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Insurance market stagnates despite dynamic economy
The life market is growing at such a pace that it will soon account for the bulk of the market’s total premium income
With Peru’s gross domestic product increasing by 4.4% in the first 8 months of this year, and on an accelerating trend..
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05 November 2004
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751 - 05 November 2004
Asia Pacific
APRA opts for tough approach
The Australian Prudential Regulation Authority (APRA) is expected to push ahead with its new, tougher approach to insurers that fail its “fit and proper” test, following last week’s move by the..
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05 November 2004
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751 - 05 November 2004
Europe
Swiss Re issues aviation underpricing warning
According to a newly published report from Swiss Re, for the global insurance market to maintain a system of sustainable cover for the aviation industry, pricing must continue to reflect the cost of..
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05 November 2004
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751 - 05 November 2004
9 – 22 OCTOBER 2004
Late reports
5. 10, hailstorms, damage
US: hailstorms caused nearly $40mn in damage in New Mexico, according to the Rocky Mountain Insurance Information Association. Insurers estimate that one hailstorm caused more than 8,300 auto claims and about..
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05 November 2004
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751 - 05 November 2004
GE Frankona Re Limited
The company’s underwriting result, although still in negative territory, was a significant improvement over 2002
London market insurer and reinsurer GE Frankona Re returned to profitability in 2003, recording a pre-tax profit of £31mn..
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05 November 2004
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751 - 05 November 2004
Bulstrad
Motor business accounted for 61% of the market leader’s (and former state owned company) non-life volume in 2003
Bulgaria’s insurance market produced BGN666mn (US$429mn) in gross written premiums in 2003, according to the annual report..
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05 November 2004
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751 - 05 November 2004
Mitsui Sumitomo
MSI’s overseas business, up by 30%, is set to expand significantly with the acquisition of the Asian operations of Aviva
Pre-tax profits for Mitsui Sumitomo Insurance (MSI) surged by 179% to ¥191bn (US$1.8bn) in fiscal 2003/4 (the..
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05 November 2004
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751 - 05 November 2004
Life companies looking for ways to bolster their solvency position
New sales of unit-linked contracts have declined since the latter half of 2000 in favour of traditional life insurance
Until 2000 Swedish life companies had to operate on a mutual basis, distributing all profits to policyholders. In 2000 the law..
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05 November 2004
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751 - 05 November 2004
Spitzer probe to impact insurers’ profitability in medium term
Elsewhere, there is call for insurers to master underwriting cycle in order to maintain investor interest
Shares in most New York listed insurers and brokers recovered during the fortnight ending 28 October on news that New York state attorney..
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05 November 2004
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751 - 05 November 2004
MAS calls for move away from commission driven pay model
Some agents are offering “cash discounts” to customers to surrender an existing insurance policy and buy another one
High pressure selling of insurance linked investment products and the increasing practice of policy switching in..
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05 November 2004
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751 - 05 November 2004
Insurers given direct access to stock market
An insurer can now invest up to the equivalent of 5% of its total assets or US$6bn, whichever is less, in equities
Insurance companies in China can now directly invest in the stock market.
Inadequate investment options and low returns from..
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05 November 2004
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751 - 05 November 2004
Irish insurers are on track to surpass even their 2003 performance
The growth being achieved by locally-controlled insurers is giving the Irish market a more competitive complexion
Recent releases of statistics from the Irish Insurance Federation (IIF) and the Irish Financial Services Regulatory Authority (IFSRA)..
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05 November 2004
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751 - 05 November 2004
Skandia revokes dismissal of executive
Company concludes it does not have clear grounds for mismanagement claim
Skandia has reached a settlement with Ulf Spang, one of the executives involved in the “improprieties” that shook the Swedish life insurance and savings management..
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05 November 2004
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751 - 05 November 2004
Allianz finally opts for centralised control
Group will also place a larger proportion of its investments in unlisted shares
Allianz is trying to square the circle of retaining its traditional decentralised structure while benefiting from economies of scale. In an interview with newspapers..
