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Global News - Munich Re joins longevity risk transfer initiative
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Munich Re has joined the Life and Longevity Markets Association (LLMA), a consortium of banks, insurers and pension experts who are backing a campaign to build a liquid trading market to transfer longevity and mortality-related risks to the capital markets.
While most of the industry in Asia flocks to high-growth markets and businesses, one insurer has preferred to stay out of a highly competitive segment and to patiently await an opportunity for longer-term profitability in one big country – China. As we toast to QBE’s 125 years in the business, Dr Michael Goodwin, CEO for Asia...
In an exclusive interview with Asia Insurance Review, Mr Yang Chao, Chairman of China Life Insurance, shares his views on foreign insurers in the country, the company’s plans and why one should not be overly concerned with analysts’ ratings.
Mr Peter A Smyth, Executive Vice President & Managing Director of MetLife Asia Pacific, and the keynote speaker at LIMRA and LOMA’s 19th Annual Strategic Issues Conference held in Beijing, China, shares his views on China’s insurance industry and the merging of the company’s two mainland JVs. By Benjamin Ang
Asian insurers looking to expand overseas should see other markets differently from how they see their home market, advises Mr Stephan Rajotte, Executive Vice President and Head of the International Business Division at Samsung Life Insurance. By Manuelita Contreras
The human impact of recent catastrophes is paralysing, but the (re)insurance market is in a robust position to ensure that relief efforts can continue apace, says Mr Greg Case, President and CEO, Aon Corp. In an exclusive interview, he also explains how the largest impact on (re)insurers is likely to be from contingent business interruption...
With the aftermath of the first quarter’s catastrophes still weighing heavily on the industry, Mr Jarrod Hill, Head of Property and Casualty, ACE Asia Pacific, shares how he thinks the markets will react, and what ACE sees as the opportunities ahead.
Insurers are feeling the brunt of the 9.0 magnitude earthquake and subsequent tsunami that hit the Tohoku region on 11 March, most of them have increased their loss estimates from their initial reported figures.
Hong Kong may be a mature insurance market, but there are still many new approaches that the regulator and players are looking into to improve the still-expanding market.
The regulator launched three major public consultations, seeking feedback on the IIA, HPS and PPF. In the marketplace, competition continues to be fierce for...
The time is ripe for change in Hong Kong’s insurance market as the regulator leads the proposed establishment of an independent Insurance Authority and a Policyholders’ Protection Fund. With the 2008 financial crisis serving as a necessary impetus, Ms Annie Choi, Commissioner of Insurance, believes that this time around, there is a...
Competition is intense. The industry has 46 life insurers and 19 composite insurers to serve the needs of a seven million population. Despite this, optimism fills the air on the back of last year’s strong performance. As one player describes it, Hong Kong is in the “perfect geo-political position” to ride on China’s...
Hong Kong’s non-life market is definitely back in the sun after the gloomy days of the financial crisis. Old problems remain, however, and now inflation is adding strain to the margins. But with accumulated wealth and the strong mainland connection, the well of opportunity has not run dry. By Manuelita Contreras
Rising retention and business going offshore are leading to lower reinsurance growth in Hong Kong, while rising claims cost and decreased premium volumes have squeezed the underwriting profit of inward reinsurance business. Two top reinsurers believe, though, that opportunities still exist – the industry just needs to respond faster and do...
Most players in Hong Kong support the establishment of an independent Insurance Authority in principle, but they wish to play an active part in determining the final attributes of this new office. Here are their views.
A more balanced multi-distribution strategy with the right mix is the secret to success, say many life insurers. But getting this right is an ongoing exercise. We find out from some insurers how they plan to achieve this balance. By Benjamin Ang
Three major public consultations on the regulation of the insurance industry have been launched in Hong Kong recently:
What an upheaval it has been for the first three months of this year. In our Cover Story, catastrophe experts share aspects of these disasters: the tragic loss of lives in the Tohoku earthquake and tsunami; why cat models seem lacking under the different characteristics of typhoons. We also look at the lessons to be learnt and why rates need to be...
The beginning of 2011 has been wrought with natural catastrophes, with much of the year left to roll out. The good news is that this may spark a reverse in the market trend, firming a softening market.
Japan has the largest and one of the most sophisticated life insurance industry in the world. The powerful M9.0 earthquake and tsunami that caused signficant damage throughout the Tohoku region of Japan on 11 March also triggered an unprecedented number of life insurance claims and will change the nature of mortality risk management throughout the...
Typhoons that impact Japan are typically characterised by strong winds and heavy precipitation, but not equally. Indeed, throughout history, many of the very windiest or wettest typhoons have exhibited one feature or the other, but not both. Dr Peter Sousounis of AIR Worldwide explores why landfalling typhoons in Japan are not both extremely...
