There is great potential for growth despite the recent slowdown in Thailand’s non-life sector, provided some changes take place, said Mr Anant Keskasemsook, President of Thailand’s eighth-largest non-life insurer Deves Insurance. In an interview with Asia Insurance Review, he also provides an update on the 60-year-old company’s strategy, including its moves into the retail sector.
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Conventional reinsurance players such as Munich Re, Swiss Re, Hannover Re and Scottish Re are moving strongly into the retakaful sector, bringing along a full range of products, services and processes to the takaful arena. Mr Reyda Farid Benbouzid, Managing Director of BEST Re, says this is indeed a positive move for the industry and tells Ms Shakun Ashoka Raj, our Editorial Executive, why this is so and also why Best Re’s current business model is the best one for the reinsurer.
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Kuwait Reinsurance concentrates its business in the Middle East, Africa and Indian subcontinent. With a net worth of US$122 million, it recently established Kuwait Reinsurance Company - Far East Regional Office, an offshore branch in Labuan, Malaysia, to service existing and potential clients from the Asia-Pacific region. In an exclusive interview with Ms Shakun Ashoka Raj from Asia Insurance Review, Mr Ahmad Zabidi Ismail, General Manager, and Mr Ahmad Noor Azhari, Underwriting Manager, share the company’s plans to be a major player in the region.
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In an interview with Asia Insurance Review, Mr Donald Mango, Managing Director at Guy Carpenter & Company, suggests the areas and extent to which ERM implementation should take place if regulatory mandates or incentives are absent.
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In an interview with Asia Insurance Review, Mr Rajagopalan Krishnamurthy, Managing Director of Watson Wyatt Insurance Consulting’s Distribution Practice in Mumbai, discusses the opportunities and pitfalls facing bancassurers in India and the region.
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As more and more countries enter the WTO and trade barriers come down, companies’ businesses are seeing new opportunities, while at the same time their exposures to the world are increasing significantly everyday, too. Insurers which are covering these companies will also have to deal with this increasing level of exposure and that is why global expertise is a premium now and in the future. Asia Insurance Review speaks with four partner lawyers from DLA Piper about the development of the compensation culture in Asia and what the legal issues are for insurance companies in the region today.
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A projected economic growth of 6%, rising income levels and expected construction projects bode well for the industry, while mergers and acquisitions and RBC are pushing for consolidation. At the same time, the wave of Islamic insurance is threatening the turf of the conventional players. Join us as we analyse what makes Malaysia’s general insurance industry tick.
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Despite stagnating growth, exciting times lie ahead for Malaysia’s non-life insurers. The economy is expected to do well, construction projects are set to take off, incomes are rising, and even the recent floods have raised awareness for insurance. On the regulatory front, insurers have been gearing up for RBC and the removal of tariffs – moves that are expected to strengthen the industry. Asia Insurance Review spoke to some of the players to find out more.
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The Malaysian general insurance market is a hive of activity in the wake of several high-profile mergers. In the last 18 months alone, 10 insurance groups have joined forces creating a further polarisation in the industry among the large giants and mid-sized companies. We look at how this consolidation frenzy has changed the dynamics of the marketplace and increased pressure on medium-sized insurers to compete effectively and efficiently.
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Regulation in Malaysia is going through a transition as the market adapts to the introduction of a risk-based capital regime and Bank Negara Malaysia mulls detariffication of rates. Asia Insurance Review speaks to some insurers on their thoughts on these recent regulatory developments.
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Despite the small size of the primary market, Malaysia is still a draw for overseas reinsurers which are enticed by the potentially lucrative takaful market as well as regulatory incentives. A few from the Middle East, including BEST Re and Kuwait Re, have even chosen to set up their regional operations there, with others rumoured to follow. We speak to some players to find out more.
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Ms Chin Siew Chi, Manager, Property/Marine Treaty & Marine Facultative Munich Reinsurance Company, Malaysia Branch, looks at a unique solution adopted by the Malaysian Government to cope with the country’s seasonal flooding problems as water-related claims continue to be a major concern for reinsurers in the market.
