August 2012

Talk Around the Bazaar

The latest Lloyd’s Update report covering the market’s 2011 financial results and business position in 2012 has been published. At £4.6 billion (US$7.4 billion), major losses were more than double the prior year level and more than three times the long-term average. They represented 25.5% of net premium earned and 24.1% of opening net resources (both lower than in 2001 or 2005). Despite the unprecedented major loss burden in 2011, members’ Funds at Lloyd’s, the market’s central assets and overall solvency coverage remain at record levels. With Insurance Hound, you can access the full report at http://www.insurancehound.co.uk/abstract/lloyd-update-fy-2011-results-13875?from_email=true&subscriber_id=155814

In the past we have published articles provided by the Guernsey International Finance Centre. Their Insurance page is worth further study at http://www.guernseyfinance.com/insurance and we can recommend readers take look

Another attractive destination for good weather and insurance are the British Virgin Islands. Maples & Calder have put together some interesting information about the local insurance industry and this can be found at http://www.maplesandcalder.com/news/article/opportunities-for-captives-under-the-british-virgin-islands-insurance-act-325/

In today’s fast-moving business environment, FM Global has remained at the forefront of property loss-prevention research and engineering and insurance-industry issues. Some of their publications are excellent. Take the example of Aftershocked, a series of interviews with people affected by the earthquake and tsunami on the 11th March 2011.  A compulsive read at http://www.fmglobalreason.com/article/aftershocked

Twenty years ago, the United States was rocked by Hurricane Andrew. The Insurance Information Institute has written a Legacy of the event and the lessons to be learned. Readers will find this at http://www.iii.org/assets/docs/pdf/HurricaneAndrew-0627121.pdf

Certainly not to be outdone in the knowledge sector, the Chartered Insurance Institute regularly provides good information on what is happening around the world. They recently updated their report on the insurance regulatory regime in Hong Kong as one can see at http://www.cii.co.uk/knowledge/policy-and-public-affairs/articles/cii-thinkpiece-81-insurance-regulation-in-hong-kong/19756

The European Network and Information Security Agency (ENISA) has called on the insurance market to rise to the fast-emerging cyber risk challenge and develop a vibrant market to help European business cope with this critical risk. Commercial Risk Europe discusses this at http://www.commercialriskeurope.com/cre/1515/56/EU-report-calls-for-kick-start-to-cyber-insurance-market/

Insurance Europe has updated its series of statistics on the European insurance market to include 2010 data. The series now covers the years 2001 to 2010, showing changes in the life and non-life sectors, insurers’ investment portfolios and insurance companies, employees and distribution channels and can be accessed at http://www.insuranceeurope.eu/newsroom/544/51/Updated-statistical-series-now-available/

There seems to be a trend catching on with guidance for designing and implementing multinational insurance programmes! The latest player to produce a guide is AIRMIC in England. They have produced an authoritative document which we can recommend. One needs to register and then log in to access this but it is well worth it at http://www.airmic.com/research/guides/airmic-guide-compliance-multi-national-insurance-programmes

Piracy is a threat to all sizes of vessels in some parts of the world. The more we know, the more we can minimise the risks and react to dangerous situations – or avoid them altogether. To this end the International Marine Contractors Association (IMCA) has produced an Anti-Piracy & Hostage Situation Awareness DVD (IMCA SEL 028) in five languages on the one DVD (English, French, Spanish, Italian and Portuguese) as guidance for personnel working on board vessels operating in high risk areas. Produced in conjunction with Solstad Shipping, Subsea 7 and Technip, with support from Team Marine, IMCA SEL 028 costs £10 +VAT for members and £20 + VAT for non-members and is available from www.imca-int.com (under SEL publications); and from IMCA, 52 Grosvenor Gardens, London SW1W 0AU, e-mail: publications@imca-int.com

A recent study reported by the Ceylon Times concluded that there is huge scope for health insurance in the Sri Lanka. It is interesting to read the thoughts of a local reporter at http://www.ceylontoday.lk/22-9918-news-detail-huge-scope-for-health-insurance-in-sri-lanka.html

Strategic Risk magazine reports on an unprecedented development in Greenland. See if you can guess what it is before checking at http://www.strategic-risk.eu/story.aspx?source=NewsAnalNewsAlert&storycode=1397796

Business Insurance has written an article outlining the US view of Brazil as a country where foreign insurance companies have opportunities. This can be found at http://www.businessinsurance.com/article/99999999/NEWS040102/120309939?tags=|59|331|338|76|313

The process of accession to the international motor insurance system (Green Card) in Azerbaijan has started. Our PIA member in Romania, XPrimm, has the details at http://www.xprimm.com/AZERBAIJAN-Green-Card-analyzes-Azerbaijan-s-insurance-market-articol-2,12,39-2387.htm

Recently politicians in England have murmured that relaxation of sanctions against Zimbabwe could be considered. Despite the maniacal behaviour of those who hold power in the country, some organisations have managed to keep their head above water. One such body is the Insurance Institute of Zimbabwe; let them tell you what they are doing by going to http://www.iizim.co.zw/

Some prominent industry professionals have recently formed a new risk management consultancy which aims to provide independent, unbiased risk management services to all stakeholders in the insurance value chain — corporate risk managers, insurers / reinsurers and brokers. Global Risk Experts is based in Switzerland and also has offices in Malaysia. It offers an extensive range of risk management services including: line-of-business specific risk assessments, risk engineering support services, off-shoring / out-sourcing, e.g., desktop studies / analysis, information collection, reviewing engineering reports, etc, training for corporate and plant EHS personnel and executive and manpower search. More information, including contact details, can be found on their website: http://www.globalriskexperts.com/home.html

Did you know? Here are some interesting facts which could come in handy to know…

  • Scuba stands for “self-contained underwater breathing apparatus”
  • Bookkeeper and bookkeeping are the only words in the English language with three consecutive double letters