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A temporary pool of funds should be created to subsidise the rising costs of flood insurance to consumers, according to the actuaries’ lobby group.

Actuaries Institute CEO Melinda Howes has called for a pool “to subsidise the high insurance premiums of people living in disaster-prone areas”.

“A national pool could also help those people who are not in flood areas but have seen premium increases,” she said.

The institute does not favour direct government subsidies to policyholders because it results in the money going straight to insurers, “providing no incentive for households or local councils to manage their own risk exposure”, Ms Howes said.

“It’s vital that any subsidies provided from the pool are conditional on policyholders and local councils taking action to reduce the risk of damage from flooding, such as carrying out the appropriate property renovations and building levees in high-risk areas.”

The actuaries’ call for a pool is in direct contrast to the stance by the Insurance Council of Australia (ICA), which says short-term direct government subsidies are the best mechanism.

ICA CEO Rob Whelan says a flood pool would only create another layer of government bureaucracy.

In a statement last week he reiterated the basis of ICA’s July submission to the Natural Disaster Insurance Review, proposing direct subsidies to owners of high-risk properties that would taper off after several years.

“We believe the first homebuyer’s grant scheme is an appropriate guide,” Mr Whelan said. “Policyholders and taxpayers

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Michigan recently passed a law that prevents public entities from providing health insurance for the same-sex domestic partners of employees. The ACLU is fighting this law on behalf of school teachers and city and county workers whose domestic partners will lose their health insurance coverage as a result of this law.

It has become a controversial topic. Should employees of public institutions, (such as teachers, postal workers, and other city or county workers), be allowed to have their domestic partners covered under the employee’s health insurance?

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The business outlook is for more gloom next year, judging by reports from trade credit insurers who point to rising insolvencies here and the ongoing crisis in Europe as indicators of a tough year ahead.

Atradius MD David Huey says there is still pressure on rates, and he feels there is a disconnect between “what we read in the papers and the perception of risk in our market”. 

“It is almost as if we feel a bit divorced from what is happening in Europe and the US,” he told insuranceNEWS.com.au.

National Credit Insurance (Brokers) MD Kirk Cheesman says claims have been steady in the last quarter, although he notes the Australian Securities and Investments Commission (ASIC) has reported an 18% rise in insolvencies in the September quarter.

Trade credit insurers expect to see more claims in the April-June period, from businesses that have struggled to maintain cashflow over the summer holiday period.

Mr Huey says retail continues to struggle but construction seems to be recovering. Atradius

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In the past few years, the United States has had a record number of people who were unemployed. Now that we are in the holiday season, you can expect there to be an even bigger emphasis on the number of Americans that are unable to find employment. How much do you know about how unemployment insurance? Take this quick quiz, and find out!

Everyone who is unemployed automatically gets unemployment insurance benefits. True, or False?

False! According to the Economic Policy Institute, only around two-thirds of the 14 million Americans who are unemployed are actually receiving unemployment benefits.

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Fears about a withdrawal of major insurers and reinsurers from the New Zealand market are misplaced, according to Vero NZ CEO Gary Dransfield.

He told the Trans Tasman Business Circle in Auckland last week while there’s conjecture about the industry’s future following the Canterbury earthquakes, the future for the industry in New Zealand is very promising.

Mr Dransfield says insurers are reassessing their businesses, “not to withdraw but to build stronger, more sustainable businesses”.

He also called for a sustainable earthquake insurance approach in New Zealand built around the country’s Earthquake Commission (EQC).

He says the commission should have a wider role in the future to ensure an approach that is commercially feasible, affordable and capable of coping.

“I believe the EQC should remain pivotal for any future earthquake insurance model,” he said. “To do that t

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