Swiss Re’s latest sigma study ‘Navigating recent developments in marine and airline insurance’ highlights the increasing role of domestic and regional insurers.
Businesses expanding overseas for the first time usually start by looking for a local insurance solution. But an underlying interest in centrally managed multinational insurance arrangements that provide leverage and control takes hold. Until then, awareness of these options is low, according to a business insight from AIG Europe entitled: ‘The challenges facing medium sized businesses that need to insure their assets overseas.’
Recent economic stagnation in emerging markets has brought a new era of instability, increasing the political risk exposures for many companies – a risk that is often compounded by social media usage, according to Marsh.
The Gulf Cooperation Council (GCC) insurance market has been one of the fastest growing regions for insurers, with average annual revenue growth of 16.8% over the past six years, and will see significant further growth over the near to medium term, according to Moody’s Investors Service.
Shanghai Free Trade Zone opens, OECD report on Asia Pacific disaster risk financing, Brazilian insurance regulator issues report, Asian reinsurers raising new capital, says AM Best report, AIG Europe launches environmental response network, AGCS opens Stockholm branch, S&P report into global multiline insurers, AGCS announces new global responsibilities, Future of insurance M&A report from PwC and European insurers reducing financial leverage, says Moody’s.
IAIS to develop global insurance capital standard, Response to IAIS ICS proposals centres on timing, Solvency II delays hurt European insurers – Van Hulle, Costa Rican ruling on market opening, China signs Multilateral Tax Convention, Regulatory and premium tax update from Marsh, Claims compensation legislation enacted in Belgium, Airmic to deliver compliance solution next year, Bahamas introduces VAT at 15%, Regulatory changes highlighted by AIG and Venezuela insurance changes for road haulers.
Hawaii releases captive contribution information, FiscalReps launches captive consultancy practice, Guernsey signs tax agreements with Switzerland and Hungary, David Cameron says Guernsey is ‘not a tax haven’ and MDS appoints former Ferma president.
It was almost inevitable that the banking crisis would impact on the insurance sector. Not so much the financial fall-out but the regulatory response. The obsession with systemic risk (quite right in the case of the banks, as history has shown) has spilled over into the insurance sector, resulting in the IAIS publishing a list of Global Systemically Important Insurers.A list of GSI reinsurers will be published by the IAIS next year.
The Korean insurance industry is regulated by the Financial Supervisory Service (FSS) and insurance regulations prohibit the use of non-admitted insurance except for a few classes of cross border business.
Until fairly recently, admitted global programmes had been confined to property and liability classes, but as countries are becoming more sophisticated with their insurance laws, and becoming more litigious, times are changing.