September 2015

AN ESTABLISHED AND SUCCESSFUL FORCE in International Insurance

WORDSTM is the e-newsletter of Worldwide Risk SolutionsTM, a UK based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information, please go to www.worldwiderisksolutions.com

WORDSTM – September 2015

Comment of the Month In the Oil Gas and Energy world, every day brings something new. The Johan Sverdrup oilfield in the Norwegian part of the North Sea will be by far the largest producing oilfield when it reaches its peak from 2019 onwards. The Italian firm Eni has just discovered what is described as the largest ever gas field in the Mediterranean. However controversial it may be, shale gas production in the United States is pushing the availability of alternatives to oil to such a high level that the ban on exporting US oil is likely to be repealed soon.

The price of a barrel of oil is at its lowest for more than five years, prompting vast reductions in expenditure on exploration and production. Seeing as demand has not reduced, the reason why prices have not followed the economic law and increased is that OPEC, the Organisation of Oil Producing and Exporting Countries, has not recommended any production slow-downs. The US, Russia and Saudi Arabia lead the world in oil production. The US and Russia dominate natural gas production and with its North Pars field and share of South Pars field nearly ready, Iran will soon zoom into third place.

What does all this mean for the insurance and risk management industry? For Upstream risks, due to the reduction in exploration, development and construction, the market is treading water. For Midstream risks, transportation, storage and processing facilities are bursting. For Downstream risks, refineries, petrochemical plants, fossil fuel power stations, etc, are all running at full capacity and this means plenty of business for brokers and insurers.

There is a vast area of expertise in the oil, gas and energy insurance market where OEE (Operator’s Extra Expense) wordings which cover the cost of regaining control of a wild well vie with EED (Energy, Exploration and Development) wordings offering specialised cover for Control of Well, Redrilling/Extra Expense and Seepage and Pollution, Clean-up and Containment. The whole gambit of property, liability, construction, marine and environmental insurances has been adapted for oil gas and energy risks and it has become one of the specialist markets where there are great career opportunities.

Talk around the Bazaar What did Guernsey do to the European Commission? What has the Insurance Council of New Zealand done since the 2011 earthquake in Christchurch? How big is the Vietnam insurance market? We keep you abreast of the latest developments with our comments and hyperlinks.

Spotlight – In international business, almost every market around the world does things in a different way. This often leads to misunderstandings and unfulfilled expectations. However, different does not need to mean difficult and knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. These articles help you understand different aspects of the insurance industry around the world, enabling those who do business there to feel more “at home, abroad.”

According to Standard & Poor’s, the ASEAN Economic Community which is set to take shape at the end of 2015, will provide insurers with huge opportunities for increased market access in the Association of Southeast Asian Nations region. We wonder how many of our readers were aware of this eagerly awaited group.

AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. This is heady stuff. What interests us is how this affects the insurance industry. One firm poses questions many of us would ask and provides answers. Milliman, an independent firm delivering market-leading services and solutions to clients worldwide for more than 60 years has published research entitled “Potential Implications of the ASEAN Economic Community for the life insurance industry.” We are very pleased to be able to provide a link to this at http://www.milliman.com/uploadedFiles/insight/2015/20150724_Potential%20implications%20of%20the%20ASEAN%20Economic%20Community.pdf

Any questions or comments should be directed to the Consulting Actuary, David Kong at david.kong@milliman.com

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Madrid, 8th October 2015

Hotel Hesperia, Paseo de la Castellana 57, 28046 Madrid

Consumer expectations with regards to products and services are changing fast, as usage of Digital Channels becomes more common both inside and outside financial services. Certain age groups and consumer demographics are more affected by this trend than others. Certain countries are ahead on the game in this transformation, while others are following.

The “Global Summit for Insurance Innovation” Forum will bring together market leaders from many different European countries at different level of maturity with regards to Innovation and Digital to discuss the newest trends and challenges in meeting and exceeding customer expectations.

Insurance leaders have to address these strategic and operational challenges in order to build an integrated Customer Experience which brings together their value propositions across multiple touch-points, distribution channels and customer segments.

So, in the Forum, we will hear and learn from these business leaders both about “disruptive” / revolutionary innovation to the insurance established business models, as well as incremental / evolutionary changes which insurers, even those with more traditional business and distribution models, can bring into their proposition.

Come and join us at the “Global Summit for Insurance Innovation” Forum, share your experiences and discuss your point of view with the most influential executives, so you can take your business to the next level!

To register, please go to http://innovation.inese.es/

The Presse Internationale des Assurances – “PIA”

The leading authority and PIA member in Poland is Wiadomosci Ubezpieczenowe or the Polish Insurance Association. PIU has just published the results and comment on the first half of 2015 in the Polish market. This can be studied at http://www.piu.org.pl/analysis-and-publications/project/1897/pagination/1

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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 AS WELL AS ASSIST INSURANCE ORGANISATIONS IN:

  • · Australia
  • · Bangladesh
  • · Canada
  • · China
  • · Guernsey
  • · India
  • · Netherlands
  • · United Kingdom
  • · USA

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.

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As part of the on-going service of assistance to our friends around the globe, Worldwide Risk Solutions is ideally placed to help unlock the mysteries of the Lloyd’s and London insurance market. With new products and market entrants, there is always something new going on. In many cases the solution to your problem is around the corner. Send us an e-mail and we can start the process of finding that elusive solution

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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.

George Worsley, Editor
WORDSTM a member of http://insurancepress.eu/

Telephone +44 (0)1444 450 919
E-mail words@worldwiderisksolutions.com

Website www.worldwiderisksolutions.com

Disclaimer

Information appearing in WORDSTM is checked for technical accuracy but is not intended to provide a basis of knowledge upon which advice can be given. Worldwide Risk SolutionsTM accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this newsletter.