February 2013

Talk Around the Bazaar

FERMA, the European risk management organisation has appointed a European Affairs Adviser: Julien Bedhouche. This is a welcome development where the industry needs to keep tabs on Euro-politicians. His role will be and promote the interests of FERMA members in terms of EU regulation and with European institutions. He will contribute to monitoring and assessing forthcoming EU legislation in the field of risk and insurance management and evaluate the impact of regulatory proposals on FERMA members’ activities and he will coordinate the formulation of FERMA positions in close collaboration with members. Read more in the article from Strategic Risk at http://www.strategic-risk.eu/story.aspx?source=NewsAnalNewsAlert&storycode=1400455

Strong growth in the Takaful sector has been predicted for 2013. Currently Malaysia is the world’s premier Islamic finance centre, even though the Gulf states and Saudi Arabia have bigger Islamic banks and Indonesia the largest Muslim population. It is expected that it will grow by 20%. Advisen quotes Hindustantimes at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=1914450631476698293&userEmail=george.worsley@worldwiderisksolutions.com#top

Allianz has become the latest carrier to receive a local reinsurance licence in Brazil. The company sees Brazil as the hub for their business development in Latin America as Bloomberg reports at http://www.bloomberg.com/news/2013-01-15/allianz-reinsurer-wins-brazil-reinsurance-license.html

Following announcements that Beijing, Shanghai and Shenzhen are considering the establishment of an insurance exchange, local authorities in Guangzhou are considering a proposal to open one in their city. Canfair reports on this at http://www.canfair.com/insurance-exchange-being-proposed-in-guangzhou/

When Guernsey reformed its Intellectual Property laws and produced a set of legislation which establishes the Island as a leading offshore jurisdiction for the development and exploitation of Intellectual Property Rights, it led to a great deal of interest in this niche area. Recently, an Image Rights seminar was held by the Bailiwick of Guernsey’s Intellectual Property Office (see the website http://ipo.guernseyregistry.com/article/3865/Intellectual-Property-Office-Home-Page). Risk transfer solutions for a broad range of Intellectual Property risks is a complex subject and for a good overview of enforcement and infringement liability solutions, one can do no better than to contact Samian Underwriting at http://www.samian-underwriting.com/index.html

As China continues to develop its economy with ventures outside the country, insurance has not really followed this in the same sophisticated way and we saw with the western world after the second world war. The solutions available to cover risks and exposures of Chinese companies outside their homeland have lagged behind the opportunities. Brokers in the Chinese market have largely concentrated on local risks and even their links with overseas brokers have focussed on the exposures of foreign companies operating within China. A recent and very welcome development has been the establishment of a brokers association aiming to provide protection for the interests of Chinese enterprises outside China. So recent is this development that Jiang Tai International Associates has not yet completed its website. For an overview of what took place in Beijing, please consult China Daily at http://www.chinadaily.com.cn/business/2013-01/17/content_16134125.htm and watch this space for more news

Mind you, insurance premium growth in China has not been spectacular. In 2012 premium income rose by 8% and compared to the previous year, it is a positive development but not when compared with many neighbouring countries. China Daily has a lot of information which can be accessed at http://www.chinadaily.com.cn/business/2013-01/23/content_16166628.htm

A lot has been happening on the European tax and regulatory front and none of it will see the average man and woman getting any richer. On the contrary, governments are taking more out of our pocket to gloss over their inability to balance the books. All the same, we have to complement Commercial Risk Europe for gathering many of these facts and bringing them together in their news document to be read at http://www.commercialriskeurope.com/cre/1939/247/Tax-and-regulatory-news/

The Qatar Financial Centre (QFC) Regulatory Authority has released rules covering three areas of regulation to keep its rules in line with international regulatory standards for insurance and banking supervision. These are clearly set out and include time-frames and can be accessed at their website  http://www.qfcra.com/Press%20Releases/2013/New_Rules_17012013_ENG.pdf

Now that the 2012 Atlantic Hurricane season is well behind us, the results are in and the judgements made. Planning and predictions for 2013 are in the make but what was 2012 really like? Artemis has a concise overview and we can recommend this to our readers at http://www.artemis.bm/blog/2012-atlantic-hurricane-season/

For a different way of looking at things, try the Wikipedia approach and study the Pacific Typhoon season with them at http://en.wikipedia.org/wiki/2012_Pacific_typhoon_season

The Global Federation of Insurance Associations opened its doors last October and is now busily filling its agenda with activities aimed at representing national and regional insurance associations which serve the general interests of life, health, general insurance and reinsurance companies and making representations to national governments, international regulators and others on their behalf. For an idea of where you will come across them, try the Members’ Events section of their website at

http://www.gfiainsurance.org/en/Members-events/Upcoming-events/

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

  • Two rats can become progenitors of 15,000 rats in less than a year
  • Bamboo (the world’s tallest grass) can grow up to 90 centimetres in one day