September 2013

Talk Around the Bazaar

The latest carrier to join the club of international and global programme insurers is Allied World. With all the talk of compliance, burgeoning databases and servicing platforms, it is refreshing to see a new kid on the block. True, Allied World has been around for a while but Allied Worldwide is new and has a product every self-respecting broker will test and hopefully recommend to their clients. Commercial Europe discusses this at http://www.commercialriskeurope.com/cre/2553/56/Allied-World-bids-for-entry-to-exclusive-European-and-global-club/

RMS, the catastrophe modelling firm, has announced the release of its North Atlantic hurricane model suite, version 13.0. It is hoped the new model will raise awareness in the risk and insurance industry about the real and potential threat of storm surge which it believes is currently underestimated. There has already been quite a lot written about this and Global Reinsurance Intelligence has some good comments at http://www.globalreinsurance.com/rms-updates-hurricane-model/1403792.article

In the light of the many natural catastrophes besetting and threatening the Philippines and how these affect a large part of the population, it should not surprise anyone that the country is mulling a mandatory Earthquake Insurance law. Advisen reports on this and to us, it is not so much closing the stable door after the horse has bolted but more like building a stable before you have the horses. To make you own mind up, please go to http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=2034376691151104333&userEmail=george.worsley@worldwiderisksolutions.com#top

Also in the Philippines, the Insurance Commission has issued concrete guidelines to implement the Alternative Dispute Resolution for Microsinsurance framework (ADReM). Insurance Insight has a very good article at http://www.insuranceinsight.com/insurance-insight/news/2288403/philippines-embraces-microinsurance-guidelines?wt.mc_ev=click&WT.tsrc=Email&utm_term=&utm_content=Philippines%20embraces%20microinsurance%20guidelines&utm_campaign=Asia%20newsletter%2014%20August%202013&utm_source=Insurance%20Insight%20Daily%20Newsletter&utm_medium=Email

A similarly interesting article has also been penned by Insurance Insight and discusses improvements in Nepal’s microinsurance programme and can be assessed at http://www.insuranceinsight.com/insurance-insight/news/2288402/nepal-in-microinsurance-move

If you had to guess where 3 limited companies, 2 PCCs, 37 PCC cells and 4 ICC celss and more recently gained their licence – and you chose Guernsey – you would be right. This is quite a feat as readers will find out at http://www.guernseyfinance.com/press-room/news/2013/08/guernsey-licenses-46-international-insurers-in-the-first-half-of-2013/ There is also an impressive set of figures which why the island was choses as the European Captive Domicile of the year 2013 by the Captive Review trade magazine.

The Royal Oman Police (ROP) and insurance companies have finished activating an electronic link to create a joint database on the traffic history of vehicle owners. The move is expected to help reduce the rate of road accidents and traffic violations as well as help insurers determine fair levels of premiums. The Times of Oman discusses the issue at http://www.timesofoman.com/News/Article-20467.aspx

Recently, the International Underwriting Association, which represents insurers and reinsurers in the London company market, established a political risk committee. This group will consider both technical underwriting and claims aspects of doing business across different jurisdictions and industries. There are differences between the IUA, Lloyd’s and other associations operating in the English market. For an overview of the IUA and how it differs from the others, please see http://www.iua.co.uk/IUA_Test/About/IUA_Test/About_the_IUA/About_the_IUA_homepage.aspx?hkey=fde5f182-0b0b-4853-a8a1-eb918f24fbf2

In August, Steadfast, the large Australasian broker network group, was listed on the Australian Stock Exchange. Steadfast comprises 280 independently owned brokerage houses in Australia and New Zealand and generated sales in excess of A$4.1 billion last year. To prepare for the listing they expanded their operations, through acquisitions into other insurance broking related businesses, in order to present a more compelling offering for their clients. The growth of the organisation makes interesting reading at https://www.steadfast.com.au/steadfast/our-history.aspx and the most recent development is, besides Network Brokerages, Premium Funding and Ancillary Businesses, Steadfast now has now launched Steadfast Underwriting Agencies as iNavigator reports at http://www.inavigator.com.au/members/blogArticle.asp?id=897

Many of our readers will have heard about the CCRIF (the Caribbean Catastrophe Risk Insurance Facility), a risk pooling facility, owned, operated and registered in the Caribbean for Caribbean governments. How many of us knew that through its design to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short term liquidity when a policy is triggered, it is in fact the world’s first and, to date, only regional fund utilising parametric insurance? The sixteen member governments of the CCRIF have just renewed their hurricane and earthquake insurance for the 2013/14 policy year. To read this good news and more, check out http://www.ccrif.org/content/news

Chinese experts have proposed a new pension scheme, raising the pension age to ease the financial burden of an aging population. Currently, it is 60 for men and 50 for women. To read the proposal, please see the article by Xinhua News at http://news.xinhuanet.com/english/china/2013-08/21/c_132650425.htm and click at the bottom for related news

According to Swiss Re, catastrophes cost global insurers more than US$20 billion during the first six months of the year. Advisen has a good discussion of this announcement at http://propfpn.advisen.com/fpnHomepagep.shtml?resource_id=2044426872222&userEmail=george.worsley@worldwiderisksolutions.com#top Intelligent Insurer has even more detail about the role of flooding in the statistics at http://www.intelligentinsurer.com/news/flood-losses-dominate-first-half-cat-events?utm_source=Insurance&utm_campaign=2647b8b51a-Intelligent_Insurer_Weekly_21_08_2013&utm_medium=email&utm_term=0_f246694353-2647b8b51a-27166897

Jordan’s government recently endorsed regulations requiring public and private commercial institutions with assets valued at more than 500,000 Jordanian dinars (US$705,950) to secure insurance coverage for fires and earthquake. Business Insurance has a bit more news, plus some links at http://www.businessinsurance.com/article/20130827/NEWS09/130829862

Following the accession of Croatia to the European Union, Lloyd’s has received authorisation to write insurance business on a Freedom of Services basis. Lloyd’s Market Bulletin has all the detail at http://www.lloyds.com/~/media/Files/The%20Market/Communications/Market%20Bulletins/2013/08/Y4715.pdf

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

· “Never cut what you can untie” – Joseph Joubert

· “In the country of the blind, the one-eyed man is king” – Erasmus