Guest Editorial - Lessons in Leadership
Guest Editorial - The global reinsurance market: Confronting challenges on multiple fronts
Risk Management Feature - Building and operating for sustainability
Notes on Asia - Risk a catalyst for opportunity
Conference Reports - Companies face uphill battle with risks
On the occasion of his induction into the Insurance Hall of Fame, we ask Marsh & McLennan Companies President and CEO Brian Duperreault to offer his perspectives on leadership.
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Dr Kai-Uwe Schanz from Dr. Schanz, Alms & Company, Zurich discusses the short- and medium-term outlook for the global reinsurance industry.
Mr Peter Madeley of FM Global looks at loss prevention in all its dimensions, and spells out an effective approach to help sustain the continuity of business operations.
Asia-Pacific’s 20- to 40-year-olds have become slightly more risk-averse compared to two years ago, says Mr Clarence Wong of Swiss Re, highlighting the findings of their latest risk appetite and insurance survey.
The consensus at the 3rd Asian Risk Management Conference is that businesses are facing an uphill battle in the number of risks they have to contend with. Consequently, risk management continues to gain more importance, and risk managers are surely growing in their ranks. By Manuelita Contreras
It is almost 6 months since the 9.0 magnitude earthquake and tsunami hit the Tohoku region of Japan. We bring you a photo-file that salutes the nation in the crisis and the very conscientious role that the insurance industry plays in the Japanese society.
The key challenge in the Indian insurance industry today and beyond is the need to have customer-friendly products and innovative channels of distribution for these products. Mr Yogesh Lohiya, Chairman-cum-Managing Director, General Insurance Corporation of India (GIC Re), chats about the growth engines of both India and GIC Re as well as the...
With full control of its pan-Asian business, and with the Australia and New Zealand businesses no longer under its control after the completion of its deal with AMP on AXA APH, AXA is making key changes to become a bigger player in Asia, says Mr John Dacey, Vice Chairman for Asia-Pacific. By Manuelita Contreras
Now Health International, Asia’s most recent entrant into the health insurance space, sees high demand for International Private Medical Insurance (IPMI) among expatriates. Mr Ralph Tam, its Managing Director, Asia Pacific, shares why they are not late in the game and how they are differentiating themselves in the region’s health...
In this spotlight, we drill down on the numbers in China’s insurance industry, where the CIRC is ever active with more new rules.
China’s rise to become an economic powerhouse over the last decade has also minted its insurance market to be a “must-be-in” turf. Growth is a given, but players should not forget that the country is heavily exposed to catastrophes, that its disaster insurance market remains significantly underdeveloped, and that the ageing...
The China insurance market is a young but dynamic market. Since the latest amendments to the Insurance Law of People’s Republic of China (China) in 2009, we have seen significant and rapid developments on insurance legal regime.
A pilot programme for variable annuities (VAs) was launched in China recently. Mr Heng Loong Cheong and Mr Sheng Wu, both from Dewey & LeBoeuf, give a detailed outlook for VAs in the country and also suggest that foreign insurers can go into the VA market to grow their market share.
What is the intellectual property rights situation in China? Prof Dr Dexter Morse, an international consultant, gives an insight into this area, exploring judicial routes, statistics of rulings and outcomes, comparing the courts in different provinces, as well as offering advice on what foreign companies can do to protect themselves.
Ms Wendy Ding of Deacons Shanghai Representative Office analyses the draft ruling on supervision of an insurance brokerage and insurance adjuster business personnel.
Three industry players give their perspectives on the reinsurance scene in Asia and we also find out why there are still so few Asian players at the annual Monte Carlo Rendezvous.
The future of reinsurance in Asia looks bright. The region has favourable demographics, significantly low penetration and density, is underinsured and needs more capacity. Mr Franz Josef Hahn sees reinsurance support as a crucial ingredient to the sustainability of the expanding economies and social growth here.
With Solvency II in Europe getting closer, how are regulations in Asia positioned, and what options do companies have to improve their capital positions under their current environment? What are the potential new environments as regulations continue to converge to a principle-based approach? Mr Graham Bancroft of Munich Re, Asia is focused on...
Ms Michelle Sanford of Guy Carpenter reviews the lessons to be learnt from the recent natural catastrophes in Asia. She also examines the response of the global reinsurance market to the situation and notes that the market has been very resilient.
In its 55th year, the Rendez-Vous de Septembre will see thousands of insurance leaders and experts gathering along this beautiful coast of Monaco to hold discussions on the 1 January P&C treaty renewals. We look at this prominent annual meeting and probe its importance and relevance to Asia. By Min Yong
With the IAIS Annual seminar being held in Korea later this month, we bring you a special inside view of the host country, as well as the current challenges faced by the IAIS.
This year marks a pivotal time for Korea’s insurance industry as the Financial Supervisory Service (FSS) implements the RBC framework and brings Korea’s accounting regime in line with the IFRS while stepping up the supervision of selling practices to ensure greater consumer protection. As the host of this year’s IAIS Annual...
In this extract from the PROGRES newsletter from The Geneva Association, Mr Patrick M Liedtke of The Geneva Association explores the impact of the increased regulations on the industry.
