November 2012

Talk Around the Bazaar

When one considers that each of the 50 states in the USA has its own rules for administering and taxing insurance and the same applies to the way the 27 states of the European Union interpret directives coming out of Brussels, it is easy to underestimate the size and effectiveness of a task which a group of regulators from the US and the EU are attempting: to harmonise US and EU insurance regulation. Insight has the inside story at http://www.insuranceinsight.com/insurance-insight/news/2213569/eu-and-us-seek-to-harmonise-insurance-regulation as it discusses some of the items which were on the agenda for a series of meetings held in Washington and Brussels in October

Elsewhere in the States, emotions warmed up at the IAIS annual conference when leading players from the industry debated group supervision as reported by Advisen at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=186072044133648434&userEmail=george.worsley@worldwiderisksolutions.com#top

A recent court decision in France has extended the liability of French companies to incidents occurring in international waters. A ship registered in Malta which carried oil owned by Total sank on the high seas. Total was held liable for environmental damages to the French coast caused by oil form the sinking tanker. The extended implications for firms like Total form a good report by Commercial Risk Europe at http://www.commercialriskeurope.com/cre/1711/56/France-s-Total-decision-raises-the-risk-of-liability-on-the-high-seas/

For years insurance carriers (and others) have been complaining that they cannot do enough to develop the Indian insurance economy because the level of foreign ownership was too low at 26%.  At last this is set to change. Bloomberg Businessweek talks about the change to 49% at http://www.businessweek.com/news/2012-10-04/india-clears-fdi-in-insurance-pensions-as-singh-reboots-economy

China is set to become a middle-income country by 2020. This is reported by Want ChinaTimes at http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20121011000081&cid=1102&MainCatID=11 With the country’s commercial market already the third largest in the world, private lines insurer will face a challenge of developing and distributing products for this burgeoning middle class. Our Spotlight article discusses this as well as much more

For some advice Chinese insurance providers can go to the Insurance 360 “2012 Insurance Industry Report” http://www.insurancehound.co.uk/abstract/2012-insurance-industry-report-inside-track-achieving-sustainable-business-10499?from_email=true&subscriber_id=155814 where Insurance Hound helps Personal Lines insurers to discuss the inside track to achieving a more sustainable business

China Daily reports that oil giant PetroChina has been given permission to establish a captive insurance company, as readers can see at http://www.chinadaily.com.cn/business/2012-10/12/content_15814180.htm

In October Guernsey Finance sent a high level tem to Asia and they spent time in Beijing and Shanghai. People can access their website in Chinese at http://www.guernseyfinance.com.cn/ Captive Review has a short article on developments with Guernsey Finance at http://www.captivereview.com/news/1721507/guernsey-makes-pure-captive-net-loss.thtml?utm_campaign=Guernsey+makes+pure+captive+net+loss&utm_source=emailCampaign&utm_medium=email&utm_content=

UAE countries are working on federal law for compulsory health insurance. The magazine Arab Health spoke to a local expert and you can study his findings at http://www.arabhealthonline.com/Publications/EbookArticles/EbookMarch2012Art11/

The World Bank and the Islamic Development Bank have signed a Memorandum of Understanding to set out a framework for collaboration between the two parties and lend support to global, regional and country efforts in the development of Islamic Finance. There is a very good article on the World Bank’s website, http://www.worldbank.org/en/news/2012/10/14/world-bank-islamic-development-bank-sign-memorandum-of-understanding-islamic-finance

Insurance executives are saying that armed guards have cut Somali piracy. This is good news as readers can see in an Advisen story at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=1859824441447259363&userEmail=george.worsley@worldwiderisksolutions.com#top The bad news is that in western Africa the trend is being reversed as The Indian Express tells us at http://www.indianexpress.com/news/nigerian-pirates-latest-threat-to-indian-sailors/1020742/

Most of our readers will know that non-admitted insurance coverage is prohibited in Colombia. This is set to change. Commercial Risk Europe has the full story at http://www.commercialriskeurope.com/cre/1736/247/Colombia-opens-up-insurance-market-to-tackle-capacity-constraints/

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

  • A manned rocket can reach the Moon in less time than it took a stagecoach to travel the length of England
  • The Earth travels through space at 660,000 miles an hour