Mar
30
2010
Steve has left with the team on the first leg of their trip to the North Pole. Here he’s at Heathrow, with his kit. He’s currently stuck on Baffin island waiting for a blizzard to die down at Resolute, which is where the trek starts. They’re hoping to fly tomorrow.
You can track his journey through the magic of GPS here
Mar
16
2010
When the iPhone was first launched the most popular app was the Carling lager app, which looked just like a pint in a phone. Lacked a little in taste, though.
Today we found a far better and more realistic alternative. Real beer - and free!
There’s an app called Voucher Cloud, which uses your GPS position to find any offers in local bars, restaurants and shops. Young’s are doing a free pint of Young’s bitter - all we had to do was to show the electronic voucher to the young lady serving, as Steve is doing in the pic, and she provided us with free ale.
Technology continues to amaze and delight…
Mar
7
2010
Three weeks today we fly out of Heathrow terminal 3 to Ottawa. If I said I wasn’t nervous I would be lying. I really am not looking forward to saying goodbye to my family, 5 weeks away from them is a long time. When I have been on a trip to Hong Kong to see clients that is normal two weeks and that’s tough, and at least when I do that we can speak on the phone or via Skype and see each other. Doing this once we leave Resolute Bay there is no possibility of speaking. We are taking satellite phones with us, but these are for checking in every two days and for emergencies. I think some tears will be shed when I leave home, at the moment I am not saying by who, my wife, my daughter my son or me. My money is on all four.
The first week is meant to be the worse. during that time we will face most of the ice rubble and the dragging of the sledges of that will be tough. Also getting used to the temperatures and the routine of getting the tents up and down as quickly and efficiently as possible. During that week if I don’t wish I was anywhere else than where I am a 1,000 times an hour I will be surprised. After the first week, I hope the going gets easier.
The only benefits I can think of with home no knowledge of what is happening in the world, is I won’t have to put up with all the party political broadcasts that will be happening and I won’t be around to see Southend United get relegated, which does now seem a certainty.
Mar
4
2010
It’s nice to see our clients in the Press. Here’s James Gerry, CEO of Thistle Underwriters, talking about the recent announcement that JLT are backing their non-advised business into the Thistle structure in Insurance Age
Also, here’s the mention of Thistle’s new underwriting system, based upon the TO product set, again in Insurance Age
Thistle have put a huge amount of effort into creating something unique in the market - it’s good to see it paying off.
Mar
2
2010
We were at the England v Ireland game at the weekend entertaining some guests. The final score was a little depressing for most of our party, apart from a Welshman who thought it a fine result.
A far better result was the hospitality, which was provided by Allan Lamb, the former England Cricketer, and his wife Lindsey. We’ve been using the Lambs for a couple of years now, and they absolutely hit the spot. The have a pitch in the Cardinal Vaughn car park, from which they provide an endless stream of excellent food and drink.
We used to use a smart hotel in Richmond, but the Lambs provide a far superior alternative, more in fitting with the occasion. It doesn’t hurt that Allan used to play for Northants, either!
Mar
1
2010
It is amazing how many people still refer to the administration of outwards reinsurance as a bit of a dark art. One area that could fit this description is how the precedence sequence for excess of loss contracts should be decided. As we are all aware, one of the fundamentals of insurance is that you cannot over recover and, as such, where reinsurance has the potential to do this there must be benefit rules, which by default define the precedence sequence.
Unfortunately, it is still common to come across reinsurance technicians who decide the precedence sequence on an event by event basis in order to maximise the recoveries. If the reinsurers were aware that it was down to the technician as to whether they were liable or not, what action would they be taking? It also makes it difficult to automate the recoveries without intervention by the technician each time a new event is processed.
One example of a simple situation is where a contract has a loss warranty. The normal rule is that the contract with the larger loss warranty benefits the contract with the smaller or no loss warranty. If, however, the contract with the larger warranty has a wider scope in terms of the accounts (lines of business) protected, the normal rule would be that the contract with the narrower scope benefits the contract with the wider scope. This simple situation is often easily resolved but there can be more complex situations.
