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5. News from the Working Parties
MOTOR INSURANCE WORKING PARTY
Adapted from a report delivered to the AIDA Presidential Council at a meeting held in London on 19 May 2004
The Motor Insurance Working Group (“MIWG”) has four studies currently in progress: the completion of the enquiry on the Normative and Management Characteristics of Motor Third Party Liability in the World; the Development of Studies on Compensation Trends of Non Pecuniary Losses; the Protection of the Victims with Particular Reference to Weaker Parties; the Analysis of Fraud Within the Insurance Sector and the Undertakings Which Exist to Counter Them.
The main study of this Working Group which compares compulsory Motor Third Party Liability insurance in 170 countries, has been summarized in a 50 page volume which provides an international comparison of the regulations and market procedures. The Report also contains a statistical analysis based on a number of key factors such as gross and per head GDP; the current circulating auto fleet; the road circulation density; and the commercial-private vehicle ratio. It is currently being updated and by the end of this year should be published and distributed to AIDA’s National Sections, professional insurance associations, control authorities and Universities.
At present, the other three studies have a European dimension. Questionnaires have been distributed to extra European Sections in order to broaden the comparison. The replies received, however, are limited in number and it will be necessary to devote more attention to increasing the number of responses.
At the meeting held in Brussels in December 2003, all participants agreed to create working sub-groups on an extra-European regional base, to increase involvement in the Group's activities. The President appointed Dr Patricia Jaramillo Salgado from Bogotá to maintain contact with the South American sections and in this respect Dr Jaramillo has reported that she has already received replies from the Argentinean and Paraguayan Sections, in addition to responses to the aforementioned questionnaires. Meanwhile, Dr Lamia Alami from Casablanca has been appointed to maintain the same contacts with the Arabian Countries.
The President of the Working Group is Dr. Armando Zimolo (Assicurazioni Generali, Italy). Vice-Presidents are Dieter Pscheidl (AVUS, Austria) and Jan Misana (Insurer's Institute on Personal Injury, Netherlands). The countries represented within the Standing Working Committee of MIWG are Argentina, Austria, Belgium, Bulgaria, Colombia, France, Germany, Hungary, Italy, Morocco, Norway, Netherlands, Tunisia, Romania, Spain, Sweden and the UK. Not all participants attended the last meeting and so attempts to renew contact with some representatives are in progress with each National Section. The Kenya, Philippines and Singapore Sections have also been asked to nominate their representative in the Standing Working Committee and attempts are underway to appoint a representative from the insurance market of the People’s Republic of China.
The Working Group produces a bulletin which is published every six months. It gives an account of the Group meetings, information on recent trends and developments occurring at an international level in the sector of Motor Third Party Liability and publishes some jurisprudence articles. The bulletin is edited on behalf of the MIWG by an editorial office based in Rome at Assicurazioni Generali. The next bulletin was to be published in June 2004, focusing on the impact of EU directives on the ten new countries admitted into the European Union on 1st of May.
Major events of the last few months included the enforcement of the compulsory motor third party liability insurance legislation in Russia and Saudi Arabia. This raises the number of countries implementing compulsory regimes to 145. It is also important to mention the introduction, in 2003, of driver-licence points in Italy and Ireland, which has prompted a significant reduction in accidents.
Those topics will be analyzed by the Group in the next meeting, which will be held to coincide with the next Presidential Council meeting on November 11-12, in Madrid.
Armando Zimolo
Italy
REINSURANCE WORKING PARTY
The AIDA Reinsurance Working Party met in London on 19 May 2004, at the offices of Barlow Lyde & Gilbert. Simultaneous English-Spanish interpretation of the meeting was provided throughout the meeting which was chaired by Colin Croly.
Chairman of the Reinsurance Working Party, Colin Croly (right), chairs the May 2004 meeting, alongside Professor Robert Merkin, the Reinsurance Working Party Secretary (left)
Reinsurance Working Party Questionnaires & Reports
The Working Party has, to date, published responses to three Questionnaires in the form of Reports. The first of these, published in 1997 was entitled, ‘What is Reinsurance?’ It had been agreed at a previous meeting that the Working Party would update these published Reports and, consequently, the redraft of questionnaire number 1 was circulated by Professor Robert Merkin. Professor Merkin explained that the redraft contained additional material on Alternative Risk Transfer. The deadline for responses to the redrafted Questionnaire would be 1 October 2004.