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05 November 2004
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751 - 05 November 2004
Converium
Since 30 June, troubled reinsurer Converium AG has commuted some $265mn in loss reserves related to prior years' business in North America, according to the company’s third quarter 2004 report. Converium is negotiating additional offers of..
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05 November 2004
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751 - 05 November 2004
Mutual partnership targets European market
The expansion into the broader European market could be the aim of the nascent partnership between French mutual insurers Macif and Maif, and the French savings bank, Groupe Caisse d'Epargne.
The two insurers already have a joint venture in Spain..
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05 November 2004
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751 - 05 November 2004
More competition in the market, but no dramatic softening of rates
Away from the Spitzer discussions, market conditions in the wake of the hurricanes were inevitably on the agenda
As the US insurance and reinsurance industry gathered in Washington DC last week for the inaugural Property Casualty Insurer..
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05 November 2004
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751 - 05 November 2004
RenRe hit hardest by hurricane losses
But, with the conspicuous exception of Converium, all the companies still have more capital than they began the year with
RenaissanceRe shouldered the heaviest burden from the unprecedented series of four hurricanes that hit Florida and the..
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05 November 2004
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751 - 05 November 2004
The global insurance industry post - Hurricane Spitzer
Alex Letts, chief executive of electronic trading platform, ri3k, says the vast majority of brokers with nothing to hide will now demand an operating framework that gives advantage to their integrity. And if they don’t do so, their customers..
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05 November 2004
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751 - 05 November 2004
Continuing to move in the right direction
The London insurance market reform programme now known as LMP can be traced back to an article written in January 1999 by Tim Carroll, then newly-elected as chairman of the International Underwriting Association (IUA). In it, he complained that..
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05 November 2004
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751 - 05 November 2004
North America
Canada set to launch own broker investigations
Two Canadian regulators have said that they will launch reviews of the relationship between insurers and brokers. The Canadian Council of Insurance Regulators and the Canadian Insurance Services..
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05 November 2004
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751 - 05 November 2004
IRDA echoes government line on increase in the FDI limit
IRDA favours legislative amendments to give insurance companies greater flexibility in terms of their investment options
Following the statement by the Indian prime minister, Mr Manmohan Singh, last month (WIR749/1), the country’s Insurance..
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05 November 2004
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751 - 05 November 2004
Asia
China encourages local insurance groups
According to its World Trade Organisation commitments, China is set to open up its industries, including the insurance industry, to foreign investment by the end of 2004. However, the Chinese authorities are..
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19 November 2004
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752 - 19 November 2004
North America
Class action suit filed against Aon
US lawfirm Wolf Popper has filed a class action lawsuit against Aon Corporation on behalf of present and former employees who participate in the group’s pension schemes in the District Court for the..
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19 November 2004
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752 - 19 November 2004
Europe
Munich Re looks at internal practices
Munich Re has launched an investigation into its dealing with brokers as a result of the New York Attorney General’s investigations. The reinsurer made it clear however that it had no reason to believe..
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19 November 2004
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752 - 19 November 2004
Group of French insurers sue Libyan state
Negotiations stalled earlier this year. Now insurers have turned to the courts
The insurers of the DC-10 airliner belonging to the French company UTA, which was blown up 15 years ago over the Tenere desert in the sub-Saharan Republic of Niger,..
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19 November 2004
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752 - 19 November 2004
Thai Re
In contrast with its steady expansion in preceding years, Thai Re took a more selective approach to underwriting in 2003
Thai Re posted a strong increase in net profits in 2003, largely due to an excellent investment result. Net income for the..
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19 November 2004
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752 - 19 November 2004
Insurance Australia Group
The improved profit reflected the increased scale of the group’s business following 2 acquisitions from UK insurer Aviva
Pre-tax profits for Insurance Australia Group (IAG) almost quadrupled in fiscal 2003/4 despite the severe weather in..
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19 November 2004
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752 - 19 November 2004
JAMAICAN NON-LIFE INSURANCE MARKET
Local companies look to expand into neighbouring markets
Although the new regulations were intended to reduce the number of companies in the market, this has yet to happen
Property and motor lines accounted for 93% of all non-life premiums in the..
