August 2013

Talk Around the Bazaar

The debate in the Netherlands surrounding the question of mandatory flood coverage has subsided. The Dutch Competition Authority (ACM) said that such an approach violated competition law. There are still some solutions available as Insurance Insight reports at http://www.insuranceinsight.com/insurance-insight/news/2278592/dutch-insurers-urged-to-offer-riskbased-flood-cover?wt.mc_ev=click&WT.tsrc=Email&utm_term=&utm_content=Read%20more%20%C2%BB&utm_campaign=1%20July%202013&utm_source=Insurance%20Insight%20Daily%20Newsletter&utm_medium=Email

FERMA has gone some way in agreeing that compulsory schemes for catastrophe insurance should be discouraged (see the press release http://www.ferma.eu/2013/07/ferma-discourages-eu-from-compulsory-schemes-for-catastrophe-insurance/). Insurance Europe has added some thoughtful comments in their press release relating to the European Commission’s green paper on Insurance of Man-made and Natural Disasters. This can be accessed at http://www.insuranceeurope.eu/uploads/Modules/Newsroom/tailored-approaches-essential-to-european-disaster-management.pdf

Ever in the news these days, FERMA has altered its bylaws so it may admit two new categories of members: individuals and companies with an interest in European risk management. There will be no geographic restrictions and so our Aussie friends can join at last. For the full report and the rest of their news, go to http://www.ferma.eu/wp-content/uploads/2013/07/ferma-newsletter-54.pdf

South Africa’s government is reviewing a new model for regulating the financial industry, including the insurance sector. One of the anticipated results will be an increase in the cost of compliance while strengthening oversight and transparency. The Oxford Business Group has a report at http://www.oxfordbusinessgroup.com/economic_updates/south-africa-insurance-regulatory-changes-cards

Another well-prepared document by the Oxford Business Group is their report on the Moroccan insurance industry where they highlight the vital role Takaful is expected to play in the country’s insurance sector. To read this, please go to http://www.oxfordbusinessgroup.com/economic_updates/maroc-le-secteur-des-assurances-pr%C3%AAt-pour-lexpansion#english

In a further move to open its markets to capital investors, the Chinese regulator has amended the rules on cross-border reinsurance transactions. The Renminbi Qualified Institutional Investor Programme has been expanded from Hong Kong and Taiwan to include Singapore and London. To find out more about the ramifications of this move, please click on http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=202546316-827313006&userEmail=george.worsley@worldwiderisksolutions.com#top

Following the example of other successful captive havens, like Guernsey, the Cayman Islands have introduced incorporated cell legislation for the insurance sector. Captive International explains what this means at http://www.captiveinternational.com/article/cayman-introduces-incorporated-cell-legislation-for-insurance-sector?utm_source=Insurance&utm_campaign=6c8ab01085-Captive_Weekly_News_18_07_2013&utm_medium=email&utm_term=0_f246694353-6c8ab01085-27166897

On the 28th July, Croatia became the 28th member of the European Union (http://www.ecb.europa.eu/press/pr/date/2013/html/pr130701.en.html) and the President of the European Commission gave a short welcoming speech at http://europa.eu/rapid/press-release_SPEECH-13-589_en.htm?locale=en. One of the first moves of the latest addition to the club was for Croatia to privatise the last state-owned bank as well as the country’s main insurer. Advisen discusses thus step at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=202687298391043411&userEmail=george.worsley@worldwiderisksolutions.com#top

Recently, more than a dozen African countries strengthened legal certainty for multinational companies working in the region by adopting of a common set of insurance rules. This has, however, created challenges for multinational insurance companies and their international programmes. Commercial Risk Europe provides their usual excellent comments, views and suggestions at http://www.commercialriskeurope.com/cre/2519/247/African-code-creates-mixed-blessing-for-MIPs/

Asia-Pacific’s first Sharia-compliant captive is on the way. In 2010, guidelines for Sharia compliant captives were developed by the Labuan International and Business and Financial Centre (IBFC) and now according to a report in Strategic Risk, the first Sharia-compliant captive structure is now being set up. For more detail, please see http://www.strategic-risk-global.com/story.aspx?source=NewsAnalNewsAlert&storycode=1403646

Following the example set by Abu Dhabi, the United Arab Emirates federal government is set to make health insurance mandatory for all employees. Lexology has the details at http://www.lexology.com/library/detail.aspx?g=a2d7812e-d212-44a1-8343-e6866702fd25 and the next question is when will this happen?

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

· “One doesn’t discover new lands without consenting to lose sight of the shore for a very long time,” André Gide

· “Some people approach every problem with an open mouth,” Adlai Stevenson