Also, because these contracts are only being looked at when there are claims, the underwriter and broker who designed and placed the RI programme are no longer available to ask. This underlines how important it is that with an outwards reinsurance system all the rules are captured each year as the reinsurance programme is entered into the system; the benefit rules and, as such, the precedence sequence are defined and the programme tested using realistic data scenarios.
Feb
26
2010
It’s that time of year, just after Christmas when we are thinking about that trip abroad and wanting to be a decent weight, for it. Never before has this really been a problem for me. If I have been training for the London Marathon, I have given up alcohol on New Years eve and not drunk again till after the race. My weight has been between 65 -67 kg at the time of the race. I am sure some-one has done statistics on it that if you weigh 5 kg more than your ideal weight and your stride is 2 metres over the course of the race that you carried an extra 105,000 kg or some such fact, so I have always been around my ideal weight.
After Christmas this year my weight was 70 kg, so not to bad, at normal times but awful if you are going to the North Pole and having to survive on 2,500 calories a day when you will be using 6.500 to 8,000 a day. I have been told I will loose around 15 Kg. I just don’t know where from, so serious eating and drinking required ( no dear I am not down the pub I am training).
After coming back from a business trip to Hong Kong in mid January my weight was 72 Kg, so putting it on slowly. Weighed myself last week and I was 71.5 Kg, this putting on weight lark just isn’t working. It could have something to do with getting up at 5:10 every morning, and going to the gym for an hour. Its a routine I have had for about 15 years now and just don’t want to stop. More lunches are required then.
Simpsons Tavern is a bit of a favourite at the moment, a good rump steak, egg on top, a sausage with a bit of bubble and squeak with some extra vegetables, washed down with a couple of pints. As the office is close to Brick Lane, Peter Dunkley insisted that we went for a curry last Thursday. After walking past a couple of empty restuarants we tried a place that was a buffet style. After starts I went round the main course’s twice then a bit of dessert. Peter had to roll me back to the office I felt so bloated. I do though think I will try and make this a regular Thursday event, down Brick Lane for a Ruby Murray. I will be trying to get up to around 80 kg by the time I go, so support on my eating and drink is always welcome.
Feb
22
2010
Steve Kidwell of Total Objects Training for the North Pole
So on with shorts a T-shirt and a long sleeved T-shirt over the top, groans from my wife of “are you mad?” and off for a run. A mile from my house down Thorpe Bay Boulevard, to the seafront Pavements are a bit icy but not too bad. On the seafront a there is a breeze, which seems to be into my face as I run towards Chalkwall. There are quite a number of runners out even though its raining lumpy rain. Most of them seem to have more kit on than I will be wearing on the expedition to the Pole. So its inevitably I got a few strange looks as my now bright red legs go past.
Its not long before I am sweating, as I have this terrible habit of not being able to just jog, if I see another runner I have to try and get past them. What starts out at a gentle 8 - 9 minute mile pace, so turns into a 6 1/2 - 7 minute mile run. I seem to see it as an affront to my running ability if anyone goes past, at one stage the pace was even quicker than 6 1/2 minute mile pace as I caught and overtook a cyclist, who didn’t like this and tried to get back in front. We went side by side until the cycle path finished.
I turned round at Chalkwall station and headed back towards Thorpe Bay and again the wind to be in my face, how does that happen, whichever way I go I seem to be running into the wind?
I got home hot sweaty and in need of a shower. As I opened the front door, I wasn’t met by the normal blast of hot air. My wife is a hater of the cold and has the heating up to tropical temperatures most of the time. This could only mean she and the children weren’t up but no, she is sat in the dining room with a gas fire on, wrapped in a blanket. The boiler has stopped working, so no central heating or hot water.
By the look on her face it must be my fault. I’m not entirely sure how, but clearly it must be. Luckily the shower is electric, and I could have a quick hot shower, before phoning the gas board. We have the boiler covered and they have said they will be here Sunday afternoon between 12:30 and 6:00. I do hope they can get it started again, not that I am feeling the cold from the weather - more the cold looks from my wife.