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It’s an exciting time for the takaful industry in Malaysia with the entry of four new consortiums and joint ventures between domestic and foreign financial institutions promising to grow the nascent industry which currently has only a 5% penetration. Ms Shakun Ashoka Raj of Asia Insurance Review presents this roundup on the takaful market, including interviews with six of the nine takaful operators.
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With the entry of four new takaful players into the market, bringing the total number of operators to nine, conventional insurers are bracing for increasing competition in an already competitive market and for consumer insurance dollars, and are calling for a level playing field in regulation and premium structures.
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With the growth of the insurance and takaful industry in Malaysia, its training centres play a vital part as the root to developing human capital to facilitate the expansion of the industry. Ms Shakun Ashoka Raj of Asia Insurance Review conducted exclusive interviews with the International Centre for Education in Islamic Finance (INCEIF), Islamic Banking and Finance Institute Malaysia (IBFIM) and Malaysian Insurance Institute (MII) to gather their thoughts on the challenges they face in coping with the dearth of talent in the wake of booming demand from the takaful and insurance industry.
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The issue of healthcare is a sensitive and explosive political concern for any government and in populous Asia, countries are taking a breather from the booming growth and putting in place regulations and infrastructure for both healthcare services and healthcare insurance and encouraging private insurers, both foreign and domestic, to offer healthcare insurance.
We focus in China and India,and bring you healthcare insurance expert view on why insurance is a future imperative in this segment and why government support is critical.
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The number of elderly people in the developing world will triple in 25 years, says the World Health Organization (WHO). And with that, the concern of spiralling healthcare costs. In China and India, the huge population is providing increased challenges for Governments. It is estimated that the number of people above age 60 in China in 1999 was only 10% of the population, but this is expected to increase to 30% by 2050, and in India, the number of people above 60 years is about 8% today, with that number expected to hit 21% by 2050. Asia Insurance Review looks at these two countries and presents a quick overview of the healthcare issues.
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Swiss Re has published a report proposing a public-private partnership approach for the Chinese Government’s consideration in tackling healthcare financing for China’s 1.3 billion people, more than 60% of whom have limited or no access to affordable health protection schemes. In this article, it analyses the situation of China’s healthcare system today and highlights the challenges that lie ahead for the world’s most populous country.
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Ageing populations and pandemics are sobering issues for insurers today. With skyrocketing medical costs, providing healthcare for the population is a colossal headache for all Governments around the world. Whether they are from the developed or developing countries, the issue is perennial and worrying. Here, Mr Damien Marmion, Managing Director of BUPA Health Insurance in Hong Kong, explains why buying that insurance cover is the future imperative and that Governments should support this imperative.
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Mr Gordon Perchthold and Ms Jenny Sutton of The RFP Company have almost five decades of combined experience across upward of 200 projects assisting banks and insurers in defining business direction as well as the design, selection and implementation of a wide range of solutions to address their business challenges. In this article, they discuss the imperative for programme management, what it is, and the challenges in effectively establishing it.
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In this excerpt from the Geneva Papers, Mr John Cooke, Chairman of the Liberalisation of Trade Services (LOTIS) Committee, International Financial Services London, looks into his crystal ball and reflects on what could be the best route to further financial services liberalisation.
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In this articles, Mr Nigel Wagland, a partner, and Mr Patric McGonigal, an associate in the Marine, Energy and Transport team at Barlow Lyde & Gilbert, look at the landmark case of Tradigrain, SIAT & others v Intertek Testing Services (“Intertek”), which judges described as being a resounding success of Intertek in defeating on, all counts, allegations of gross negligence in the way various Collateral Management Agreements (CMAs) were conducted in India.
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With one out of every four fires at industrial and commercial properties caused by human factors, Ms Yong Seek Ying, Group Manager, Field Engineering, FM Global, looks at how effectively dealing with the people element in risk management processes can help reduce costly losses.
