It’s great to hear that the European Captive Insurance and Reinsurance Owners’ Association (ECIROA) campaign to persuade the IAIS to look at the area of excess covers as part of global programmes is finally getting underway. IAIS action is long overdue and the hope is that a workshop can be arranged at the IAIS to discuss the issue openly.
The Thai insurance market has recovered from the shock losses that resulted from 2011’s flooding catastrophe and the sector is rated as stable by the leading credit agencies. Fitch Ratings recently said that Thailand’s insurance industry is likely to grow steadily in 2015 supported by improving economic activity, low market penetration and a rising middle-income population. In addition, strengthened regulatory capital requirements are likely to lead to industry consolidation, especially in the fragmented non-life insurance industry.
What is the value of insurance to a company? More importantly for risk managers, what is the value of a captive insurer to the parent? Such questions should not be answered with reference to market inefficiencies or complexities, or talking about cheaper premiums, according to Reiner Hoffmann, Lead Consultant for Complex Accounts Underwriting, XL Group. Instead, the captive’s strategic role in managing intangible or uninsurable risks should be emphasised.
The long awaited Indian Insurance Bill, which allows for 49% foreign direct investment in domestic insurance companies, has been enacted, albeit via an Ordinance rather than being tabled in the Upper House of the Parliament of India (Rajya Sabha). Currently, India allows local insurance companies to have foreign partners with a maximum share of 26%. The Bill has been pending approval since 2008.
It’s that time of year when reinsurance people take a breather and look back at the renewal season to take stock of what happened to capacity and pricing. The reinsurance renewals are a big deal, because they are a bellwether for the rest of the insurance market globally. The view this year from the leading reinsurance brokers is that the reinsurance market is massively over capitalised, and too much competition is feeding soft market conditions.
Lloyd’s is at a crossroads and needs to turn threats into opportunities if it is to keep its place at the top of the commercial insurance market. That was the message from Lloyd’s CEO Inga Beale, giving a lecture to the Insurance Institute of London recently.
London’s IUA to offer IPT information service, France brings in two new IPT rates, EIOPA report on insurance sector financial stability, Pool Re’s revised funding proposals increases charge to insurers, China’s Solvency System will boost insurers’ credit profiles, Slovenia announces IPT rate increase, TMF Group IPT Update, Bulgaria changes IPT settlement period, China plans to extend VAT to insurance policies and Indian regulator in name change.
XL Group acquisition of Catlin Group to create global specialty company, Chinese insurers to look abroad for growth, Markel to operate in Dubai International Financial Centre, Talanx to acquire Chilean insurer, Fairfax to buy QBE’s operations in Czech Republic, Hungary and Slovakia, Allianz sells Fireman’s Fund personal lines business to ACE, Generali acquires 49% stake in Malaysian insurer, Big increase in fire insurance rates in India, Environmental insurance more expensive in Brazil, Assurex Global gets three new members and Chaucer appoints China representative.
Hawaii increases captive numbers in 2014, Arizona reports growth in captives, New chairman for North Carolina Captive Insurance Association, Captive reinsurers increase lifeco’s financial stability risk, says OFR and EIOPA consults on Bermuda, Japan and Switzerland SII equivalence.
Saudi Arabia’s non-life P/C insurance sector, Qatari P/C insurance sector, Gulf Cooperation Council insurers, Middle East insurers, Central American insurance sector, Indonesia’s non-life insurance sector, Malaysian insurance and takaful sector, Non-life insurers in China and Sri Lankan insurance sector.