Sun Life Financial Inc’s total net income in 2010 saw a growth of nearly 300% over its 2009 results. Net income from its Asia operations in 1Q 2011 also saw an increase of more than 10 times over the corresponding period in 2010. We speak to Mr Colm J Freyne, Executive Vice President and CFO and Mr Thomas A Bogart, Executive Vice President, Business Development and General Counsel, to find out what contributed to the strong performance and whether there are expansion plans in Asia on the back of the impressive results.
By Benjamin Ang
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Korean technology and manufacturing firms have blazed the trail internationally. With a strong foundation domestically for insurers, it is now time for a Korean global player, says Mr Moon Jae-Woo, Chairman and CEO of the General Insurance Association of Korea (GIAK).
By Benjamin Ang
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In ASEAN, the next big change is the impending implementation of the ASEAN Free Trade Area (AFTA) by 2015. The result will be a common market allowing for the free flow of goods, services and investment in amongst the member nations. Mr Roberto B Crisol, President & CEO of the National Reinsurance Corp of the Philippines, is strongly in favour of this change and tells us AFTA will benefit the region’s insurance industries and its consumers.
By Seow Kai Lun
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Taiwan is always seen as a very competitive mature market with several uphill challenges. But the insurance industry, with the active support of the regulator, has put together a roadmap to steer the sector back into a sustainable environment of adequate rates and valid profits.
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While there has been a lot of attention on the exit of some foreign insurers from the island, Dr Huang Tien-Mu, Director General of the Insurance Bureau, says that the FSC today, is focused on boosting insurers’ solvency levels and liability reserves, to strengthen and align them with international standards. However, he is also quick to add that foreign players remain welcome to Taiwan.
By Manuelita Contreras
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Decent population size, capable authorities, high life insurance penetration rates, sound insurance awareness and open business lines to China – all these seem to be a recipe for success for Taiwan’s life insurance industry. Yet, throw in tough competition, new regulations, and past sales of investment-linked products at previously high interest rates, and a market with some serious challenges is created.
By Min Yong
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There is no surprise that Taiwan’s non-life insurance market has faced difficulties such as excessive competition, low retention levels and the higher frequency of catastrophes. In spite of this, 2011 is set to register higher revenues thanks to the strong economic growth, an improved operating environment and increased earnings from investments. Mr Tsan-Ming Shih, Chairman of Fubon Insurance Co Ltd and Mr Jack Tai, Chairman of the Non-Life Insurance Association of Taiwan (NLIA) share their insights and offer solutions to improve the market.
By Min Yong
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We speak with Mr Tseng Wu-Jen, President of Taiwan Insurance Institute, to get his views on the highly competitive market, the impact on regulations introduced and what he sees as necessary to improve the industry.
By Benjamin Ang
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Capitalisation is a crucial factor for Taiwan life insurers, while profitability remains the key concern for non-life insurers. Ms Serene Hsieh of Taiwan Ratings Corp gives an update on both sectors of this market, highlighting the trends that are expected in this mature and highly competitive market.
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Life reinsurance is growing strongly in tandem with the underlying life insurance business, while non-life reinsurance is still going through a soft patch as well as facing the challenge of increasing retention. Three professionals from Swiss Re give an update on the reinsurance scene in this fifth-largest insurance market in Asia.
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The Insurance Act is the principal legislation that regulates insurance businesses and the insurance industry generally in Taiwan, and the relevant competent authority, the Insurance Bureau (IB) of the Financial Supervisory Commission (FSC), is authorised to promulgate ancillary regulations from time to time to supplement the supervision of insurance enterprises as well as insurance intermediaries.
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The Maldives is synonymous with tourism and resorts but there is an active insurance industry too, as discovered by our correspondent Jimmy John, who visited the country recently.
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A transactional insurance broker is definitely a dinosaur. These days, a broker has to anticipate changes; help his clients comply with regulations around the globe; create new products and services; conduct surveys; analyse data and information; provide expertise in all aspects of the business and the list goes on.
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Professional expertise, integrity and trust are some of the expected requirements for insurance brokers, say three insurers. They tell us what they look for in brokers in order to forge relevant and reliable partnerships with them.
By Benjamin Ang
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Like insurance brokers, reinsurance brokers are evolving to meet industry needs. We ask Mr Jeffrey Lee of Samsung Fire & Marine Insurance and Mr James Yeh of MSIG Mingtai Insurance three quick questions about their take on reinsurance brokers and here are their replies.
By Benjamin Ang
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Given the volatile market that exists today, the role that reinsurance brokers play has expanded. They are challenged by risks ranging from catastrophe losses to regulatory changes, increased competition and possible impending economic slowdown. Two top brokers tell us that one has to go above and beyond for clients.
By Seow Kai Lun
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The recent disaster in Japan was exceptional in all senses of the word. Dr Hans Peter Wurmli from The Geneva Association, debates whether this was a case of risk management gone wrong or one of those rare but possible low probability events still remaining.
