Speaking at the Federation of Small Businesses (FSB) annual conference in Aberdeen, Mr Salmond said he would challenge such a policy.

UK Business Secretary Lord Mandelson said increases were difficult but sometimes necessary.

Mr Salmond also unveiled a £5m investment fund for small businesses.

In his speech, the first minister said: “In terms of the pre-budget report, the SNP MPs join with others to challenge the policy of increasing the tax on jobs in the middle of a recession.

When businesses are saying to me the priority demand is to reduce the deficit, then they can’t then in the next breath exclude the means of doing that
Lord Mandelson
Business Secretary

“It cannot be right to increase the tax on jobs as the country is still in the throws of recession.”

Speaking ahead of the conference, Lord Mandelson said: “If you were to choose some alternative way of raising taxation, for example, VAT, there would be many sectors of the economy who would be coming to me and saying please don’t do that.

“Nobody likes increased taxation and you don’t introduce it unless you have to.

“When businesses are saying to me the priority demand is to reduce the deficit, then they can’t then in the next breath exclude the means of doing that.”

‘Finding savings’

Shadow Chancellor George Osbourne, who also addressed the conference, said: “I am working night and day to try and avoid Labour’s National Insurance rise, not just on small businesses and large businesses but on many many thousands of people in Scotland because it is also an income tax rise.

“What I am looking for are the ways to avoid it and that means finding savings elsewhere.

“But I am only going to be able to give that commitment when I am absolutely clear that I can afford it because the last thing people want from politicians at the moment are promises that they can’t keep.”

Small businesses truly are the lifeblood of the economy and are doing all they can to ensure the country fully recovers from the recession this year
John Wright
FSB national chairman

Mr Salmond also announced the creation of a £5m investment fund for small businesses.

He said the fund would offer more than 430 growth businesses in the east of Scotland access to loans of up to £50,000.

The government said the fund had the potential to generate increased turnover of £34.56m in small and medium-sized enterprises and could create approximately 1,300 new jobs.

The initiative will be supported by £2m in European Regional Development Funding and £3m of funding from the 12 local authorities who will deliver the scheme.

It will operate in Fife, Aberdeen, Angus, Edinburgh, Clackmannanshire, Dundee, Falkirk, Fife, Midlothian, Moray, Perth and Kinross, Stirling and West Lothian.

FSB national chairman John Wright said: “Small businesses truly are the lifeblood of the economy and are doing all they can to ensure the country fully recovers from the recession this year.”

The federation, which has over 20,000 members in Scotland, exists to protect and promote the interests of the self-employed and all those who run their own business.

Matson will work directly with business development and regional leadership to drive growth through increased representation of Aon’s consulting capability with large clients.

Matson brings with him more than 25 years of experience of building and managing global accounts with Hewitt Associates. As a principal, Matson was responsible for leading global consulting business development efforts for Fortune 500 companies and providing human resources solutions, including talent management, organizational effectiveness and merger and acquisition support.

Driving the increases in insurers’ net income and rate of return, net losses on underwriting fell by $16.6 billion to $3.2 billion through nine-months 2009 from $19.8 billion through nine-months 2008, as claim costs (loss and loss adjustment expenses) dropped $26.5 billion, according to ISO and the Property Casualty Insurers Association of America (PCI).

The combined ratio — a key measure of losses and other underwriting expenses per dollar of premium — improved to 100.7 percent in the first nine months of this year from 105.5 percent in the first nine months of 2008. If not for the decline in claim costs, the combined ratio would have increased 3.5 percentage points, instead of declining by 4.8 percentage points.

The figures are consolidated estimates for all private property/casualty insurers based on reports accounting for at least 96 percent of all business written by private U.S. property/casualty insurers.

Underwriting Results

Underwriting results improved in the first nine months of 2009 even though premiums continued declining. Net written premiums dropped $15.1 billion, or 4.5 percent, to $321.2 billion for nine-months 2009 from $336.3 billion for nine-months 2008. Net earned premiums declined $12.8 billion, or 3.9 percent, to $317.8 billion for nine-months 2009 from $330.6 billion for nine-months 2008.

At negative 4.5 percent, net written premium growth through nine months fell to a new record low. Based on quarterly premium data extending back to 1986, the previous record lows for nine-month premium growth were negative 0.3 percent in 2008 and negative 0.2 percent in 2005, with nine-month premium growth ranging as high as 13.8 percent in 2002.

“The decline in written premiums reflects economic conditions. The latest data shows the nation’s gross domestic product [GDP], which takes into account both inflation and real growth, fell 2.0 percent in the first nine months of 2009 compared with its level a year earlier, with seasonally adjusted total private-sector employment falling 4.5 percent and private-sector wages and salaries dropping 4.9 percent. Moreover, previously released data shows sales by retailers, including restaurants and other food services, dropped 8.6 percent,” said Michael R. Murray, ISO’s assistant vice president for financial analysis. “All of this reduces demand for insurance. And with insurers competing with one another for shares of a shrinking economic pie, market surveys indicate the recession contributed to continued softening in commercial insurance markets. For example, the Council of Insurance Agents and Brokers’ third-quarter 2009 market survey indicates commercial premium rates declined an average of 5.8 percent for all sizes of accounts.”

