i-law

World Insurance Report

Sector to gain from free trade agreement

Liability and other trade related classes likely to benefit most Claudio Rossi, chief executive of Chubb Seguros, has told the newspaper Estrategia that the Free Trade Agreement which was signed between Chile and the US means an improvement for..
Online Published Date:  01 December 2005
Appeared in issue:  717 - 04 July 2003

New roundup

• After increases of up to 18% during 2002, prepaid healthcare providers in Argentina, known as Medicina Prepaga, pushed their prices up to another 7% during the first four months of this year, reported the Competition and Consumer Defense..
Online Published Date:  01 December 2005
Appeared in issue:  717 - 04 July 2003

Life sales buoyed by new product

Unique life/pension product helped to increase sales by 80% in 1st quarter Vida Generador de Beneficios Libres (VGBL) has been the true engine for the development of life business in Brazil over the last months, says the Private Insurances..
Online Published Date:  01 December 2005
Appeared in issue:  717 - 04 July 2003

Latin America

Mexican storm losses The Association of Mexican Insurers (AMIS) is predicting a growth rate for the local insurance market of only 4%, representing a 1% to 2% fall in real terms. According to AMIS chief executive Recaredo Arias, this is due to the..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Middle East

Regulator concerned about conflict of interest Oman’s insurance regulator, the Capital Markets Authority (CMA), has tightened the rules for insurance brokers. One of the main objectives of the CMA ruling, which took over the regulation of the..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Asia

Watson Wyatt opens Shanghai office Insurance and financial services consultancy Watson Wyatt, which has serviced the Chinese insurance market through its offices in Hong Kong, is setting up a consulting presence in Shanghai in early 2006. Watson..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Europe

Marine disputes to increase Disputes between marine insurers as to which policy year should pay for long term damages are likely to increase, if the market’s consensus on how to deal with such claims is allowed to break down. Assureds will be..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

North America

Greenberg will not face criminal charges The New York Attorney General Office confirmed that no criminal charges would be brought against Maurice Greenberg, the former chairman and chief executive of AIG, but that the Office would expand its civil..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Security

10.11, explosion, fatalities Jordan: at least 57 people were killed and about 300 injured in explosions at hotels in the Jordanian capital, Amman. The Grand Hyatt, Radisson and Days Inn hotels were hit in near-simultaneous blasts by suicide bombers...
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Aviation

10.11, Ogun State air crash Nigeria: more than 80% of the entombed Bellview aircraft (Boeing 737-2L9 5N-BFN) that crashed in October at Lisa Igbore village in Ifo area of Ogun State, have been excavated. The 117 people on board the aircraft died...
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Natural catastrophes

12.11, Pakistani earthquake damage estimates Pakistan: according to the latest estimates, the cost of the devastating earthquake would be to the tune of US$5.2bn according to a Preliminary Damage and Needs Assessment done by the World Bank and..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Marine

9.11, capsize, fatalities China: the death toll from the capsizing of cargo vessel Liaopuyun-777 in the Yellow Sea near north-eastern China’s coastal city of Dalian rose to 18, with one other person still missing. The vessel overturned while..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Liability, awards and settlements

7.11, toxic mould, settlement US: a family who claims toxic mold in their home caused brain damage in their baby has reached a $22.6mn settlement against a lumber company and 16 other defendants. The parents of the baby claimed that he became..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Road and rail

9.11, train crash, fatalities India: eight people were killed and 16 people injured in a train crash in eastern India. Three coaches of a packed passenger train were badly damaged after a collision with a freight train. The accident took place near..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Property and business interruption

9.11, explosion, fatalities China: at least 11 miners were killed, 14 injured and three others missing when 500kg of dynamite stored in a room near a coal mine exploded in China’s westernmost Xinjiang Uygur Autonomous Region. The incident..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Late reports

4.11, building collapse, fatalities Egypt: eight people were killed in Alexandria when part of a four-storey building collapsed. Eight other people were injured and nine were rescued by emergency services using ladders. 4.11, kidnapping,..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

XL Capital Limited

The impressive results achieved by the group in 2004 are in marked contrast with XL Capital’s fortunes in 2005
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

The suspension of the 2001 insurance law continues to hamper development of local market