The Great Tohoku earthquake in March has raised many important questions about catastrophe risk models. Mr Bill Keogh of EQECAT Inc explains why uncertainty still rules despite the presence of the modeling tools.
A “perfect storm” describes an unusual combination of circumstances that will result in extreme outcomes – a term widely used during the global financial crisis, which resulted in a dramatic hardening of the global credit markets, government intervention, some corporate failures, and structural changes in the financial...
In the aftermath of the GFC, CEOs must understand that the rules of the game have changed, and they have to be leaders with a vision and be daring to take risks. This was the key message from the recent CEO Summit held in Singapore.
In the aftermath of the GFC, CEOs must understand that the rules of the game have changed, and they have to be leaders with a vision and dare to take risks. This was the key message from the recent CEO Summit held in Singapore. We also find out who were the newsmakers who made headlines last year
The world stands on the threshold of a stunning demographic transformation. Mr Richard Jackson from the CSIS introduces the Global Aging Preparedness (GAP) Index which indicates how each country is preparing for global aging in their country.
The long-awaited and much-discussed UK Bribery Act 2010 will come into effect starting July 2011. Mr Patric McGonigal of Barlow Lyde & Gilbert LLP takes a close hard look at the Act, its impact on insurers including the opportunities therein.
The industry remains bullish on takaful – growth is estimated to be around 30% yearly – but pertinent issues need to be resolved for it to jump to the next level and be seen as truly distinct from conventional insurance. The 6th Asian Takaful Conference in Singapore did not shy away from tackling the thorny issues such as resorting...
“New Game, New Rules, New Reality: Devising a Winning Strategy”, was the theme of the 19th Annual LIMRA/LOMA Strategic Issues Conference. One highlight was the executive panel where insights were shared on their companies’ experiences and strategies in China – one of the toughest markets for foreign insurers. By...
On the occasion of China Life joining Swiss Life Network, the half-day Employee Benefit Conference 2011 held in Beijing, China, was hosted by the two companies and examined the state of such benefits in China. By Benjamin Ang
Asia is one target market that ERGO Insurance Group plans to address more intensively with bancassurance. Mr Andreas Kleiner takes a look at the motives and opportunities for growth offered by this alternative sales channel.
Mr David Kinloch of Labuan IBFC, gives a quick rundown of their latest performance indicators, with a keen emphasis on the insurance sub-sector.
The agriculture insurance sectors in China and India are growing in size and prominence, while offering valuable lessons for other Asian countries.
In this curtain raiser to the 11th SIRC, top reinsurers say they remain steadfast and focused on their priorities, but the industry needs to learn from the recent events.
Financial institutions and supervisors are urged to be proactive and vigilant to prevent the recurrence of the financial crisis. Mr Donald Joshua Jaganathan, Assistant Governor of Bank Negara Malaysia, made the call at the inaugural AITRI – Toronto Centre Regional Seminar on Crisis Preparedness for Insurance Supervision, organised by...
Premium growth remained strong in most life insurance markets in the Asia Pacific region, said A.M. Best in its report “Asian Life Insurers Seek Operating Efficiencies as Growth Continues”. The report looked at life insurance industry in Japan, China, South Korea and India.
Anew underwriter of terrorism and sabotage risks for clients in Asia Pacific and Oceania has been launched. Xin Consortium comprises five Singapore-based Lloyd’s syndicates led by Amlin, together with Argenta, Canopius, Markel and Watkins and is authorised and regulated by the Monetary Authority of Singapore.
The federal government plans to ban commissions on life insurance sold in super funds, as part of its Future of Financial Advice (FOFA) reforms.
PICC Property and Casualty Ltd (PICC P&C) aims to be one of the top five global insurers by premium volume in the next five to 10 years.
Sino-US United MetLife Insurance Co (MetLife) has successfully completed the merger of its two joint ventures – Sino-US Met Life and Unite MetLife – in China. It is the first life insurance company merger in China.
New China Life, one of China’s largest life insurers, is set to raise as much as US$4 billion in a dual listing in Hong Kong and Shanghai.
CIRC revealed China’s total insurance premiums increased 1.7% in the first quarter of the year from a year ago to 462 billion yuan (US$71 billion). Assets in the industry totalled 5.4 trillion yuan by the end of the quarter and insurers earned 51.5 billion yuan from investments.
Health insurance portability, which will be allowed for individuals from 1 July, should be extended to group medical policies, said a study by the Foundation of Research, Training and Education in Insurance in India.
The government’s insurance scheme for people below poverty line (BPL), Rashtriya Swasthya Bima Yojana (RSBY) is in trouble.
Mitsui Sumitomo Insurance (MSI) has reached an agreement to become a 50% shareholder of PT Asuransi Jiwa Sinarmas (Sinarmas Life), subject to regulatory approvals.