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Beyond keeping a healthy cashflow, billing systems have a bigger role to play as a critical front-end tool in helping insurers achieve customer excellence, says Mr Valikarimwala Mazahir, Director, Insurance (Asia Pacific & Japan) at SAP.
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Mr Nehemiah Neo, Managing Director, Insight Adjusters Group (Lloyd’s Agents Singapore and Malaysia), and Regional Director for Asia, vrs Universe, looks at how the current enthusiasm for Free Trade Agreements (FTAs) in Singapore and the Asean region in general is having a beneficial effect on the providers of insurance services such as loss adjusting.
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In the UK alone, around 25% of the total insurance market is in run-off and there are similar percentages in other mature economies around the world. As a special curtain raiser to our first CFO Summit in Taipei this month, Mr Raymond Tan, Regional Head, Finance & IT, Whittington Asia Pacific Pte Ltd, explores various exit strategies available and highlights the various financial factors that CFOs should take into consideration.
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A surge of regulatory change shows little sign of abating, prompting many insurers to consider outsourcing their asset management operations to free up resources for core competencies, says Mr Richard Major, a Senior Insurance Strategist with Deutsche Asset Management in New York.
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With the 21st century dubbed as “Asia’s Century”, insurers in the region must rise to the challenge and pay closer attention to risk management and new risks, said speakers at the inaugural Insurance Leaders Forum held in Singapore recently. Ms Wendy Koh, Editor of Asia Insurance Review, reports.
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As a curtain raiser to the annual IIS Conference in Berlin in July, Mr Patrick W Kenny, President & Chief Executive Officer, International Insurance Society, Inc, looks at the challenges in achieving the ultimate goal of developing a proficiently trained workforce within an insurance company.
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The future is definitely bright for agents and financial advisers as consumers increasingly seek good and professional financial advice. However, to get agents to dole out the quality advice consistently and to have their customers’ needs at heart, agency managers and the insurance companies have a big role to play in nurturing that culture. At the 10th Singapore Agency Management Conference (SAMC), CEOs and managers celebrate its 10th anniversary and share with the industry how and what it takes to lead and serve. Asia Insurance Review reports.
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At first glance, mountain climbing in China is perhaps one of the last activities you would expect Dr Reto Brosi, General Manager of Swiss Re Southeast Asia’s Property & Casualty business to engage in, but as our Editor Wendy Koh discovers, beneath his intellectual Swiss charm lies a man with a penchant for defying gravity.
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The Singapore College of Insurance (SCI) and LOMA signed a Memorandum of Understanding (MOU) today on the sidelines of LOMA’s International Underwriting Congress being held in Shanghai, China to collaborate on jointly awarding a Specialist Diploma in Life and Health Insurance Underwriting.
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Total superannuation assets in Australia rose 6.9% during the December 2006 quarter to reach the A$1 trillion (US$807.7 billion) mark and represents a 19.2% increase over the previous year, according to figures released by the Australian Prudential Regulatory Authority (APRA).
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The Australian Prudential Regulation Authority (APRA) has released the Half Yearly General Insurance Bulletin for the year ended 30 June 2006, indicating an increment of A$0.9 billion (US$0.7 billion) year-on-year gross premium revenue for APRA-regulated general insurers.
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Australian Prudential Regulatory Authority (APRA) has released final prudential standards and guidance on risk management and business continuity management for the life insurance industry, including friendly societies, which will be implemented from next January.
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Vero Insurance has announced its entry into an agreement to acquire Terri Scheer Insurance Brokers, with the purchase scheduled to occur at the end of April.
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Achieving the right price even in a soft market is the key to success as insurers are in the business to make a profit from insurance, said Arig’s GM (Reinsurance) Andreas Weidlich at its 11th Annual Seminar for more than 30 senior managers and executives including even CEOs from over 20 countries.
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In the latest move to improve the country’s healthcare system, China will be selecting one or two provinces to start the trial of an expanded health insurance that will cover urban residents against major illnesses.
