SWISS RE CONFIRMS LAUNCH OF NEW CHINESE MOTOR INSURANCE TEAM

Swiss Re has confirmed that it has formed a dedicated motor insurance operation in Asia ( ID Asia ; October 19, 2007). The reinsurer said that it had allocated additional capacity to the Chinese motor market and that its new team would “encourage insurers to use enhanced risk management to effectively lower losses while growing business in higher-value categories such as expensive private cars, and specialised truck, bus and dangerous goods vehicles business”. Swiss Re noted that these were the fastest-growing sectors of Chinese motor insurance , making up about 40% of motor insurance premiums in the country. However, the company warned that they also represented “the vast majority of the industry’s larger motor own damage and own liability losses”. The new team will be led by Asia Head of Motor Anthony O’Brien. He will be “closely supported” by Eddy Lo, vice-president for Client Markets, China motor insurance. Mr O’Brien claimed that “investors who avoid these higher risk groups are actually wasting a huge opportunity”. He said that primary players could modify their liabilities through the use of either special treaty or facultative reinsurance, “combined with better risk management achieved using tools ranging from simple checklists to guide driver selection, to new technology such as online sleep monitors for long-distance drivers”.