The market is already deregulated to a considerable extent, although the insurance law of 2001 had been intended to strengthen the hand of the superintendency regarding the regulation of participants in the insurance sector
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Investors firmly focused on the commercial potential of the next property catastrophe hard market

The Swiss Re-GE Insurance Solutions deal is a significant admission of defeat by a diversified group whose core, unshakable belief is that careful planning and operational discipline are the keys to success in any enterprise.
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Metlife interested in opportunities for Chilean pensions business

Pensions part of Metlife strategy • Cruz del Sur could use proceeds of R&SA non-life deal to expand life operations
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Ecuador’s insurers record bumper growth since 2000 dollarisation

Nine-month premiums up 15% • Penetration levels remain low in the smaller regional markets of Uruguay and Paraguay
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

On again-off again privatisation plan still hangs in the balance

Market regulator says a decision still has to be made although government is thought to favour new restructuring plan
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Private insurers move to protect investments against depreciation

Public insurers’ investments perform better than private • IRDA reiterates support for higher FDI limit • NIC profits up
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

France prepares to announce details of terrorism reinsurance

The cost of a new terrorism scheme is just one of the many issues that have yet to be revealed to insurers
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

EU membership sees insurance market grow 12% in 2004

Foreign players see little advance in Polish market share but gain from profitable year in both life and non-life
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Groupama eyes potential acquisitions outside France before listing

Groupama interested in Turkish insurer • Aegon buys 50% in Spanish life insurer • EC adopts fair value option for IFRS
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Swiss Re set to become world’s largest reinsurer via GE deal

General Electric offloads its reinsurance business but Swiss Re takes no chances and secures US$3.4bn for reserves
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

‘Convergence’ products here to stay

Products will have critical impact on competitiveness of insurers and reinsurers
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Call for change in UK work patterns

A savings rate of 6% is much less than is necessary for a comfortable retirement
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Nanotechnology to have dramatic impact on risk assessment

Unknown effects of new technology on public health and the environment will make it harder for insurers to set reserves
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Captives and the traditional insurance market

In recent years, the captive insurance industry has witnessed a tightening of tax regulations, which have decreased the overall profitability of the captive vehicle. In light of this changing environment, it is critical that the modern captive adds strategic, as well as financial value, to its parent company. Chris Charman , managing director, Thomas Miller Risk Management (UK) Ltd, says it is increasingly important that captives are more effectively integrated in the parent company’s overall risk management strategy, instead of being used mainly as a means of funding deductibles.
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Lloyd’s and the rest of the world

The £1.4bn profit posted by the Lloyd’s market in 2004 was the third in a row. The market achieved a combined ratio of 96.9% in a context (as it was back then) of the most costly hurricane season ever. According to Lord Levene , the..
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Aviva enters FDI fray

Savings growth at risk if further foreign capital is not allowed into the market
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Ready to privatise IRB?

During the first two years, 60% of reinsurance has to be placed with locally registered companies which could be either Brazilian or foreign owned
Online Published Date:  02 December 2005
Appeared in issue:  777 - 02 December 2005

Middle East

Emiratisation targets Aman, the Dubai based Islamic insurance and reinsurance company, announced that it will increase the number of United Arab Emirate nationals working for the company to 35% by the end of 2006. Currently, the number of UAE..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Asia

Arig opens Singapore branch Bahrain based Arab Insurance Group (Arig) has established a branch operation in Singapore in order to gain better access to the Asian markets. Arig will concentrate its activities on insurance markets in Singapore,..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Europe

Mutuals step up lobbying The European mutual insurance sector is stepping up its efforts to keep the draft Regulation for a European mutual society statute (ME) on the European Parliament’s legislative agenda after the European Commission..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

North America/Bermuda

Reduced result Rating agency Fitch is predicting a greatly reduced underwriting result for the US property and casualty insurance industry in 2005. Although industry trends broadly mirrored those of 2004, catastrophe losses in 2005 were much more..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

International

Infectious disease cover Broker Aon has highlighted the need for commercial enterprises to take out specialised infectious disease cover. Steve Allum, chairman of Aon’s Marine Global Practice Group writing the group’s recently published..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Aviation

21.11, air crash, fatalities Russia: eight people were killed when a Cessna aircraft carrying them crashed near Moscow. The aircraft, which departed from Voronezh and was due to land at Moscow’s Domodedovo airport, disappeared from radar..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Natural catastrophes

