Groundbreaking new Labuan laws to boost insurance and financial services
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New laws, which came into effect on 11 February, will dramatically improve Labuan's already competitive edge in international financial markets as they will completely change the way in which the Malaysian island carries on financial services business.
The new laws, comprising four new Acts together with radical amendments to further four existing laws, allow for the creation of Labuan foundations, limited liability partnerships, protected cell companies (insurance and mutual funds), shipping operations, Labuan special trusts and financial planning activities. These complement the existing range of products and services readily available and provide investors with a wider choice of financial products to maximise investment opportunities.
With the enactment of the new laws, Labuan Offshore Financial Services Authority (LOFSA) will be renamed Labuan Financial Services Authority (Labuan FSA).
Dato Azizan Abdul Rahman, Director-General of Labuan FSA, says that the far-reaching changes cover all financial activities in Labuan International Business and Financial Centre (IBFC) - from banking, insurance, leasing and company incorporation right through to the creation of Islamic financial products and services. "Apart from that, the changes have taken into consideration all aspects so that we are ahead of accepted international standards and practices," he said.
"Labuan has always been seen as an effective and user friendly jurisdiction," said Mr David Kinloch, CEO of Labuan IBFC Inc, the sales and marketing unit for the island, "but these new provisions will make it possible for us to attract and welcome many new categories of clients."
Philippine life insurance sales to rise 10% this year
The Philippine life insurance industry is projected to see a 10% increase in sales this year, on the back of growing awareness among Filipinos of the need to save for the future, the Manila Standard Today reports, citing a senior industry executive.
Ms Rizalina Mantaring, President & CEO of Sun Life of Canada (Philippines) Inc, says that including mutual funds, the industry is expected to post up to 20% growth this year.
She notes that the industry began experiencing dramatic growth in the fourth quarter of 2009, during which Sun Life's life insurance sales rose 21% while uptake of mutual funds surged 400%. This followed two typhoons which hit most of Luzon last September and October.
She also expects insurance companies to introduce more products this year, as new ideas emerge to take advantage of the rising population of Filipino retirees.
The insurance industry in Cambodia is projecting double-digit growth this year following a small dip in 2009 due to the global economic slowdown, reports the Phnom Penh Post.
Mr Chhay Rattanak, Chairman of the General Insurance Association of Cambodia (GIAC), forecasts that the industry will expand by at least 10% in 2010. He said: "The increase is expected to follow an expected economic recovery in Cambodia."
The fledgling insurance sector saw revenues pick up in the final two months of last year, representing vast improvement on the rest of 2009. For the first 10 months of last year, insurers saw an 11.5% fall in premiums to US$14.16 million from US$16 million compared with the same period in 2008. The upsurge in November and December led the industry to record an overall annualised 2.86% decline in premiums last year.
Mr Rattanak says that total premium revenues for 2009 fell to US$20.07 million as the global financial crisis affected all sectors of the economy, including the insurance industry. He adds that the results for December last year were better because of a new player, Cambodia-Vietnam Insurance.
Cambodia has six insurance companies: Forte Insurance, Camino, Asia Insurance, Campubank Lonpac, Infinity Insurance, and the newcomer Cambodia-Vietnam Insurance. There is also one domestic reinsurance company.
Focus to be on health and agro insurance in Bangladesh
Healthcare insurance and agriculture insurance will be the focus of the insurance industry in Bangladesh after the establishment of the proposed Insurance Regulatory Authority, reports the online daily, the Financial Express.
"Health and agro insurance will boost the total insurance market generating a substantial amount of premium extending insurance coverage for the benefit of poor people," said A K M Rafiqul Islam, Chairman of Bangladesh Insurance Association, at a recent seminar on healthcare management and health insurance.
To streamline regulations and monitor the insurance sector more efficiently, the Bangladeshi government has been working to update the country's insurance laws and to establish a separate independent regulatory authority, under the jurisdiction of the Finance Ministry, to bring all insurers, both government-run and privately owned, under a single regulatory mechanism.
The government is also working to establish a policyholder protection fund, set up a brokerage house for insurance companies and lay down mandatory minimum solvency margin requirements.
At present, there are 18 companies operating life insurance business in Bangladesh, and 44 non-life insurance companies. The Commerce Ministry currently oversees the insurance sector.
The Hong Kong government may set up a company to provide medical insurance in the territory if private insurers fail to offer "reasonable coverage", reports the Hongkong Standard newspaper.
The warning came ahead of a new round of public consultation on long-awaited healthcare finance reform in the territory. The consultation exercise is scheduled in the second half of the year.
The government is said to be concerned by the "low" coverage provided by private insurers, which is normally not enough to pay for treatment in private hospitals. Patients then have to seek treatment in government hospitals.
"For instance, some insurance companies offer products which provide an allowance of HK$500 (US$64.38) a day - far from enough to foot the bill in private hospitals," said a source. "If patients choose to stay in public hospitals where they pay only HK$100 a day, the insurance companies would reimburse them HK$400. It ends in patients who are already insured being encouraged to go to the public sector for treatment, which is unfair."
"The government does not rule out setting up its own insurance company to compete with the private insurers," added the source.
Chartis shares comeback from crisis story at CEO Summit
Insurer Chartis will share its story of coming back from the recent financial crisis at the 10th CEO Insurance Summit in Asia to be held on 23-25 March in Singapore.
Mr Nic Walsh, Vice Chairman of Chartis Inc and President of Chartis International, joins the Summit's prominent line-up of speakers in a keynote address that will relate how Chartis came back from the crisis through a successful branding effort.
Mr Low Kwok Mun, Executive Director, Insurance Supervision of the Monetary Authority of Singapore, and Mr Evan Greenberg, Chairman & CEO of ACE Limited, will also grace the event as speakers, marking the 10th anniversary of the annual summit.
Organised by Asia Insurance Review with the support of the International Insurance Society and the International Association of Insurance Supervisors, this year's Summit will provide a discussion platform on the theme "Doing Business in a Post-Crisis World".
It will serve as a forum to exchange views on the foundation of sustainable success for any insurance company, and will focus on a whole range of CEO activities from marketing to operational and bottom line strategies.
