July 2013

Talk Around the Bazaar

Four Lloyd’s insurers have formed a consortium to handle large global construction accounts. Seen as a challenge to the international company market, the syndicates will combine expertise and capacity, while at the same time enhancing Lloyd’s reputation to handle huge construction business on a worldwide scale. For further detail, please go to http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=200513561-1357989071&userEmail=george.worsley@worldwiderisksolutions.com#top

Environmental liability insurance in Asia has not really taken off. One of the reasons has been the regulatory climate; another has been a lack of sufficient risk data for pricing. This is set to change with the introduction of a compulsory insurance plan in China. This development could recharge the enthusiasm in the Asian markets and see a surge in growth of pollution insurance in the region. OTC Markets describes this well at http://www.otcmarkets.com/news/otc-market-headline?id=15175704

Privatisation of IRB-Brasil Re is on the cards. One of the country’s oldest state-run corporations and at one time, the state-owned monopoly, will end up with diluted government participation. This is a good move in the on-going saga of other players’ ability to get effective involvement in the Brazilian insurance and reinsurance market. The Wall Street Journal has more information at http://online.wsj.com/article/BT-CO-20130607-709023.html

According to interviews with leading delegates at the recent World Takaful Conference in Dubai, “takaful is still the poor relation in Islamic finance.” People must reflect on the reality of the saying that Rome was not built in a day. Obviously one has to set realistic expectations and understand the influences on growth and development and keep these in line with perceived needs and the availability of money to achieve momentum. CPI Financial discusses some of the issues at http://www.cpifinancial.net/flipbooks/IBF/2013/Apr/files/assets/basic-html/page6.html

We are fortunate to be on the mailing list of quite a few international insurance organisations and can whisper to our readers that many of them are difficult to read and seem keener on self-promotion than on being informative. An example of a simple and concise piece of news comes from our good friends JMD Ross in Sydney, as one can see here http://us4.campaign-archive2.com/?u=c40267b0a5d3921d3b8873b3c&id=80661baf81&e=[UNIQID]

At the AIRMIC conference held in Brighton, UK insurance and risk managers, brokers and carriers had a forum for some useful discussions. One item which has been on the table for several months is the proposal by Zurich that its multinational insurance application database could form the platform for a common industry approach to regulatory and tax compliance for international insurance programmes. Not a bad idea, especially if all the big players were to participate. Do we really need fifteen global carriers and brokers each telling us that only they are right and all the others are wrong? The jury is still out on that point but in the meantime, Commercial Risk Europe looks at some of the points raised recently at http://www.commercialriskeurope.com/cre/2361/15/Zurich-invites-other-insurers-to-collaborate-on-database/

Also at AIRMIC, AIG launched interactive tools to aid multinational programme design. Global Risk picked this up and the news can be seen here, http://www.globalriskmagazine.com/airmic-2013-aig-launches-interactive-tools-to-aid-multinational-programme-design/?utm_campaign=12+June+GR+Airmic+snapshot&utm_source=emailCampaign&utm_medium=email&utm_content=

In accordance with the saying that big is not always beautiful, a small group of islands in the South Pacific have enhanced their value to the international insurance community. To find out who this is, please read the article from Captive International at http://www.captiveinternational.com/news/cook-islands-passes-captive-legislation?utm_source=Insurance&utm_campaign=1ad0a59e54-Captive_Weekly_News_20_06_2013&utm_medium=email&utm_term=0_f246694353-1ad0a59e54-27166897

In the latest round of “anything you can do, I can do better,” Qatar is following the example of Oman in anticipating seismic activity in the region. Oman plans expanding the number of stations monitoring seismic activity in the Sultanate and its surroundings and Qatar responds to the recent earthquakes in Iran by calling for new standards and specifications for buildings. The Peninsula has the full story at http://thepeninsulaqatar.com/qatar/240726-seismic-code-for-buildings-by-year-end.html

Famous quotations. Here are some words of wisdom which have survived the passage of time…

· “Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws,” Plato

· “Life would be infinitely happier if we could only be born at the age of 80 and gradually approach 18,” Mark Twain