Sompo Japan Insurance Inc (SJI) is set to increase its shareholdings in Berjaya Sompo Insurance (BSI), a Malaysian non-life insurer, from 30% to 70%, the maximum allowed under foreign investment regulations in Malaysia.
The insurance sector continued to expand in Labuan International Business and Financial Centre (IBFC), with total number of approved insurance entities increasing to 169 in 2010. This is an increase of about 13.4% over 2009, results from Labuan Financial Services Authority’s recently released 2010 Annual Report showed.
Aligning the regulatory and supervisory framework in Islamic finance with ongoing global financial reforms is one of the pressing tasks for the Islamic Financial Services Board (IFSB), said the international standard-setting body at its 8th IFSB summit in Luxembourg recently.
AMI Insurance is looking for fresh capital to satisfy the government’s wish to avoid having to bail it out. The insurer, with about 450,000 policy holders across the country aims to cover all its claims with the fresh capital and has called in Goldman Sachs for advice. It is a bid to strengthen its balance sheet following Christchurch...
In a bid to boost financial returns, the Philippines’ pension fund for government workers is looking to local investments. It terminated an overseas investment plan, which was unfortunately launched at the beginning of the global financial crisis in 2008.
The life insurance industry recorded a total of S$460 million (US$371 million) in weighted new business premiums for the first quarter of 2011, said the Life Insurance Association of Singapore. This represented a 45% increase over the corresponding quarter in 2010.
ASingaporean CAT modeling company, Catalytics, has produced a financial risk model for earthquake in Singapore.
New accounting standards which were implemented in January have been the reason for the drop in life premium in the first quarter 2011, according to Life Insurance Association of the Republic of China.
Taiwan’s insurance penetration rate of 17.7% in 2010 is expected to be the highest globally, said Dr Ted Liang, Vice President of Taiwan Insurance Institute in a media report.
Taiwan Life Insurance Co has reached an agreement to sell a 60% stake in its asset management unit to Mirae Asset Global Investments Co. It hopes the alliance with the South Korean firm will boost its know-how, scale and earnings, while Mirae Asset is looking to strengthen its presence in Asia.
Thailand’s Office of Insurance Commission (OIC) reported that insurance business in the first quarter increased 13.52% y-o-y, with total direct premium amounting to 111.8 billion baht (US$3.7 billion).
The Thai Life Assurance Association has forecasted that 2011 will see premium growth rate of about 15% with premiums expected to exceed 340 billion baht (US$11.2 billion). The forecast followed an increase of 14.3% in total life insurance premiums in 2010.
Assicurazioni Generali announced it is ready to begin operations in Vietnam with a wholly-owned company, Generali Vietnam Life Insurance. It will be headquartered in Ho Chi Minh City, where a representative office had opened in 2009.
Amlin Labuan Ltd was launched recently with an opening party at the Crown Plaza, Kuala Lumpur. Now a Tier 2 risk carrier, Amlin Labuan is well placed, not only to renew existing business, but also to access new classes such as marine hull and general aviation.
The outbreak of severe weather in the US during April could leave insurers facing a bill of US$5.5 billion.
Catastrophes that occurred in the Pacific Rim early in 2011 – the Christchurch, New Zealand earthquake and the Tohoku, Japan earthquake and tsunami - had produced billions of dollars of losses to global insurers and reinsurers, but these have failed to squeeze out all the excess capacity in the global market, said A.M. Best in its Special...
Moody’s Investors Service said that results of the fifth Quantitative Impact Study (QIS5) suggests that most European companies will not need to raise extra capital to comply with the new Solvency II requirements which will come into effect on 1 January 2013. This is as their current capital levels exceed the laid out requirements....
The Hanover Insurance Group is set to acquire Lloyd’s of London insurer Chaucer Holdings for US$510 million, broadening the US insurance group’s business and reach.
The Brazilian government enacted two reinsurance regulations on 31 March, causing international associations to write to them, urging them to reconsider.
AEGON has divested its life reinsurance business, Transamerica Reinsurance, to SCOR to the tune of US$1.4 billion. This consists of $0.9 billion in cash proceeds and $0.5 billion in capital.
New York-based American International Group (AIG) and the US Treasury will sell 100 million shares and 200 million shares of AIG stock respectively, worth a combined total of US$8.7 billion.
The political instability in MENA (Middle East and North Africa) has increased businesses and individuals’ interest in various forms of sabotage & terrorism insurance (political violence, war, strike, riot and civil commotion).
In the aftermath of the GFC, CEOs must understand that the rules of the game have changed, and they have to be leaders with a vision and dare to take risks. This was the key message from the recent CEO Summit held in Singapore. We also find out who were the newsmakers who made headlines last year.