It was further agreed that the redrafting of Questionnaires 2 and 3 (‘Follow the Settlements’ and ‘The Proper Law of Reinsurance Contracts’) would be finalised in time for redistribution at the next Reinsurance Working Party meeting. Questionnaire 7 (on Reinsurance Intermediaries) continues to be on hold, pending the implementation of the EC’s Mediation Directive. Tammy Greenberg updated the Working Party on responses received to Questionnaire 8 (Limitation Periods in Reinsurance). Questionnaire 9 (Insurer and/or Reinsurer Insolvency), for which the Argentine Chapter are Reporters, was discussed. It was agreed that the Reporters would consider comments and hopefully a final questionnaire will be circulated shortly.
Flyers advertising the sale of Reports 4, 5 and 6 on ‘The Meaning of Event and Similar Phrases in Reinsurance Contracts’, ‘Evidence of Custom and Practice in the Interpretation of Reinsurance Contracts’ and ‘Cut-through and Transfer/Reconstruction Issues’ respectively, were distributed. Colin Croly thanked Marlene McConway for her hard working in organising the design of the Reports. Colin Croly requested that he be kept informed of any forthcoming colloquiums at which further flyers could be distributed. Please click here if you wish to access the flyer.
In response to the Spanish National Chapter’s request for a Spanish translation of the Reports, costing information had been obtained and was presented to the Working Party. The cost of translating Reports 4, 5 and 6 would total approximately £4,500 (including Value Added Tax), excluding printing costs.
There followed a discussion of the possibility of publishing a consolidated version of all Reports. It was agreed that it would be a good long-term plan to produce a folder to hold all the Reports.
Possible ideas for new questionnaire topics were discussed. Lars Mølgaard and Rose-Marie Lundstrom volunteered to produce a draft questionnaire on commutations for the next meeting. Dick Kennedy volunteered to produce a draft questionnaire on bad faith/utmost good faith. If this draft proves to be too long, then the Working Party will consider splitting it into two questionnaires.
Presentation
A presentation delivered by Nigel Rackham of Pricewaterhouse Coopers on Reinsurance Insolvencies from a UK perspective, covered recent changes made in the UK to, and the respective merits and uses of, various insolvency procedures recognised by the law. A lively round table discussion followed with members of the group sharing experiences from their own jurisdictions.
The Next Meeting
The next meeting will be held in Madrid on 11 November 2004. Colin Croly suggested arbitration as the presentation topic. A full agenda and details will be circulated and posted on the AIDA website shortly.
Report on the AIDA Reinsurance Working Party Reports 4, 5 and 6
When the Reinsurance Working Party was established, over 10 years ago, one of its goals was to produce a comparative study into Reinsurance Law worldwide, drawing on the experience and knowledge of the members of the Working Party. It was decided to circulate questionnaires on key areas in Reinsurance Law, with the editor drawing all of the responses together into the Report, which would be commercially published.
To date, three reports have been published; “What is Reinsurance?” edited by Robert Merkin; “Follow the Settlements” edited by Robert Merkin; and “Proper Law of Reinsurance Contracts” edited by Barlow Lyde & Gilbert. The Reinsurance Working Party has now completed a further three Reports, entitled: “The Meaning of ‘Event’ and Similar Phrases in Reinsurance Contracts” edited by Michael Mendelowitz; “Custom and Practice” edited by Katherine Posner; and “Cut Through and Transfer Reconstruction Issues” edited by Michael Gill and Andrew Toland. These Reports are very close to being published by the AIDA Reinsurance Working Party and will be available in Autumn 2004.
This will be the first time the Reinsurance Working Party has undertaken the task of publishing the Reports itself. The major advantages of bringing the publication ‘in house’ is that we can offer the Reports for sale at cost, so that these important studies can reach the widest audience through AIDA worldwide, and beyond to the wider legal community. This is made possible by Barlow Lyde & Gilbert, who have undertaken the task of producing the Reports on behalf of AIDA, and by the editors’ firms (Barlow Lyde & Gilbert, Condon & Forsyth and Phillips Fox) who have all agreed to underwrite the printing costs of their respective Reports. Further, AIDA is indebted to the Spanish National Chapter who have generously offered to financially assist with the translation of the Reports into Spanish.
For further information on the three forthcoming AIDA Reinsurance Working Party Reports and access to the order form, please click here. For further queries regarding the Reports, please email aidaworld@btinternet.com. If you would like more information about the AIDA Reinsurance Working Party generally please contact its Chairman, Colin Croly (aidaworld@btinternet.com).
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