Feb
18
2010
£10 of Quality Sporting Entertainment
As most everyone is aware the new Wembley Stadium and cheap are not normally synonymous, with the total cost of the build project being estimated to be £1 billion, the cost of a Club Wembley gold seat is a one-off 10-year-licence payment of £8,885 + £3,495 per annum, which provides you with all England senior games, Charity Shield, Carling Cup, FA cup and Rugby League Cup games played at Wembley – it probably works out to be an astonishing £400-£500 per game.
For those of you who have not been to Wembley or have children who you would like to take, there is a cheaper alternative to experience Wembley and especially the joys of Club Wembley. Anyone passing through Liverpool Street station and using the Bishopsgate underpass would probably not have failed to notice the billboard advertising the Premiership Rugby Union game at Wembley between Saracens and Worcester on Saturday 13th February 2009 with tickets from £10.
I have some very good friends who support Worcester and five of them duly arrived at my house in West London on the Saturday morning; after breakfast, we set off taking the 83 bus, which drops you at Wembley Park Station in order that you can have the experience of walking up Olympic Way. First stop was the ticket office, where six £10 tickets were ordered; we had no idea where these tickets would be but on inspecting them we discovered our entrance was to be Club Wembley East which takes you into the Club Wembley Concourse (level 2) normally entirely dedicated to Club Wembley seat holders. Our seats, wider and padded with armrests than the general admission seats, were probably of the Gold standard being fairly close to the half-way line. The Club Wembley concourse is a delight, roomy and with more facilities for eating, drinking and relieving yourself than most self-respecting grassroots supporters of sport would find decent, with hardly a queue to be seen and great views over London.
The game was enjoyable not quite up to the standard of the Wales v Scotland affair but certainly eclipsed the torrid England performance against Italy the next day, and probably more exciting than a lot of the England senior football games. The game hinged on a dropped try-scoring pass by the Worcester full-back Latham late in the second half, Worcester were in the lead at the time and this try would have probably sealed them a victory but, from the dropped ball, Saracens raced the 80 meters to score a converted try and duly won the game.
All in all it was a fabulous day out which, including £20 pounds into the beer kitty, a very fine curry afterwards and the travel, cost under £50 – a bargain.
TO might well be doing some corporate hospitality next time the Saracens are at home at Wembley!
Feb
17
2010
One of the more difficult aspects of providing outwards reinsurance administration systems is the calculation of reinstatement premiums. The basic concept is very straightforward and certainly calculating the reinstatement premium for the contract is, but, in my experience, the difficulty is that most of our clients want the reinstatement premiums to be calculated by event.
If we take, for example, a simple excess of loss contract where the recoveries are made on a losses-occurring-during basis (LOD) and there is one reinstatement. There could be three events in chronological order that can make recoveries from that contract A, B and C. If event C has claims that are processed first and makes a partial recovery, the corresponding reinstatement premium costs will be attributed to event C but as A and B make recoveries, event C would be refunded. Should the reinstatement premium be reattributed across the events now making the recoveries? Some say yes whereas others will say no. We end up with the situation where, although the contract is LOD, the reinstatement premium is handled as if on a settlement basis.
The problem can also be illustrated with the same contract and events. Event A makes a total recovery and all the reinstatement premium is attributed to event A. Event B then makes a partial recovery. However, event A has a claims refund and half the recovery disappears, event B remains the same and event C makes a partial recovery.
The problem is not too bad as long as the reinstatement premium costs are increasing but, if recoveries are to be refunded and, as such, paid reinstatement premium needs to be recovered, the calculation of the reinstatement premium can become complex especially where the reinstatement provision provides reinstatements at different percentages e.g. 1 free, 5 at 100% and 1 free.
The problem where events start refunding also applies to contracts that are processed on a settlement basis.
The simple way (and probably the correct way) to calculate reinstatement premium is by the contract ignoring any distribution by event and this is the method that most brokers will use. (This also leads to another problem in that the distribution by currency of the reinstatement premium can be different when the settlement basis by event is adopted.) Each time, the total reinstatement premium is calculated to the contract and by deducting the prior reinstatement premium gives the due premium this time. The reinstatement premium could then be distributed across the events making the recoveries and although this wouldn’t reflect the settled basis it would at least mean that the costs were always attributed to the events making the recoveries and the currency distribution would always agree with the brokers.