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Welcome to our Monthly Newsletter – March 2008
An Established and Successful Force in International Insurance Worldwide Risk Solutions is a U.K. based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information about us, please go to www.worldwiderisksolutions.com. Since Our Last Newsletter As we pass through the first two months of the year, people are still talking about what will happen this year: continuing soft market, higher incidence of natural catastrophes, more consolidation, etc. London is ratcheting up the attention to its role as a specialist market and Lloyd’s is seeking greater penetration in the continent of Europe. The larger carriers are on the move into emerging markets and especially in the Far East bancassurance and takaful continue to gather momentum. It is in these latter two areas that insurance brokers are relatively quiet. As both bancassurance and takaful become an irreplaceable part of the markets in key segments of the globe, one can expect the entrepreneurs to seek and find opportunities to play a role. As usual, those people with the right contacts will have an advantage. If you would like to discuss your international strategies with us, please contact us. In our SPOTLIGHT series we will help you understand the way different markets around the world operate so that those of you who do business there can feel more "at home abroad". Different does not need to mean difficult but knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. This helps avoid misunderstandings and unfulfilled expectations. We have now done articles on Vietnam, Takaful, Taxation and more; if you would like copies, please let us know. New Zealand Current State of the Insurance Market Like everywhere else, it seems, in the world, the market here continues to be “soft, soft, soft”! Despite the four major players (NZI, QBE, Vero & Lumley) stating that they will increase/review rates on renewal by 5% or so, (not that that’s really acceptable without reason to brokers – e.g. adverse claims) it is a different story when it comes to new business. The same risk which an underwriter will not reduce pricing on for renewal would be readily accepted at lower rates if presented as new business. The interest rates are currently very high in New Zealand, (floating house mortgage rates are around 10.7%) so this is helping to keep underwriter investments at a good level, even if underwriting results are deteriorating. We guess the market will remain soft for some time yet, unless there is a major natural disaster (local or global), the investment returns deteriorate or the underwriters’ directors demand better underwriting returns. Certainly, the pressure is currently on some underwriters with the blow torch being firmly applied to the Y fronts by some senior management! Legislation The New Zealand insurance market is generally pretty un-regulated at the moment. However, this is all about to change. Following a spate of finance companies collapsing recently, coupled with some substantial undisclosed commissions received by certain financial advisers, the Government has introduced proposed legislation as follows: Unable to Sue for Bodily Injury in New Zealand Yes, this is true!! Under the Accident Compensation Act 1972 (with various subsequent amendments/legislation) one is not able to litigate for bodily injury (including medical malpractice) claims from virtually any cause, 24/7. This was extremely radical in its day and remains so in 2008. Law students throughout the world review the unique nature of this act. However, it has worked extremely well. Injured parties are taken care of by the government established Accident Compensation Commission. Naturally, there are limitations, however, for more information, see www.acc.co.nz Summary Certain aspects of the New Zealand economy are extremely buoyant (dairy industry) and other aspects are pretty depressed (transport, exporters). Nevertheless, there is a shortage of skilled (and un-skilled) labour and the unemployment rate is only 3.4%. Wages are generally strong as a result and it is difficult to find staff. In the broking/insurance sector, there is a severe shortage of young (under age 35) people, which will cause major problems in ten years or so, when the majority of current brokers will retire. In preparing this Spotlight article we have received invaluable assistance from Insurance Brokers International) Ltd in Auckland (www.ibi.co.nz e-mail nick.cressey@ibi.co.nz) for which we are grateful. If you would like Worldwide Risk Solutions to conduct an economic, business and insurance survey of any international markets please contact us – Details below. Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. And should you be passing through London, please let us know. We are very pleased to announce that our next two e-newsletters we will feature Highlight articles in collaboration with Benfield Research at Benfield Group. The first will discuss the escalation of Flood Risk, global floods and the human factor.
For more information about any of the items discussed in the current or previous issues of WoRdS, please see our Contact Details George Worsley, Director |
Talk Around the Bazaar * * * * * * * * * * We are currently discussing projects in the following markets and are regularly being asked to attend the annual conferences and meetings of the major networks: * * * * * * * * * * We continue to work with a growing number of networks to improve and expand their international capabilities. If you have not already spoken to us about expanding your international markets, now might be the right time for us to conduct a feasibility study. For more information, please see the contact details below. What Clients Say “Once again Worldwide Risk Solutions has the contacts we needed" ““That they have personal relationships in so many countries has been of immense value to us” * * * * * * * * * * Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. CONTACT US BY POST BY TELEPHONE BY E-MAIL BY SKYPE Disclaimer |
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