News in Brief: Rockers settle multi-million dollar insurance dispute

by Maryvonne Gray 17 Nov 2014

News in Brief: Rockers settle multi-million dollar insurance dispute

Rockers settle multi-million dollar insurance dispute
The Rolling Stones have settled a dispute with their insurers over a $16 million claim they filed over their postponed Australian and New Zealand shows.

The group had taken out the policy which would pay out in the event of death of any band member or that of their close family which included Mick Jagger’s girlfriend of 13 years, L’Wren Scott, but were refused by the insurance company, reports Associated Press.

The underwriters said it was a real possibility that Scott was suffering a pre-existing mental illness and her death might not be covered under the policy, and that Jagger should have known it was a possibility she might try and take her own life.

Jagger was also “diagnosed as suffering from acute traumatic stress disorder” after her death and was advised not to perform for at least 30 days, according to documents filed in the court case.

Scott’s family branded Jagger as ‘heartless’ for pursuing the claim saying he had opened up old wounds.

“The guy doesn’t need the money. I laughed when the insurance company turned down his claim,” said Scott’s brother-in-law Rob Shane.

“All the s*** that Mick is claiming about being unstable, it’s ridiculous he’s trying to get his way. In a way, I’m not surprised he’s doing it. The guy is just unbelievable.”

A spokesman for the band said the rockers were ‘deeply upset’ that confidential medical and other private information had entered the public domain.
 
Three new members for FMA’s Code Committee
The Financial Markets Authority (FMA) has appointed three new members to the Code Committee for Authorised Financial Advisers (AFAs).

Professional financial advisers Martin Hawes and Stephen O’Connor join legal and financial services governance expert, Melanie Biss, as the committee’s newest members. The existing members are Ross Butler, Shane Edmond, Professor Dimity Kingsford-Smith, David Russell and Gary Young, led by chair David Ireland.

Butler, Edmond and Professor Dimity Kingsford-Smith agreed to extend the duration of their terms.

CEO of the FMA, Rob Everett welcomed the new appointments, recognising the deep industry knowledge and individual skills they will bring to the Committee, further adding to the existing expertise and diversity of the members.

“Martin, Melanie and Stephen will be great assets to the team and ensure the Committee reflects the make-up of the sector as a whole, while bringing fresh ideas and experiences to the table. I’m confident the committee is now well-equipped to continue its work in building the capability and standards of the advisory profession.

“In particular, the new Committee will contribute in a meaningful way to the review of the Financial Advisers Act over the next 18 months,” said Mr Everett.
Committee member Michael Staal stood down from the Code Committee at the end of his term.
 
Lloyds to cut 1,250 insurance jobs
Lloyds Banking Group is cutting 1,250 jobs as it cuts costs and changes the way it sells insurance products in its branches.

The cutbacks, described as devastating news by union officials, are the latest to take place at the 24% UK taxpayer owned bank, according to The Guardian, which has already cut 45,000 roles since rescuing HBOS in 2008.

The cuts will affect staff in the bancassurance sales force involved in selling critical illness and income protection products across Great Britain.

Bank bosses said the reason was due to a fall in demand.

“As a result of significantly reduced customer demand,” the bank told The Guardian, “these products will no longer be available on a stand-alone basis. We will continue to offer protection as part of the mortgage sales process.”
 
Ratings agency appoints new director overseeing NZ
AM Best has appointed David Teo as director, market development – South East Asia, responsible for market development activities in SE Asia, Australia and New Zealand.

Teo, who is resident in Singapore, has been working in the insurance industry for seven years, coming from Aon Benfield Asia before joining AM Best.

His previous work included advising clients in Asia on various rating agency issues and assisting clients with implementing Enterprise Risk Management (ERM) frameworks, which have increasing importance for the industry worldwide, the agency said in a statement.

Teo began his career in accounting in external and internal auditing where he gained insight into the operations of life and non-life insurance clients. He has also worked in a major Japanese insurance company where he was in charge of the full scope of the internal audit work.

Susanna Lam, managing director of AM Best Asia-Pacific Ltd, said they looked forward to his playing a key role in the agency’s support of existing relationships and growth in the SE Asia and ANZ (re)insurance markets.