identify that there is a US connection then that business is likely to be caught by the
FATCA legislation and you will need to comply with its requirements of obtaining relevant docu-
mentation (so-called W-forms or withholding certificates). The provision of a W-form will allow a
firm to certify that it is FATCA compliant.
You will need to verify the FATCA status of insurers involved in the transaction and other brokers
between you and the insurer (if a chain exists). Ask the insurer/carrier for their W-8BEN-E form (it
might be their tax department that holds this form, or it might be their compliance or operations
unit, it could be located on their website). Note: Lloyd’s has agreed with the US Internal Reve-nue Service that a single W-8IMY form will be sufficient for FATCA purposes to cover insurance
premiums paid to syndicates and syndicate-level trust fund assets (this form can be accessed
on its website).
Wholesale brokers should provide you with a W-8IMY form.
Larger, well-known, international insurance brands may have already addressed FATCA com-
pliance as their business may have been caught by the law since 2014.
Stage Three
Complete your own form about your FATCA status, to prove that you too are compliant. In the
case of an insurance broker/intermediary this is likely to be a W-8IMY form. These can be down-
loaded from the IRS website along with instructions about how to complete the form:
https://www.irs.gov/pub/irs-pdf/iw8imy.pdf - Instructions for filing form W-8IMY
https://www.irs.gov/pub/irs-pdf/fw8imy.pdf - Form W-8IMY
As a broker when completing a W‐8IMY form you will need typically to complete parts I, XXV or
XXVl (some firms may fall into a different category and firms may need to seek their own advice
on this aspect) and the certification confirming their FATCA status (ie as defined in Chapter 4 of
the Act). In the case of the majority of insurance brokers this status is likely to be an ‘active Non-
Financial Foreign Entity’ (active NFFE) or a ‘passive Non-Financial Foreign Entity’ (passive NFFE). The difference being that an active NFFE is one where in excess of 50% of income is active (eg
commission and fees) and 50% of assets do not produce income. An entity quoted on a recog-
nised stock exchange is considered active. If this test is failed, the entity is passive and has additi-
onal disclosures.
Be ready to provide your W-8IMY if requested by another broker/intermediary/carrier in relation to
a particular transaction or if you are part of a distribution chain.
Once completed, you may want to put your W-8IMY on your firm’s website so other firms can ac-cess it more easily. Remember to update the form if there are any changes in your circum-
stances.
Remember: if you have all the requisite FATCA documentation relating to a risk and the entities
involved with it in place then you will not be required to withhold. This means that you will not ha-
ve to report to the Internal Revenue Service either.
FATCA has worldwide implications, so if your firm operates in other countries you will need to en-
sure that the entities that you are dealing with in foreign markets are also compliant. Be aware
that other countries are in different states of FATCA preparedness to the UK market.
Stage Four
If you are a retail broker in touch with the customer you are required to provide them with copies
of the relevant FATCA certification documents. Your firm will need to keep copies of this docu-
mentation.
Our unisonBrokers Corp. team will be pleased to answer your questions:
[email protected] oder [email protected].
(Source: British Insurance Brokers’ Association)
Changes in taxes and contributions
UK insurance policyholders are facing further increases in the cost of their insurance as a tax rate
affecting millions of policies is set to be increased this year.
The UK Government announced in the Autumn Statement that from June 1, 2017 insurance pre-
mium tax (IPT) will increase from 10 % to 12 %.
The tax affects the cost of new policies bought by a wide range of insurance customers, includ-
ing those buying home insurance, motorists, private medical insurance customers and pet own-
ers.
This is the third consecutive increase in the tax having risen as recently as October 1, 2016, when
the rate was raised from 9.5 % to 10 %. That increase followed a previous rise from 6 % to 9.5 %,
which came into effect on November 1, 2015.
France
Diot Est: www.diot.com
Contact: Mr. Alfred Mattern, [email protected]
Tax Alert: Terrorism contribution to increase to EUR 5.90 in 2017
The French contribution to the Common Fund for Victims of Terrorism (Fonds de garantie des vic-
times du terrorisme FGTI) will increase from EUR 4.30 to EUR 5.90 per contract from January 1,
2017.
The Terrorism Insurance Fee will increase from EUR 4.30 to EUR 5.90 per policy. It is applicable for
about 87 million property damages policies including Automobile and Household polices and should generate about 140 supplementary million € per year for the Guarantee Fund for Terror-
ism Victims (Fonds de garantie des victimes du terrorisme FGTI).
On January 1, 2016, this tax had already been increased from EUR 3.30 to EUR 4.30.
Due to the latest terrorist attacks in France, it was necessary to extend the fund.
Created in 1986, this Fund collected about EUR 300 million per year. Until 2014, the paid indemni-
ties for terrorism victims were less than EUR 5 million per year for 4 000 victims from 1986 to 2014. The last 2 years, the Fund has been solicited the most for the attack of November 13, 2015 in Par-
is as well as for the attack of July 14, 2016 in Nice and will pay EUR 300 – 350 million per event.