India’s prominence in the world is primarily because of its trillion-dollar economy, a consistent high growth rate of more than 8% per annum, prudent fiscal and monetary norms set by various institutions and political stability. Mr Ayandev Saha, a microinsurance Consultant, explores the world of microinsurance in this behemoth nation, its...
Mr Katsuo Matsushita of The Geneva Association revisits the tragic event and analyses the lessons that can be drawn, including six risk adaptation and risk scenario perspectives and implications.
Mr David Smyth and Mr Antony Sassi from Barlow Lyde & Gilbert review some key proposals and issues that arise from the establishment of an “Independent Insurance Authority” (IIA).
Mr Kent Chaplin of Lloyd’s Asia notes that, while surplus capital in Asia is creating a weak pricing environment, they remain optimistic that the region is still a place worth investing in.
With the start of 2011 wrought with natural disasters, it has been the most costly first quarter ever for the insurance industry. A deeper look into the year’s events was taken at the 9th Conference on Catastrophe Insurance in Asia, as well as exploring the need to look at CAT reinsurance in a new light. We bring you highlights of the...
As insurers face a new world of opportunities, they were reminded at the 47th IIS Annual Seminar in Toronto that the industry’s problems are not safely behind it, and that they must continue to learn lessons from the financial crisis. By Manuelita Contreras
The increasing demand for motor vehicles around Asia has created many opportunities for insurers, who will have to look at ways to provide cover at affordable prices while trying to maintain underwriting surplus. At the recent 2nd Asian Motor Insurance and Claims Management conference held in Colombo, Sri Lanka, underwriting and claims experts...
Mr David Kinloch of Labuan IBFC Inc Sdn Bhd shares with us the benefits of co-location and urges insurance entities to start looking at Labuan if they have not done so.
With the 25th Pacific Insurance Conference, we bring a special life report with insights from some of high-level key players in the market.
The International Financial Reporting Standards (IFRS) are accounting standards issued by the London-based International Accounting Standards Board (IASB), an independent standard-setting board. The IASB aims to develop a single set of high quality accounting standards that are accepted globally. Here, life CEOs comment on these new standards...
With the 25th PIC Conference being held in Singapore, Mr Tan Hak Leh, the Conference Chairman, shares his take on the life insurance market on the island. The key challenges are an increasingly commoditised market and the need to close the protection gap, while the ageing population and high net worth segment present opportunities. By Benjamin...
The Asia Pacific insurance industry is certainly back in the black, and back from the brink of the financial meltdown witnessed in 2009, when the Pacific Insurance Conference (PIC) was last held. Riding on the wave of this renewed optimism, this year’s PIC, being held this month in Singapore, zooms in on how life insurers can seize...
Mr Chuck Johnston of Oracle Corp explores the main concerns of insurers today, and urges insurers to adopt adaptive IT systems so as to be swift and agile.
The current political situation in the MENA region is expected to directly affect the business of the FAIR Non-Life Reinsurance Pool, but its Director, Mr Ömer Altug, is confident that it will remain stable and will generate profits for its members. By Manuelita Contreras
Singapore continues to grow as an insurance powerhouse as it boosts its lure as a financial centre, both regionally and internationally. In this curtain raiser to the 11th SIRC on 30 October - 2 November 2011 in Singapore, we look at how the city-state is keeping its appeal as an insurance hub in top shape. By Manuelita Contreras
Mr Paulson Lum passed away in June, losing a quick battle with cancer. But he leaves behind a legacy in insurance where in many ways he was more than a broker, an innovator, a path finder, a friend and a leader. He was very dedicated in his job and always ready to explore new avenues of business.
An insurance man and actuary since day one of his career, Mr A Greig Woodring of RGA is devoted to the business and to learning and seeking new challenges every day.
Industry players have often warned against a ban on commissions for financial advisers (FAs). They cite the issue of under-insurance which will only worsen with a ban. Insurance is sold, not bought – is the common saying. On the other hand, proponents say commissions is the reason why mis-selling occurs, as it skews the impartiality of...
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.
There is a growing interest in space insurance in Asia.
Ratings agency Standard and Poor’s said its unprecedented US credit rating downgrade, “in and of itself”, will have no immediate impact on Asia Pacific sovereign ratings, but long-term consequences could be negative. S&P lowered US issuer credit ratings to AA+ from AAA.
Mrs Chantra Purnariksha, Secretary-General of the Office of Insurance Commission (OIC), Thailand, spoke of the issuance of the Bangkok Declaration on Insurance Cooperation amongst Asian Insurance Regulators, which states the cooperation among insurance regulators in the region in exchanging information and experience to develop insurance...
The Office of Insurance Commission in Thailand has tested Risk Explorer™, a dynamic financial analysis model from Ultimate Risk Solutions (URS) while BEST RE (L), a retakful operator in Malaysia, has licensed it.
Allianz and CommInsure emerged winners in this year’s Australian Insurance Industry Awards for the General Insurance Company of the Year and Life Insurance Company of the Year categories, respectively.
