BROKERS’ MONTHLY 25
Flu fears spark Service fraudsters jailed
panic buying
A former claims manager of
Tunbridge Wells-based insurer
The late-April development of
Service Underwriting Management
swine flu pandemic fears sparked
(SUM) has been jailed for three
panic buying of travel insurance,
years. Colin Basil Wellicome of
according to Steve Williams, head of
Steeple View, Worthing, West
travel insurance at Confused.com.
Sussex was sentenced on 30 March
“Travel quotes increased by 62%
2009 at Brighton Crown Court
ighlight
amid fears over
having previously pleaded not
the spread of
guilty on 26 September 2008 at
ity threat
swine flu. As
Lewes Crown Court to conspiracy to
one country
defraud his employer, but pleaded
becomes off
guilty to alternative charges of theft
make or break for companies responding
limits for
and attempted theft.
to both issues simultaneously and
holidaymakers,
The plea for conspiracy to
surviving intact. Confidence in business is
the site urges
defraud was changed to guilty at
currently very brittle. If stakeholders - be
all travellers to
pre-trial review on 2 March at
they employees, customers, business
ensure that
Brighton Crown Court, the sum
partners, shareholders or insurers - do not
they have
involved calculated at £276,000.
believe a firm is well prepared and
Steve Williams
adequate cover
Sixteen further offences against
resilient, they make take their activity
for any planned trips. For people
Wellicome remain on file.
elsewhere.
who risk travelling with no cover,
Also convicted was Peter
The world was expecting a bird flu
this serious situation should
Foster, former claims consultant to
pandemic to originate in South East Asia
demonstrate how important
SUM who received a 12 month
and was lulled into a false sense of security
insurance is.”
sentence. The amount cited was
by the difficulties in transmission from
“Travellers should not be
£186,000.
birds to man. Given the relatively porous
prompted to buy cover by major
The criminal charges covered a
border between Mexico and the United
events such as swine flu – the cover
period from July 2003 to September
States, and the likelihood of cases
aims not only to cover unforeseen
2006. The fraud involved the setting
appearing in the UK, companies need to
incidences such as illness or
up by the two individuals of bogus
consider these key action points:-
accidents, but to insure the holiday
entities as service providers and
if customers need to cancel it
bogus claimants on genuine claims.
● Is the business continuity plan up to
date and are key staff trained in their
unexpectedly.”
Wellicome also misappropriated two
roles?
Confused.com warned that
pieces of salvage. The Proceeds of
travel to Mexico may not be
Crime Act process began on 30
insured if policies were purchased
● Does the plan address employee March and will continue over the
absence effectively and consider the
after the Foreign Commonwealth
summer to trace and recover the
implications of remote working and
Office advised against non essential
stolen money. Both employees were
hygiene control? travel to the area. residents of Worthing, West Sussex.
● Are plans sufficiently well defined
and robust to convince key
Allianz secures three-year deal
stakeholders their best interests are
being looking after?
”
Allianz Commercial has secured a three-year deal with insurance broker
R A Cowen & Partners as the principal provider for their SME book of
real and requires attention. Clients need the
business. The partnership is expected to generate
most timely, comprehensive fact-based
significant premium and will see the insurer underwrite
information available to help them make
risks within their small business product range.
informed decisions. The Swine Flu Response
Graeme Durlacher, small business development
Resource Site has been created as an online
manager says that despite strong competition, the
resource for insights on the risks and human tender was successful in responding to the needs of
capital concerns emanating from a the broker, producing a tailored three-year deal. “At
pandemic. Included within the site are Allianz, we are confident that our broad product
articles from Aon experts on managing an portfolio, innovative solutions and value-added
infectious disease outbreak in the workplace offerings provide a market-leading small business
as well as links to the latest news from WHO proposition. Our position of financial strength, allied to
and the Centers for Disease Control and
our commitment to service, makes us a partner to do
Prevention and a form to submit questions Graeme Durlacher
business with.”
and concerns.
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