Driving the improvement in underwriting results, insurers’ overall net loss and loss adjustment expenses (after reinsurance recoveries) fell to $231.7 billion in the first nine-months of 2009 from $258.3 billion in the first nine months of 2008. ISO estimates that the net catastrophe losses included in private insurers’ financial results declined to $10.9 billon for nine-months 2009 from $21.1 billion for nine-months 2008, even though net catastrophe losses for nine-months 2009 include some late-emerging losses from Hurricane Ike in 2008. Excluding catastrophe losses, net loss and loss adjustment expenses fell $16.3 billion, or 6.9 percent, to $220.8 billion for nine-months 2009 from $237.1 billion for nine-months 2008.

According to ISO’s Property Claim Services (PCS) unit, catastrophes striking the United States in the first nine months of 2009 caused $10.3 billion in direct insured losses to property (before reinsurance recoveries) for all insurers (including residual market insurers and foreign insurers and reinsurers) — down $16.5 billion from the direct insured losses to property due to the catastrophes striking the United States in the first nine months of 2008 and $6.9 billion less than the $17.2 billion average for nine-month direct catastrophe losses during the past 10 years.

Also contributing to the improvement in underwriting results, other underwriting expenses — primarily acquisition expenses, expenses associated with underwriting, pricing and servicing insurance policies, and premium taxes — dropped $2.8 billion, or 3.1 percent, to $88.3 billion in nine-months 2009 from $91.1 billion in nine-months 2008.

Dividends to policyholders through nine-months 2009 amounted to $1 billion, essentially unchanged from dividends to policyholders through nine-months 2008.

The $3.2 billion net loss on underwriting for nine-months 2009 amounts to 1 percent of the $317.8 billion in net premiums earned during the period, whereas the $19.8 billion net loss on underwriting for nine-months 2008 amounted to 6 percent of the $330.6 billion in net premiums earned during that period.

“While the 100.7 percent combined ratio for nine-months 2009 compares favorably with the 104.8 percent average combined ratio for the first nine months of every year since 1986, today’s low interest rates and investment yields mean insurers must now post significantly better underwriting results just to be as profitable as they once were,” said David Sampson, PCI president and chief executive officer. “For example, for nine-months 1986, insurers achieved a 14.9 percent annualized overall rate of return with a combined ratio of 108 percent. For nine-months 2009, insurers’ annualized rate of return was just 4.5 percent, even though the combined ratio was 7.3 percentage points better.”

“Mortgage and financial guaranty insurers continued to suffer disproportionate losses on underwriting consequent to the recession, foreclosures, and defaults on securities. But their underwriting results improved significantly, largely as a result of special arrangements between one insurer and its financial counterparties,” said Murray. “Mortgage and financial guaranty insurers’ net written premiums declined 27.1 percent to $4.9 billion for the first nine months of 2009. But their loss and loss adjustment expenses fell 46.1 percent to $9.3 billion, and their combined ratio improved to 175 percent for nine-months 2009 from 276.2 percent for nine-months 2008. Excluding mortgage and financial guaranty insurers, industry net written premiums fell 4 percent, loss and loss adjustment expenses dropped 7.7 percent, and the combined ratio receded to 99.3 percent for nine-months 2009 from 101.8 percent for nine-months 2008.”

Third-Quarter Results

The industry’s consolidated net income after taxes for third-quarter 2009 amounted to $10.4 billion — a $20.2 billion swing from the industry’s $9.8 billion net loss after taxes for third-quarter 2008. Reflecting the increase in net income, property/casualty insurers’ annualized rate of return on average surplus rose to 8.7 percent in third-quarter 2009 from negative 7.9 percent a year earlier.

Mortgage and financial guaranty insurers’ annualized rate of return increased to negative 1.1 percent in third-quarter 2009 from negative 178.7 percent in third-quarter 2008, as their net income after taxes rose to near zero from negative $6.1 billion.

Excluding mortgage and financial guaranty insurers, the insurance industry’s annualized rate of return rose to 8.9 percent in third-quarter 2009 from negative 3.1 percent in third-quarter 2008, as its net income increased to $10.4 billion from negative $3.7 billion.

The $1.1 billion in net losses on underwriting in third-quarter 2009 compares with $14.3 billion in net losses on underwriting in third-quarter 2008. Contributing to the improvement in underwriting results, ISO estimates that the net catastrophe losses (after reinsurance recoveries) included in private insurers’ financial results declined to $2.6 billion in third-quarter 2009 from $10.5 billion a year earlier.