23.11, floods, fatalities Sri Lanka: floods triggered by heavy rains in Sri Lanka have killed six people and damaged thousands of homes, affecting many still in shelters after last year ‘ tsunami. Some 2,000 homes were destroyed and at least..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Marine

23.11, sinking, fatalities China: thirteen Chinese sailors are missing and feared dead after their ship general cargo vessel, An Jin transporting steel from Shanghai to Singapore, sank in waters off southern Vietnam. Nine sailors were rescued by a..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Liability, awards and settlements

22.11, asbestos settlement US: West Virginia University has reached a settlement in a class-action lawsuit affecting up to 5,600 former and current employees who may have been exposed to asbestos. As part of the proposed settlement, WVU will..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Road and rail

23.11, crash, fatalities Turkey: nine people were killed and 18 others injured as a passenger train crashed into a vehicle carrying workers in the southern Turkish province of Mersin. The train was en route from another southern province of Adana to..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Property and business interruption

22.11, explosion, fatalities Mexico: an explosion at a fireworks factory in southern Mexico killed at least five people. The civil protection agency said the factory in the town of Magdalena Apasco in Oaxaca state did not have a license to..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Late reports

13.11, explosion at chemical factory, pollution China: an explosion at a petrochemical plant seriously polluted a river which led authorities to shut off water supplies in one of its biggest cities for at least four days. Five people were killed in..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Brit Insurance Holdings

The relatively modest technical result was largely due to a 76% fall in the underwriting profits of the reinsurance business
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Millea Holdings

A negative difference of only 3% between the growth of Millea Group’s operating income and is operating costs resulted in a 30% fall in its pre-tax profits
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Fall in inflation rate offers hope to market currently inhibited by the narrow range and the short term nature of its product offerings

Inflation in Turkey has reduced considerably and in 2004 was down to 8.5% from 25.3% in 2003 and this, together with the change to the currency denominations in January this year, has renewed optimism in the life insurance market.
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Performance of European stocks overshadows their US and Bermudian counterparts in 2005

More than $15bn in new capital has already been raised; $9bn of this money will be used to support the new start ups.
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

China plans health insurance reforms to aid growth

The vast majority, ie 70.3 %, of China’s population have to rely on their own resources for health care
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Old Mutual lowers acceptance target for Skandia

Tensions mount as Old Mutual’s hostile offer for Skandia approaches its end on 16 December
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Life expectancy forecasts still ahead of pensions reform

The Turner report has set off a number of debates on the financial implications of an ageing population
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Canadian acquisition leapfrogs AXA into top 10 position

AXA to be Canada’s 6th largest insurer • Swiss Re funds GE buy • Munich Re protects against storm losses • Aegon issues $500mn in bonds
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Multi-line p/c insurers challenged by new business models

A new study reveals how product focused and lean operators are outperforming more traditionally minded insurers
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Next five years crucial for insurance growth in emerging markets, Swiss Re Sigma Report

Life insurance is forecast to grow by 8% between 2005 and 2010 while non-life insurance will rise by 5%
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Rising costs and claims cancel out benefits of market expansion

Nine-month figures show premium growth of 23% struggling to keep up with a 32% rise in claims and a 26% rise in costs
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Delay in imposition of VAT on insurance services welcomed

The fear is that outsourcers might be compelled to buy services ‘offshore’ outside the EU to escape the reach of VAT
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

The five principles of dynamic sourcing

If outsourcing, or sourcing as it’s becoming better known, has lost its way a little as recent debate is suggesting, how can it get back in favour and bring real value to insurers? Andrew Groth* describes a new approach to designing, shaping and managing outsourcing relationships that focuses on business objectives and outcomes rather than on technological goals
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Supporting financial stability

Hurricane Katrina, which struck the Gulf Coast of the United States in late August 2005 and decimated the city of New Orleans, is likely to be the most expensive natural catastrophe ever. Insured losses are estimated to be as high as $60bn. This..
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

Aviva to outsource 3,500 more jobs to India

Insurers will spend $11bn on business process outsourcing by 2008
Online Published Date:  16 December 2005
Appeared in issue:  778 - 16 December 2005

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