Finally, the French Government will act as guarantor in case of exhaustion of the Fund.
The Fund has also been asked by the state to work on an “indemnity scale” for the victims to standardize their compensation.
Great Britain James Hallam Limited: www.jameshallam.co.uk
Contact: Mr. Gary Jago, [email protected]
(Source: Diot Est)
(Source: James Hallam Limited)
Further increase of IPT
Independence Day 2017
Conferences & Events
REGISTER NOW !
12th unisonBrokers INDEPENDENCE DAY CONFERENCE 2017
June 7 – 9, 2017
BERLIN, GERMANY
Hotel Adlon Kempinski
Unter den Linden 77, 10117 Berlin
Independence Day 2017 – Registration is now open!
Get registered for our next unisonBrokers Independence Day Conference 2017 in Berlin!
In 2017, after our memorable conference in the fascinating city of Porto, we invite you to ce-
lebrate the beauty and the unique spirit of the German capital – Berlin.
You can expect two full days of interesting conference program designed to inspire and edu-
cate on the future trends of our industry. Alongside expert presentations, workshops and panel
discussions, the upcoming conference will offer you the unique opportunities to network with
more than 200 brokers and insurance specialists from all over the world. Exclusive events in
breath-taking locations as well as the fascinating scenery and the vibe of the German capital
will make the upcoming unisonBrokers conference an unforgettable experience.
For your accommodation in Berlin, we have chosen the most exclusive hotel of the German ca-
pital. Located directly at the Brandenburg Gate and just a few steps away from the German
Reichstag, Adlon Kempinski Hotel is a living legend of Berlin, which will ensure a truly unforget-
table stay.
More information on our official conference hotel Adlon Kempinski is available on the next page
of this unisonTimes edition.
Please kindly note that registration for IDC 2017 is currently open and will close on
April 1, 2017, at 6:00 p.m. (CEST).
Participants can register online via registration form available on our official IDC homepage at
http://idc.unisonbrokers.com.
Should you have any questions or require further details on the registration or the program, plea-
se do not hesitate to contact our team.
We look forward to meeting you in Berlin!
Our conference hotel
Located in the heart of the city and directly at the Brandenburg Gate, our official conference
hotel of IDC 2017, Adlon Kempinski Hotel, is a living legend of Berlin. Being regarded to the be
the most famous hotel and one of the most beautiful hotels of Germany, Adlon looks back up-
on a long and amazing history dating back to 1907.
You can expect an extensive range of five-star services provided to ensure your visit to Berlin is
a trip to remember, from incredible city tours to luxury limousine and concierge services – the
dedicated staff of the Adlon Kempinski Hotel go the extra mile to meet every one of your ex-
pectations.
Choose to stay in one of Adlon’s elegant guest rooms or pick from 13 different suite types all with beautiful views of Berlin. As well as an extensive spa offering, the hotel has two stylish bars
and three refined restaurants for guests to enjoy.
Rooms & Suites
Deluxe Room
With about 40 sqm, the Deluxe Rooms offer luxury and style. With all the amenities this room of-
fers and the location in the calm courtyard, it is the perfect spot for business travelers. High-
speed Internet, a desk and a laptop-size safe offer a wonderful workplace in the middle of Ber-
lin.
Room features & amenities
Laptop-size safe
Flat-screen TV
Working Desk
Entertainment center
View: street or inner courtyard
Decor: Classic
Beds: King or Twin
Extra Bed: One extra bed allowed
All prices include breakfast and VAT. Suites are available upon request.
Room Category
Single Occupancy
Double Occupancy
Deluxe Room
€ 220.-
€ 250.-
Hotel facilities at a glance:
Fitness center, pool and spa area
Business center
High-speed Internet access
Several different restaurants and bars
Club Felix
Lorenz Adlon wine store
Limousine service
Concierge and butler services
Hotel Adlon Kempinski*****
Unter den Linden 77
10117, Berlin
Germany
www.kempinski.com/de/berlin/hotel-adlon/
Melinda Keller, Jenny-Annett Kubina, Olga Hoffmann,
Gunda Stichbury, Polina Balko
Ihre Neuigkeiten, Ideen und Anregungen nehmen wir gern entgegen:
Website: www.unisonbrokers.com
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Disclaimer: Information appearing in unisonTimes™ is checked for technical accuracy but is not intend-
ed to provide a basis of knowledge upon which advice can be given. unisonBrokers accepts no responsi-
bility for any loss occasioned to any person acting or refraining from action as a result of the material in-
cluded in this newsletter.
unisonBrokers AG
Cremon 32
D - 20457 Hamburg
DEUTSCHLAND
Tel: +49 (0)40 80 90 729 0
Fax: +49 (0)40 80 90 729 99
unisonBrokers Corp.
200 S Wacker Drive, Suite 3100
Chicago, IL 60606
USA
Tel: +1 (312) 6744939
Fax: +49 (0)40 80 90 729 99
Editorial Team