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State Street Corporation (STT), a provider of investment management services, has been appointed by Bank of China (BOC) to jointly service the foreign currency insurance funds of China Life Insurance.
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Eurizon Financial Group, an Italian-based consortium, has acquired a 19.9% stake in Union Life Insurance for €800 million (US$1.07 billion), making the latter the most expensive insurer for overseas investors, with each share valued at 6.5 yuan (US$0.84).
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Lloyd’s of London began electronic trading for its Shanghai office in April, following regulatory approval in March to start its reinsurance operation, Lloyd’s Reinsurance Company China Ltd, in the country.
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Clyde & Co held a Regional Insurance & Reinsurance Claims Conference in Hong Kong in March, which gathered speakers and attendees from within Asia and internationally to exchange their views with over 120 senior industry attendees on a wide range of claims issues facing the insurance and reinsurance industry. Guests included senior members from Ace, AIG, Allianz, AON, Atradius, AXA China and AXA Asia, Cathay Pacific, Catlin, Chubb, CLP Power HK, Euler Hermes, Federal Insurance, Gerling, Heath Lambert, HSBC, ING, Jardine Lloyd Thompson, Liberty, Marsh, Miller International, Munich Re, QBE HK & Shanghai, Swiss Re and SCOR.
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China Insurance International Holdings (CIIH) recorded a total of HK$510.77 million (US$65.3 million) in net profits last year, a stunning turnaround from the HK$433.76 million in losses it incurred in 2005. It attributed the reversal to strong growth in its reinsurance business and investment income.
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Commercial and industrial property insurer FM Global has received regulatory approval to establish an insurance branch office in Hong Kong.
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AXA APH has released an Explanatory Memorandum which reveals the planned revision of its Hong Kong 6 aspirational targets to take into account the proposed acquisition of Winterthur Hong Kong from AXA SA, should the shareholders approve the acquisition.
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The Indonesian Sharia Insurance Association will launch a product jointly marketed by a number of insurance companies to cover the risks arising from natural disasters.
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The National Sharia Board of the Indonesian Conference of Islamic Clergies (DSN-MUI) is planning to issue a new fatwa to limit the commission rate from the sale of takaful products.
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Micro Insurance Agency (MIA), a US-based insurance broking company, is in talks with several insurers and microfinance organisations to build alliances as it prepares to venture into India’s rural insurance market.
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The Insurance Regulatory and Development Authority (IRDA)’s proposal to amend the Insurance Act 1938 has been accepted by the Government, said an IRDA official.
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The Indian Government has set up a committee under the Indian Ports Association (IPA) to form common guidelines on insurance for all 12 major ports in the country. The move comes amid concerns over high insurance covers of the Jawaharlal Nehru Port Trust (JNPT).
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SBI Life Insurance Planning, a joint-venture company established by SBI Holdings and AXA Japan Holding, has announced that it has increased its capital by ¥1 billion (US$8.5 million) through a shareholder allocation of 20,000 shares.
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The Financial Services Agency (FSA) has asked Japan’s six largest non-life insurance companies to carry out investigations into claims that they have overcharged policyholders nearly ¥6 billion (US$50 million) in premiums on about 100,000 fire insurance contracts in December last year.
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While the risk stemming from variable annuity (VA) products with minimum guarantees is still comparatively low at Japanese major life insurers due to their relatively high equity investment in general account assets, as the market expands for these newer products, the risk could become material, said Moody’s Investors Service in a new report.
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Mitsui Sumitomo Insurance (MSI) has formulated a new medium-term management plan following the administrative orders imposed by the Financial Services Agency (FSA) last June for inappropriate non-payments of third-sector claims.
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Berjaya Sompo Insurance has teamed up with StemLife, a Malaysia-based cord blood and adult stem cell banking and therapeutics company, to provide a medical insurance policy created exclusively for the latter’s clients.
