June 2014

Talk Around the Bazaar

In India, the public sector general insurers and the GIC Re are discussing the creation of a nuclear insurance pool. The need for insurance arises after India and Russia recently signed an agreement to expand an existing power plant and people have realised that current insurance arrangements are inadequate. The Hindu Business Line tells us more about what is at stake at http://www.thehindubusinessline.com/economy/public-sector-general-insurers-gic-re-discuss-nuclear-insurance-pool/article5960360.ece

The Kyrgyz government has enlisted an international law firm to help it develop regulations for Islamic bonds (sukuk) and insurance (takaful) in the mainly Muslim central Asian country of 5.5 million people. Business Insurance provides access to this news at http://www.businessinsurance.com/article/20140502/NEWS09/140509977

The Guernsey Financial Services Commission (GFSC) licensed 99 new international insurers in the 12 months to the end of March. This includes eight limited companies, five Protected Cell Companies (PCCs), 73 PCC cells, three Incorporated Cell Companies (ICCs) and ten ICC cells. You can get further detail from GFSC at http://www.guernseyfinance.com/press-room/news/2014/05/guernsey-licenses-99-international-insurers-in-12-months/

Another island with a similar industrious approach to captives is Malta, Its captive market does not, on the surface, appear to be a large sector. But as a member of the EU, and with certainty over Solvency II implementation, together with a now growing global economy, the future is looking positive. Risk Management Scoop it! has access to the excellent article by Commercial Risk Europe as well as other useful notes on Captive and Risk Management action at http://www.scoop.it/t/riskmanagement

With effect from the 1st January 2015, the TEAAPAE levy on all classes of insurance policies in Greece will be abolished Impendulo explains this at http://www.impendulo.com/impendulo_news.php#/blog_posts/tax-rate-alert-greek-pension-fund-teaapae-abolished-from-1st-jan-2015-26198

The Zimbabwean government will crack down on overseas investors who insure their projects outside Zimbabwe, Finance Minister Patrick Chinamasa has said. He said insuring externally was depriving the local insurance business and the economy at large of potential business. More about this protectionist approach can be found in the article by the Zimbabwe Independent at http://www.theindependent.co.zw/2014/05/09/insurance-govt-clamps-foreign-investors/

“Lawmakers in Hong Kong have urged the government to go further in insurance reform by bolstering the independence and regulatory power of the proposed Insurance Authority to be set up next year.” This is the opening sentence in an article in the South China Morning Post commenting on the passage of the Insurance Companies (Amendment) Bill 2014 into Legco which brought an independent regulator a step closer in Hong Kong. For the full article, please go to

http://www.scmp.com/business/companies/article/1520195/lawmakers-call-wider-insurance-reforms

The African Risk Capacity (ARC) agency has launched the first ever African catastrophe insurance pool. The deal is underpinned by $55 million of index-based reinsurance capacity from the international weather risk markets. The agency has created a specialist hybrid mutual insurance company to administer the scheme. ARC Insurance Company (ARC) is domiciled in Bermuda. The scheme is designed to reduce dependency on external emergency aid and the pool provides $135 million in drought insurance coverage to the governments of Kenya, Mauritania, Mozambique, Niger and Senegal. The article by Artemis on this development is well worth reading at http://www.artemis.bm/blog/2014/05/14/first-african-parametric-catastrophe-insurance-pool-launches/

Indonesia’s Financial Services Authority has said that four insurers will enter the Sharia finance sector. Seeing as insurance and Sharia finance have a low penetration in this populous country, such a development is to be applauded. The Jakarta Post will tell you more at http://www.thejakartapost.com/news/2014/05/19/insurance-news-brief-insurance-firms-enter-sharia-finance.html

Clyde & Co has announced that it will be opening offices in Johannesburg and Cape Town. To study the full press release, readers should go to http://www.clydeco.com/news/articles/clyde-co-to-open-in-south-africa

Windstorm is the most damaging peril in Europe, yet details of its frequency and severity are largely unknown. Following a year of windstorms in Europe which resulted in substantial losses, Intelligent Insurer asks whether the industry was prepared for 2013’s storms and if the frequency of these events is likely to grow. Well-documented and thoughtful answers can be found on their website at http://www.intelligentinsurer.com/article/eye-of-the-storm?utm_source=Insurance&utm_campaign=75fb6f8e2e-Intelligent_Insurer_Weekly_20_05_2014&utm_medium=email&utm_term=0_f246694353-75fb6f8e2e-27166897

One of the most recently formed networks of independent brokers has grown so quickly, it has decided to split the EMEA region in two. Brokerslink now has four regional directors. Insurance Journal comments on this at http://www.insurancejournal.com/news/international/2014/05/22/329794.htm

The European Captive Forum will be held on the 11th and 12th November in Luxembourg. For more details of the conference, please check http://www.captivereview.com/events/homepage/conference/

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

· “A liar should have a good memory” – Quintilian

· “Liberty is the right to do what the law permits” – Montesquieu