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A vessel owner seeks to challenge a Tribunal’s ruling after an Award is made. Mr Andrew Horton and Ms Emily Harwood of Barlow Lyde & Gilbert give us the details of this case, Milan Nigeria Ltd v Angeliki B Maritime Co (The “Angeliki B”) (2011).
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Regulatory shifts across Asia are putting more distribution accountability on bank channels. Delegates
heard this and other bancassurance issues such as open architecture platform and exclusivity at the 12th Asian Conference on Bancassurance & Alternative Distribution Channels with the theme “The critical dynamic strategies to increase business and profits”.
By Benjamin Ang
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SMEs in Asia remain a difficult market to penetrate given their low awareness and appreciation of the value of insurance protection. How can insurers reach out more aggressively to this market and build a strong brand recognition?
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For the economic powerhouses of China and India and the smaller emerging markets in Asia, it is all system go, before and after the GFC. Reflecting that boom is the strong growth of the oil and gas industry in the region.
For energy insurance, more of it is being written out of Asia, with eight of the 16 Lloyd’s syndicates in Singapore writing this class. The downside is that rates have not been adequate due to complacency and competition. Two major players give us an update of the situation today.
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The energy insurance market in Asia has grown tremendously. Mr Matthew Simmonds of Marsh gives an update of this specialised market in Asia.
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Mr Praveen Gupta from Raheja QBE General Insurance Co Ltd gives a personal take on retaining women professionals and also how women from Saudi Arabia, China and Afghanistan are making waves in their chosen industries.
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A new channel of sales has emerged: Using the smartphone to reach customers. In Asia, insurers are making haste to develop relevant applications, to make insurance more accessible for a greater audience.
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One of the biggest challenges of microinsurance has been reaching out to the poor. Technology has since stepped in to play a big role in ensuring that those who need the protection the most get it.
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The Pacific Insurance Conference (PIC) returns to Singapore this October after 12 years. A two-time attendee gives a personal take on the event widely regarded as the premier life insurance conference for movers and shakers in the region.
By Wong Mei-Hwen
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The Federation of Afro-Asian Insurers and Reinsurers (FAIR) Conference moves back to its home ground of Cairo this year after 47 years traversing the globe. But while preparations may have been delayed by the shift of the venue from Libya in March this year, Secretary General Hammam M Badr remains optimistic that the biennial event will be a success.
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Political turbulence in some countries, higher fuel prices and soft market conditions spell dark skies for the aviation industry, but the FAIR Aviation Pool, managed by Morocco’s Société Centrale de Réasurance (SCR), continues to fulfil its role of providing capacity to Afro-Asian players.
By Wong Mei-Hwen
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The EAAC biennial conference will be held in Kuala Lumpur, Malaysia in October this year. With a theme “Venture into Uncertainty, Capture Opportunities!”, the conference challenges actuaries to meet uncertainties head-on and use their exceptional skills to move the insurance industry forward.
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Dr Kai-Uwe Schanz from Dr. Schanz, Alms & Company, Zurich reports on the 5th International Reinsurance Summit which was held in Zurich on 27-28 June 2011, where delegates hear and discuss about growing complexity, excess capacity, risk selection, inflation and many other issues.
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Walter, who was always dangerously devoted to the insurance industry throughout his life as an active practitioner, an educationist, an accountant, a management consultant, and a campaigner has passed away. Here, we bring you tributes to the Man who lived, breathed and dreamed of insurance.
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Standard & Poor’s Ratings Services maintained a stable outlook on most of the life insurance markets in Asia Pacific.
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Buyers of political violence and terrorism insurance are seeking broader coverage to deal with the growing complexity of political environments, said senior executives at Aon Risk Solutions.
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Swiss Re has agreed to insure US$250 million of trade finance conducted through the Asian Development Bank’s Trade Finance Programme (TFP), a move expected to boost exports and imports in Asia’s developing countries.
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The Asian Reinsurance Corp (Asian Re) held its Management Board, Council and the Fifth Shareholders’ Assembly meetings on 22-24 June 2011 in Bangkok to adopt and approve the accounts for the year 2010.
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As part of efforts to refine and simplify its service offering to clients, Crawford & Company asked an outside agency to survey insurers, reinsurers and brokers to determine the main issues around major loss handling and key attributes they expect from adjusters. According to the findings, clients are most interested in geographic reach and adjuster skills when choosing a company to handle large, complex losses.
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Between 1980 and 2010, the deadliest natural catastrophe in China was recorded in 1998. The floods from May to September that year resulted in 4,159 fatalities. It also recorded the highest overall losses at US$30.7 billion.
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Ping An Insurance (Group) Company of China Ltd has received approval from the China Securities Regulatory Commission (CSRC) for its proposed major asset restructuring. It has also been exempted from the obligation of making a general offer in respect of its acquisition of Shenzhen Development Bank (SDB) as a result of the major asset restructuring.
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AXA is set to become the first foreign life insurer to operate a trial variable annuity in China since CIRC opened the market segment in May.
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SinoSoft Co Ltd, a domestic insurance software and service solution provider, and Oceanwide Inc, a provider of hosted solutions for the global insurance industry, signed a distribution agreement for the sale of Oceanwide’s product in China.