For all insurers (including residual market insurers and foreign insurers and reinsurers), direct insured losses from catastrophes striking the United States in third-quarter 2009 totaled $2.6 billion, down $13.5 billion from the $16.1 billion in direct insured losses caused by catastrophes that struck in third-quarter 2008, according to ISO’s PCS unit.

Third-quarter 2009 net losses on underwriting amount to 1 percent of the $106.3 billion in premiums earned during the period, compared with third-quarter 2008 net losses on underwriting amounting to 12.6 percent of the $112.8 billion in premiums earned during the period.

The industry’s combined ratio improved to 100.5 percent in third-quarter 2009 from 112.3 percent in third-quarter 2008.

The $1.1 billion in net losses on underwriting is after deducting $0.3 billion in premiums returned to policyholders as dividends, with dividends to policyholders essentially unchanged from their level in third-quarter 2008.

Written premiums fell $5.7 billion, or 5 percent, to $108.4 billion in third-quarter 2009 from $114.1 billion in third-quarter 2008. At negative 5 percent in third-quarter 2009, quarterly written premium growth had fallen to a new record low based on quarterly premium data extending back to 1986, with the previous record low being the negative 4.8 percent for second-quarter 2009.

Excluding mortgage and financial guaranty insurers, net written premiums fell 4.5 percent in third-quarter 2009, loss and loss adjustment expenses dropped 15.8 percent, and the combined ratio declined to 99.1 percent from 106.9 percent in third-quarter 2008.

“Written premiums have now declined versus year-ago levels for 10 successive quarters,” said Sampson. “This extended period of decline is the result of increasingly intense competition in many insurance markets and the recession that began in December 2007. Prior to this unprecedented string of declines, ISO’s quarterly data extending back to 1986 shows that written premiums declined in just two quarters — fourth-quarter 1991 and third-quarter 2005. The decline in third-quarter 2005 resulted from a special transaction in which one insurer ceded $6 billion in premiums to its foreign parent.”

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The insurance market is very competitive – most people insure their assets, so there is a lot of insurance that can be sold. With there being so much competition in the market, it works in the favour of the consumer. You can get all the major insurers to call you back with your car and home insurance quotes and then find the one that is going to provide you with the peace of mind you want at a price that is affordable whilst still ensuring you have enough insurance.

With the recession, many people are cutting back on their expenses. Some types of insurance may no longer be that worthwhile. Insuring cellphones, for example, may end up costing you more than the phone is worth before you get your upgrade. Some other smaller home items may also not need to be covered, and you can save by swapping your insurance. Shop around for your car and home insurance, and it could help you to have that little bit of extra cash for the holiday season without you having to worry about being robbed when you go away.

1. “I Think …”

Never begin a statement regarding a claim with these words. If you aren’t sure, don’t guess. What you say could cause your claim to be delayed or denied, says attorney Vedica Puri. And if you’re wrong — say, you report driving at 30 miles per hour before an accident but police later prove you were going 50 — it could hurt your credibility.
Particularly beware of speculating on blame or causation. For example, if you suggest that a water leak is due to a construction defect, you could give the insurer an out if that’s a policy exclusion.

Stick to the facts. Should the insurance rep ask you a question you can’t answer, simply say, “I don’t know.” If the person is taking a written or recorded statement, ask for a transcript to review for misstatements.

2. “I Got Whiplash”

Fraud costs auto insurers up to $6.8 billion a year, reports the Insurance Research Council. And suing for damages caused by whiplash is a fraudster favorite (“Oh, my neck!”). Merely mentioning the term is likely to get your claim flagged for further investigation, says Amy Danise of Insure.com.

Whiplash is a specific diagnosis. If a doctor says that you have it, then you should report it as such. Other wise, if you feel neck pain, just refer to it that way.

3. “It’s an Experimental Treatment”

Truly experimental or investigational medical procedures are typically not eligible for health insurance coverage. So if a doctor tells you he wants to experiment with a treatment, don’t represent it using those words. “In medical terms it may not actually be experimental or investigational,” explains Danise. “If it’s proven effective, your doctor deems it medically necessary, and it’s not an exclusion, it should be covered.” Verify with your doctor that it meets the above litmus tests before going to the insurer.
4. “My Basement Flooded”

With homeowners insurance, “flood” is a red flag. “The word refers to an act of weather or an overflow from a nearby body of water,” says Danise. “And a standard homeowners policy doesn’t cover it. You’d need flood insurance.”

So don’t use the f-word if your basement is knee-deep in water because of a burst pipe. Damages from such an incident should be covered by a homeowners policy. But calling it a “flood” could muddy the waters, so to speak.
5. “Just Send Me a Check”

When filing a home or auto claim, don’t emphasize that you’re just looking for the cash.

“If you were to say, ‘I don’t care about the roof leak, I just need the money,’ that admission could slow things to a halt,” says Puri. Technically, you’re supposed to use the payout to make the repair for which you filed. While it’s true that most insurance companies aren’t going to check up on you, you’ll certainly raise the fraud unit’s suspicions if you imply that you won’t. And then you might lose out on the money altogether.