January 2013

Talk Around the Bazaar

Guernsey’s zero-10 corporate tax regime has been given the final seal of approval by the European Union. Readers can find out how pleased they are on the island at http://www.insuranceinsight.com/insurance-insight/news/2230934/guernsey-s-zero10-regime-gets-eu-approval

The latest news from India is that it is not slowing down; it is in transition. A report by India Insure tells us that Indian insurance industry fell from the eleventh to the fifteenth place in world insurance market rankings. The report offers an insight into the state of the market and anticipated trends and can be seen at http://www.indiainsure.com/Non_Life_industry_report_2012.html Any questions should be directed to Ms Deepali Rao at deepali.rao@indiainsure.com

“Most policymakers acknowledge and believe that insurers are different from banks and carry less systemic risk. However, no quantitative comparison of insurers to banks using the relevant criteria of the FSB/IAIS has been available to date.” These words appear in a report by the Geneva Association entitled Cross industry analysis 28 G-SIBs vs. 28 Insurers Comparison of systemic risk indicators and which can be accessed at http://www.genevaassociation.org/pdf/News/GA2012_Benchmark_Study.pdf

Further pertinent comment on the report by the Geneva Association is offered by Artemis at http://www.artemis.bm/blog/2012/12/11/global-insurers-pose-less-systemic-risk-than-global-banks/

In England, the debate is heating up on the cost of whiplash claims relating to victims of traffic accidents. According to the British Insurance Brokers Association, “the UK is the whiplash capital of Europe, fraudulent claims … are driving up premiums.” This is a serious issue and the government is to tackle this epidemic. The BIBA press release is at http://www.biba.org.uk/MediaCenterContentDetails.aspx?ContentID=3210

Lloyd’s has published its ‘Energy and Enterprise’ three-year plan. The plan was developed with the Lloyd’s market and focuses on the first steps needed to deliver Lloyd’s longer term strategy – Vision 2025 – which was launched earlier this year. This well-thought out approach, http://www.lloyds.com/~/media/Files/Lloyds/About%20Lloyds/Three%20year%20plan/2013%203%20year%20plan.pdf discusses growth and diversification, streamlining and enhancing distribution, amongst other things is certainly worth study

According to reports from various sources, China will be the world’s second largest Life insurance market by 2020 (just about seven years from now!), taking the number two spot away from Japan. Read what China Daily says at http://usa.chinadaily.com.cn/business/2012-12/05/content_15986876.htm

It is not only in insurance that China is attracting attention. In-depth studies are now coming out which look at those industries which are making an impact. Millward Brown has a very good report on the Top 50 most valuable brands on a wide screen it makes interesting reading and the photographs are excellent as one can find out at http://www.millwardbrown.com/brandz/2013/China/Docs/2013_BrandZ_ChinaTop50_Report_EN.pdf

One of the many good things about the Chartered Insurance Institute is the Thinkpiece approach, promoting debate and fresh thinking in the financial services industry. One such publication is entitled The Rise of the Dragon: Opportunities in Insurance Broking Markets in Hong Kong and Mainland China. This is available at https://www.cii.co.uk/media/4049338/tp92_ngan_china-hk_mkt_23nov2012.pdf

For those of you who did not make to England this summer for the Olympics, there is still the chance to contribute to the nation’s Treasury – if you feel in a philanthropic mood , that is. TMF is telling us that the “UK has higher than average sales tax” and pays twice as much tax on shopping and household bills when contrasted with countries in Asia Pacific. Maybe that is why it is all happening out there. Read their report at http://www.tmf-group.com/blog/post.aspx?bid=801503594 and make your own mind up!

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

  • It takes more than 500 peanuts to make one 12-ounce jar of peanut butter
  • The abbreviation ORD for Chicago’s O’Hare airport comes from the old name Orchard Field