At the price of CNY687.5 million (US$107.57 million), Insurance Australia Group (IAG) has agreed to acquire a 20% strategic interest in Bohai Property Insurance, a general insurer in China. Under the terms of the agreement, IAG will have board representation as well as senior management roles in key technical areas. Completion is expected in...
The country’s first life insurance company will be established as a joint venture between the government and a group of four private companies, though no date has been fixed yet.
Based on official figures, at least 40 people died and 192 were injured in the high-speed train crash on 23 July near the city of Wenzhou in east Zhejiang province.
Chinese insurers recorded total premium income of CNY805.66 billion (US$125.23 billion) in the first six months of the year. This is a growth of 13% y-o-y, said the CIRC.
China Reinsurance (Group) Corp is striving to be an international medium-sized reinsurer by 2015, said its Chairman, Mr Li Peiyu.
The State Administration of Foreign Exchange (SAFE), has increased its stake in Munich Re to 3.04%, taking it above the 3% threshold at which it has to declare its share of the company voting rights.
Standard Life (Asia) Ltd has repositioned its brand and has also given it a refreshed visual identity. The repositioning has been shaped by extensive customer research and insight.
The IRDA is set to do away with the unpopular 4.5% guaranteed return requirement on pension products, which was imposed last September. Insurers will now only need to provide a capital guarantee.
IRDA is considering a common framework to supervise insurance companies’ asset liability management (ALM) practices with stress testing on various risks to their investments.
Punjab National Bank is to acquire a 30% stake in MetLife India Insurance Co, the value of which is not disclosed.
After assessments of factors including asset growth, average growth of investment, average equity growth, premium increases and profits, 10 companies were named as among the best in the insurance industry.
The General Insurance Association of Japan (GIAJ) recently hosted a visit from the Association of Vietnamese Insurers (AVI)’s study team to take a look at automobile insurance.
The Financial Supervisory Service (FSS) said 5,839 vehicle flood-damage claims as a result of the floods in July were submitted. It projects that insurers will pay about KRW40.3 billion (US$37.7 million) to settle the claims.
Tune Money Sdn Bhd, in cooperation with AIA Bhd, will be offering a range of insurance protection products exclusively for AirAsia guests in Malaysia. Under the AirAsia INSURE Lifestyle Protection Programme, AirAsia guests will be offered life, accident and health insurance protection products that are tailor-made to meet their needs for...
Despite mounting catastrophe losses and a reduction of capacity after a series of earthquakes since last September, New Zealand will continue to be supported by international insurers and reinsurers. But it has got to be on a commercial basis, said Lloyd’s Chairman Lord Peter Levene.
The life sector could post a 60% increase in first-year premiums and a 23% growth in total premiums, in a repeat of 2010’s performance, said Mr Mayo Jose Ongsingco, President of the Philippine Life Insurance Association Inc (PLIA).
From January 2012, financial institutions will be required to formally assess a retail customer’s investment knowledge and experience before selling them certain investment products.
Singapore’s life insurance industry registered a total of S$941.5 million (US$777.6 million) in weighted new business premiums for the first half of 2011, a 38% growth over the same period last year.
The Shipowners’ Club, a P&I insurance provider, is investing additional resource in its Singapore branch in order to maintain service levels and respond to market growth, as it continues to expand its business in the Asia Pacific Region.
Life insurance in Taiwan saw falling revenue in the first half of 2011 continue due to the impact of the new accounting standards implemented in January and a fall in new business premium.
Asia Capital Reinsurance Group (ACR) is reinsuring Union Insurance for the first Restriction of Hazardous Substances (RoHS) Insurance in Taiwan.
The Financial Supervisory Commission (FSC) is looking at allowing insurers to invest in Chinese yuan-denominated securities and bonds issued in Hong Kong. This is in response to the demand for more investment options by insurance companies.
Despite economic difficulties, the first half insurance premium income grew 22% over the corresponding period last year, to VND17.4 trillion (US$852.6 million). The statistics were released by the Insurance Supervisory Department.
The curse of piracy and its vicious implications in human terms, as well as its impact on world trade through disrupting cargoes and the financial losses inflicted on shipowners and insurers, will be hotly discussed during the International Union of Marine Insurance (IUMI) annual forum from 18 to 21 September.
The widespread rioting and looting across London could run up more than £200 million (US$327.8 million) according to the Association of British Insurers (ABI).
With nearly 50% of adults feeling less secure about providing personal details to businesses online compared to a year ago, cyber crime is estimated to cost the UK economy £27 billion (US$44.3 billion), according to a study commissioned by Kiln.
Tokio Marine Holdings is to become the sole shareholder of First Insurance, the largest Hawaii-based property and casualty insurance carrier.
Insurance capacity remains buoyant in Europe, the Middle East and Africa (EMEA), according to a new report published by Marsh. However, in some areas, rates have increased and insurers have tightened their policy terms and conditions in the second quarter of 2011.
Based on Swiss Re’s annual sigma report on world insurance, the Asia Pacific has shown impressive improvements and emerged as a key player in the global market. We take a closer look at the report and see signs that the region looks set to climb higher in the world insurance ladder. By Benjamin Ang