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Aon Risk Solutions announced the Hong Kong opening of its space insurance practice, International Space Brokers (ISB).
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China Construction Bank (Asia) and ING Life signed an agreement to extend for another decade their bancassurance collaboration. Expiring 2021, this strategic move marks the companies’ commitments to a long-term synergy in a collaboration that began in 2007.
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After the serial blasts in Mumbai which have claimed 18 lives and injured 150, the insurance industry has said it does not see the possibility of any hike in premium for terror cover. “We don’t foresee any hike in premium rates as there has not been much damage to properties,” said Mr Yogesh Lohiya, General Insurance Corporation (GIC) Chairman and Managing Director.
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Anticipating the ASEAN Community with effect from 2015, Ms Nurhaida, Head of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), said Indonesian insurance companies must improve their capital and human resources in order to compete in the regional market.
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Allianz is selling EUR500 million (US$706.8 million) of contingent convertible notes to Japan’s largest insurer by asset, Nippon Life. Contingent convertible notes (CoCos) are bonds that convert to equity once a pre-agreed measure of financial stress has been breached, boosting solvency ratio in case of a crisis.
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The total number of payments for Earthquake insurance on Dwelling Risks reached more than 680,000 and the total claims paid was JPY1.03 trillion (US$13.3 billion), as at the beginning of July, said General Insurance Association of Japan (GIAJ).
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Korea’s KB Financial Group Inc, is planning to buy a life insurer in its search for new growth engines to boost its non-banking business and reduce its reliance on banking revenue, said its Chairman, Mr Euh Yoon-dae.
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ACE INA International Holdings Ltd, a subsidiary of the ACE Group, has acquired the 49% stake it did not already own of ACE Synergy Insurance Bhd from Advance Synergy Capital Bhd for US$39 million in cash.
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Zurich Insurance Co Ltd has signed an agreement to acquire 100% of the share capital of Malaysian Assurance Alliance Bhd (MAAB).
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The general insurance industry registered total gross written premiums of MYR13.009 billion (US$4.324 billion) in 2010. This represented an 8.56% growth over the previous year. Net premiums grew 7.11% to MYR8.981 billion.
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About 50% of Singaporeans worry that they will not have enough money to provide an adequate standard of living when they retire, while 44% think they are going to work beyond the normal retirement date, according to the Consumer Attitudes to Savings (CAS) study released by Aviva. Only 32% feel they have enough savings or investments to cope with the unexpected.
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Malayan Insurance Co has remained the top non-life insurer in the Philippines with net premiums of PHP2.59 billion (US$60.36 million) at the end of 2010. Total gross premiums was PHP5.85 billion while its net premiums represent about 12% of the total net premium of the general insurance industry of PHP22.2 billion.
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Softlogic Holdings group is acquiring a 73.5% stake in Asian Alliance Insurance for LKR3,308 million (US$30.2 million). Asian Alliance has both life and non-life businesses.
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The Financial Services Commission (FSC) has given its final approval to the sale of Nan Shan Insurance Co, AIG’s Taiwan unit, to Ruen Chen Investment Holding Co. This comes after the regulator gave its conditional approval previously.
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The Fair Trade Commission (FTC) has approved the application of Chinatrust Financial Holding to acquire MetLife Taiwan Life Insurance Co, as it does not expect the deal to harm competition in the local life insurance market.
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Finally! The deal is done. The FSC has given the go-ahead to the sale of Nan Shan Life Insurance to Ruen Chen Investment Holding for US$2.16 billion. We track the sale saga which had gone on for close to three years.
By Benjamin Ang
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Global insurance premiums for 2010 increased 2.7% to US$4.339 trillion, with non-life insurance premiums increasing by 2.1% to US$1.819 trillion, while life insurance premiums rose 3.2% to $2.52 trillion, according to Swiss Re’s 2010 Sigma Study.
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This is the highest-ever loss year, said Munich Re in a report, where the economic loss for the first half of the year stands at approximately US$265 billion, mostly stemming from the 11 March Japan earthquake. This has already exceeded the losses for 2005, which totalled $220 billion for the entire year, and is more than five times higher than the first-half loss average for the past 10 years.
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The overall global insurance market remains well-capitalised and generally competitive despite the natural CAT losses so far in 2011, according a report by Marsh.
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Pacific Life Insurance Co has signed an agreement to purchase Manulife Financial Corp’s life retrocession business. The portfolio of approximately US$106 billion of individual life reinsurance face amount will make Pacific Life the leading individual life retrocessionaire in North America, with an approximate 41% share of the market.
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In a move that could result in the formation of the largest property catastrophe reinsurer in the world, Validus Holdings made a US$3.5 billion bid to acquire Transatlantic Holdings.
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The International Association of Insurance Supervisors (IAIS) is developing a framework to foster cooperation among supervisors of internationally active insurers, a response to the increasing globalisation of the insurance sector, and will draw on lessons learnt from the financial crisis.
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Impending regulations designed to clamp down on commissions given to financial advisers are expected to affect UK insurers, according to analysts at Nomura.
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