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19 November 2004
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752 - 19 November 2004
Scor share price boosted by recovery in the equity markets
€550mn of catastrophe losses mean Munich Re will miss net income target of €2bn
Most of the insurance stocks monitored by WIR
closed higher on the fortnight ending 11 November, reflecting the strong performance of the US and European..
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19 November 2004
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752 - 19 November 2004
New IAIS framework for insurance supervision
Tom Karp, chair of the IAIS’s Technical Committee, on the central position of insurers’ solvency in the supervisory process
At our General Meeting last month the International Association of Insurance Supervisors (IAIS) released its new..
Online Published Date:
19 November 2004
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752 - 19 November 2004
EUROPE
Zurich Financial Services has suspended several employees in the Excess Casualty underwriting department of the Specialties Business unit of Zurich North America Commercial.
This coincided with an announcement that the insurer was reviewing its..
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19 November 2004
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752 - 19 November 2004
Platinum causes a bit of a stir
New York Attorney General Eliot Spitzer’s investigation of market practices is making insurers and reinsurers uneasy about their use of financial reinsurance
The tail end of reinsurers’ quarterly reporting season was unexpectedly..
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19 November 2004
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752 - 19 November 2004
Plans for international insurance centre take shape in Puerto Rico
But government is urged to focus on creating an open, more flexible and more competitive domestic insurance market
It is hoped that the implementation of the Puerto Rico International Insurance Center – Centro Internacional de Seguros de..
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19 November 2004
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752 - 19 November 2004
Jurisdiction: is attack the new defence for insurers?
The English Courts’ change in attitude towards negative declarations now means that insurers have the ability to prevent a claimant from choosing to start proceedings in unfavourable jurisdictions, say Elspeth Talbot Rice and Philip..
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19 November 2004
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752 - 19 November 2004
Africa
South African insurers set to drop HIV/Aids exclusions
South African insurers look likely to drop HIV/Aids exclusion clauses from all new policies from January 2005. A vote on the issue is due to be conducted by the country’s Life..
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19 November 2004
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752 - 19 November 2004
23 OCTOBER – 5 NOVEMBER 2004
Late reports
20. 10 explosion, damage
Nigeria: a heavy explosion rocked the Ajaokuta Steel Complex Limited, delaying the planned refurbishment of the plant. The explosion affected a huge electric motor in the circulating water pump of the thermal..
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19 November 2004
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752 - 19 November 2004
Government to impose compulsory health cover for employees
Members of the taskforce are said to be discussing the feasibility of the proposal with the insurance sector
Following the recommendations of the Task Force on Social Security, the Indian government is contemplating legislation making it compulsory..
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19 November 2004
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752 - 19 November 2004
CNP close to sourcing 15% of its premium income outside of France
The company considers Italy one of the more promising markets for developing personal lines business in Europe
CNP Assurances, the biggest provider of personal lines cover in France, has paid €575mn (US$742mn) for a 57.5% stake in..
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19 November 2004
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752 - 19 November 2004
PZU now has a 27% share of the Lithuanian insurance market
The Polish insurer fully expects its Lithuanian businesses to become profitable by around 2006 or 2007
Polish insurer PZU plans to complete the integration of its Lithuanian subsidiaries by the end of this year. The businesses of Lindra (which used..
Online Published Date:
19 November 2004
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752 - 19 November 2004
Natural catastrophes, sadly, do not concentrate the mind
In Honduras, where 5,000 people were killed by a hurricane in 1998, nothing has been done to prevent another disaster
The recent hurricanes and storms which have swept through the Caribbean did not just affect Florida, but also caused havoc in..
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19 November 2004
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752 - 19 November 2004
The uses and abuses of mediation
Prior to the 1980s, very few reinsurance cases came before the Courts. Since that time, with billions of dollars at stake and a proliferation of insurance and reinsurance companies going into run off or in financial difficulties, more and more..
Online Published Date:
19 November 2004
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752 - 19 November 2004