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The minimum paid-up capital for insurance/takaful companies has been increased from existing level of Rs 150 million (US$2.47 million) to Rs 500 million for life/family takaful and from Rs 80 million to Rs 300 million for non-life/general takaful in a phased of 4-5 years until 2011 for existing insurers/takaful operators.
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The National Reinsurance Corporation expects its net income to almost double this year as a result of its scheduled listing, said the lead underwriter of its initial public offering (IPO).
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Singapore’s general insurance sector grew by a modest 1.3% to chalk up S$2.29 billion (US$1.5 billion) in gross premiums last year, according to figures released by the General Insurance Association of Singapore (GIA) at its 40th Annual General Meeting (AGM) briefing.
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NTUC Income aims to be the biggest and best insurer in Singapore, said its new Chief Executive Tan Suee Chieh in his inaugural address to an audience of 1,600 employees and advisers in April.
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The majority of Singaporeans are not adequately protecting their dependants from the ensuing financial burden in the event of their untimely death and many do not feel the urgency to do so, studies commissioned by the Life Insurance Association of Singapore (LIA) have shown.
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In a move to appease policyholders opposed to their listing, the country’s 22 life insurers have announced a plan to donate 1.5 trillion won (US$1.6 billion) over two years.
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Protection-type insurance have been gaining market share over the last five years in contrast to the sluggish sales of savings-linked insurance products, according to the Korea Life Insurance Association (KLIA).
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Taiwan’s life insurers are looking for more variety in products and distribution channels to improve their risk profiles and to cope with the industry’s challenging operating conditions, said Fitch Ratings.
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The Commerce Ministry has appointed a board member to manage cash-strapped Saha Life Insurance after it failed to maintain its regulatory reserves.
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ACE Asia Pacific has opened its non-life insurance operations in Vietnam, which will offer commercial property & casualty insurance and accident & health covers.
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AIG General Insurance (Vietnam) has entered into an agreement with Saigontourist Travel Service (STS), a leading travel company in Ho Chi Minh City, to provide travel insurance premiums to the latter’s foreign clients.
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Willis Group Holdings’ market commentary analyses on the 1 April 2007 renewal season, which comprehensively covers five territories and 14 classes of business, noted that there were few surprises as rates remained flat or fell.
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Lloyd’s has amassed £3.66 billion (US$7.21 billion) in profits before tax last year on the back of strong underlying conditions and an exceptionally low level of catastrophes, a comparable combined ratio to its international peer group, a strengthened balance sheet and a continuing focus on underwriting discipline.
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Swiss Re has structured and placed the securitisation for Allianz Global Corporate & Specialty AG and was the sole book-runner for the initial offering of US$150 million.
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United Risk Solutions (URS) has launched Res-Solver, a new stochastic reserving software package for the insurance and reinsurance industry. It uses analogies between the payout of insured losses and the decay of radioactive material described in nuclear physics to calculate the amount and volatility of companies’ loss reserves.
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Avanquest has released the latest version of its Monarch report mining and analysis software Monarch Version 9.0, which will enable companies to extract maximum value from report and data content and immediately transform that information into meaningful data to solve critical business problems.
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Equitas Ltd has completed the first part of a deal with Berkshire Hathaway Inc that could provide it with US$7 billion in reinsurance cover and ultimately end the liabilities of Lloyd’s Names reinsured into the vehicle.
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Riding on the back of a huge investment income, Singapore Re turned in its best-ever returns in its 34-year history with a 17% increase in net profit before tax to S$24.9 million in 2006 on the back of a 21% increase in net investment income to $21.7 million, due largely to the proactive trading stance adopted in an extremely buoyant stockmarket.
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Venturing overseas is a necessity for many Singapore companies and some of the bigger firms have embarked on that route with a fair amount of success. However, such expansions are never without their challenges and Great Eastern’s Director & Group Chief Executive Officer Mr Tan Beng Lee shares with our Deputy Editor Ms Irene Yeo the challenges he encounters as the company expands offshore and why he is optimistic that this is the way to go.
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