January 2014

Talk Around the Bazaar

In April, the ‘G5’ group of countries – the UK, France, Germany, Italy and Spain – announced plans for multilateral automatic exchange of information and since then, the OECD has been developing a Common Reporting Standard (CRS). Guernsey was among a group of jurisdictions which committed to the early adoption of the CRS, a move singled out by the OECD for praise after it signed its 50th Tax Information Exchange Agreement (TIEA). For more on this, please go to http://www.oecd.org/tax/transparency/Joint%20Statement.pdf

Guernsey also figures in the news along with Jersey as the two islands announce the establishment of a joint office in Caen. International Advisor looks at this at http://www.international-adviser.com/news/europe/jersey-and-guernsey-to-open-joint-office

In December, Hong Kong licensed its second Chinese captive: Sinopec Insurance Ltd. For more about this as well as finding out who and when the first captive came into being on the island, please click on http://www.captivereview.com/news/1737257/hong-kong-licences-second-chinese-captive.thtml

The Reserve Bank of India has proposed allowing banks to engage in insurance brokering business in a move meant to increase insurance penetration. While many countries struggle to delineate broking from underwriting/bancassurance, India will need to make it clear how these two disciplines are kept apart. Further detail can be found at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=209820945-15816767&userEmail=george.worsley@worldwiderisksolutions.com#top

Not to be outdone in the field of insurance broking, the UAE has issued an ordinance regulating this important role. Advisen reviews this development at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=210354790-219083939&userEmail=george.worsley@worldwiderisksolutions.com#top

Following the quietest hurricane season in decades, more professionals are predicting reductions in catastrophe reinsurance pricing. Intelligent Insurer is the latest to quote Fitch at http://www.intelligentinsurer.com/news/lack-of-hurricanes-in-2013-will-lower-reinsurance-prices?utm_source=Insurance&utm_campaign=cde02df810-Intelligent_Insurer_Weekly_04_12_2013&utm_medium=email&utm_term=0_f246694353-cde02df810-27166897

Every quarter, FM Global publishes an outstanding series of articles on events in their specialist world. These can relate to claims, underwriting reviews and more. The latest one is a nightmare as readers can find out at http://www.fmglobalreason.com/sites/default/files/P07001_1213.pdf

Our friends at iNavigator have just shared with us the General Insurance Institution-level Statistics of the Australian Prudential Regulation Authority at http://www.inavigator.com.au/ftproot/common/insurance%20market/market%20forum/apra%20publications/general%20insurance%20performance%20statistics/APRA%20General%20Insurance%20Institution%20Level%20Statistics%20-%20June%202013%20isued%2011%20December%202013.pdf There is a lot of information here which will appeal to some of our readers….

According to the country’s financial regulator, insurers in Indonesia will have to wait at least another year before insurance and Sharia legislation will call for a split in their activities. Advisen has the story at http://eurfpn.advisen.com/fpnHomepagep.shtml?resource_id=210308005-1484552648&userEmail=george.worsley@worldwiderisksolutions.com#top

During the past five years there have been various changes to the legislation affecting insurers in Colombia. On the 6th December, the Ministry of Finance and Public Credit issued a decree which affects branch offices of foreign insurers in the country. Kennedys discusses this at http://www.kennedys-law.com/article/newrulesforeigninsurers/

Elsewhere, legislation has been amended to allow PCCs to register as PCCs. To read why this is such a big deal in the Caymans, go to the excellent article from Captive Review at http://www.captivereview.com/news/1737737/the-new-icc-on-the-block.thtml

Alongside state-owned insurers, the Indonesian government will roll out an ambitious healthcare scheme for over 100 million people starting in January. Before the USA takes note on how to do this, one must remember that there are more than 238 million people in the country and so the new scheme cannot claim universal application. Nevertheless, it is an enterprising initiative as Post describes at http://www.postonline.co.uk/post/news/2319719/indonesia-to-roll-out-worlds-largest-healthcare-scheme

As many of our readers will have seen, piracy in west Africa is an increasing concern, severely impacting the lives, property and revenues of many people in the region. Daily News from Egypt even mentions a Hollywood actor in its well-balanced story of this scourge at http://www.dailynewsegypt.com/2013/12/15/piracy-in-west-africa-a-bumpy-road-to-maritime-security/

Morocco is likely to have an insurance regulator by the first quarter of 2014. Business Insurance reports on this good news at http://www.businessinsurance.com/article/20131218/NEWS09/131219841

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

· “The harder you work, the luckier you get” – Gary Player

· “Don’t think there are no crocodiles just because the water is calm” – Malayan proverb