Magazine

Sep 2019

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News


Asian

Asia: Composite pricing shows biggest increase in 5 years

Insurance pricing in the second quarter of 2019 in Asia increased by nearly 4% year-on-year, the largest composite increase in the region in five years, according to Marsh’s Global Insurance Market Index 2019 for the second quarter of this year. 
 


Australia: Insurers need more than robotics process automation

Insurance organisations need to begin to integrate tools other than robotics process automation (RPA) when it comes to differentiating themselves from competitors in smart automation, according to IAG automation evangelist Probir Dutt.
 


Bangladesh: Insurer introduces country's first online motor policy

Publicly listed Nitol Insurance has introduced a car insurance policy that can be bought online, the first such product in Bangladesh.
 


Cambodia: Premium growth forecast to exceed 30% this year

The Cambodian insurance industry is expected to see gross premiums surge by around 30% to about $260m this year from $196.4m last year, the Ministry of Economy and Finance said.
 


Hong Kong: Insurance regulator's delegation of powers to HKMA starts on 23 September

The Hong Kong Insurance Authority (IA) has delegated its inspection and investigation powers over insurance-related businesses of banks and other financial institutions to the Hong Kong Monetary Authority (HKMA).
 


India: Govt insurers face capital pressure under RBC framework

State-owned insurers are expected to require more capital once the insurance sector moves to a risk-based solvency regime that could commence in April 2021.
 


Indonesia: Govt is cautious over plan for insurance holding company

The government has said that it is not in a hurry to form a state owned insurance holding group.
 


Japan: Scandal at postal insurance company widens

The number of insurance policies at Japan Post Insurance sold inappropriately has increased from an initial estimate of 93,000 to at least 183,000. 
 


Malaysia: Finance ministry says national health insurance scheme is non-profit

The Finance Ministry (MoF) has said that the mySalam scheme is a non-profit health insurance scheme which will not benefit any private insurance company.
 


New Zealand: 8 in 10 Kiwis personally worried about climate change

The number of Kiwis who feel that climate change is important to them personally has grown to 79% now, from 72% last year, according to a survey commissioned by insurer IAG New Zealand.
 


Philippines: Govt declares national dengue epidemic

The Department of Health (DOH) declared a national dengue epidemic on 6 August following a meeting with the National Disaster Risk Reduction and Management Council.
 


South Korea: Non-life insurers hiking marketing fees

Major non-life insurers are found to have increased marketing fees to boost market capitalisation, raising concerns that consumers will end up shouldering the costs in the form of increased premiums.
 


Singapore: Unique insurance market conditions enable new players to succeed

New players in the Singapore insurance industry have seen unparalleled growth, an anomaly for insurance markets where large, domestic players typically squeeze out new entrants.
 


Taiwan: Cathay Financial to raise funds for insurance arm

Cathay Financial Holding is planning a rights issue to raise NT$20bn ($638m) amid a rapidly changing financial market. The rights issue is expected to be completed by mid-December at the earliest.
 


Thailand: Regulator to overhaul insurance product approval process

The Office of the Insurance Commission (OIC) has held a meeting with the insurance industry to revamp the process for the approval of insurance products and to improve the standard health insurance contract.
 


Vietnam: Upbeat outlook for insurance market

The insurance industry in Vietnam will continue to maintain its high growth momentum for the rest of this year, and insurers will continue to expand their networks as well as R&D efforts to offer products that meet the increasingly diverse needs of customers, according to Vietnam Insurance Association general secretary Bui Gia Anh. 
 


China

Foreign-owned life insurers see profits surge over last 2 years

The profits of the 28 foreign-owned life insurers in China made aggregate profits in 2018 that were five times those obtained for 2016, according to an analysis by Securities Daily.
 


Top three P&C insurers command two thirds of market in 1H

In the first half of the year, the combined premium income of the three giants of property insurance was CNY434.4bn ($61.6bn), with an average growth rate of 12.9%, which was 1.58 percentage points higher than the industry average. 
 


Six in 10 mainland Chinese consumers prefer digital insurance channels

Around 60% of consumers in mainland China prefer to engage with their life insurers on digital channels over physical ones, according to data released by market research firm Forrester.
 


Global

Price hike for global insurance

According to figures from Marsh, global commercial insurance prices rose by 6% in Q2 of 2019, almost double the increase witnessed in Q1. This represents the largest increase in the Marsh Global Insurance Market Index since its inception in 2012.
 


Global M&A activity at highest level in four years

A report by Clyde & Co has found that the level of activity in insurance M&A has been on a steady rise. The firm’s Insurance Growth Report shows there were 222 completed M&A deals worldwide in the first half of 2019 up from 196 in the second half of 2018. This represents a 13% increase in deals – the highest increase in the volume of transactions since the first half of 2015. The figure also represents the fourth consecutive six-month period of M&A growth.
 


Risk

(Re)insurance to look at governments and capital markets to boost cyber risk capacity

Rating agency Standard & Poor’s says it is inevitable that insurance and reinsurance firms will look to both the government and capital markets to help in boosting available cyber risk capacity. It says that if a prudent approach to underwriting and accumulation management isn’t followed, the economic loss potential associated with cyber risks will be enormous.