August 2014

Talk Around the Bazaar

Risk Management Solutions (http://www.rms.com/) has partnered with the United Nations and the World Bank to offer catastrophe modelling tool to governments for free. According to RMS, the objective is to strengthen the understanding of catastrophe risk and empower governments to make more informed decisions about risk finance and mitigation. We applaud this initiative and recommend readers go to the following press release for more information, http://www.rms.com/about/newsroom/press-releases/press-detail/2014-07-01/rms-partners-with-the-united-nations-and-the-world-bank-to-advance-global-catastrophe-resilience

Two Chinese insurance industry bodies have set up the Beijing Insurance Research Institute to support the reform of China’s insurance sector. Compared many other large countries, China’s insurance sector is sluggish and needs a more dynamic approach. News Xinhuanet tells us what the plans are at http://news.xinhuanet.com/english/china/2014-07/05/c_133462356.htm

In Saudi Arabia, the General Organisation for Social Insurance (GOSI) will begin implementing “Saned,” an unemployment insurance scheme on the 31st August. This is a good example for many other countries and more about this can be found from Arab News at http://www.arabnews.com/news/601026

A few weeks ago the National Constituent Assembly of Tunisia adopted amendments to the insurance law which establishes a legislative framework to govern takaful. This development was ahead of predictions and shows how quickly markets can move when everyone is on board. There is a lot of news and information on the subject of takaful out there and few can provide a better overview than Ernst & Young in their report from late 2013 in the authoritative Global Takaful Insights at http://www.ey.com/Publication/vwLUAssets/ET_Global_Takaful_Insights_2013/$FILE/EY-global-takaful-insights-2013.pdf

The US Senate has voted to re-authorise the Terrorism Risk Insurance Act (TRIA), the federal terrorism risk insurance programme. This time, the proposal is to extend the programme for seven years. Intelligent Insurer tells you more at http://www.intelligentinsurer.com/news/us-senate-passes-tria-reauthorisation-bill-3059

Many of our readers will have been involved with different aspects of cyber insurance and in the main, it is carriers who tell us the ins and outs of the various forms of cover. A more independent publication is Computer Weekly and recently they produced a well informed article which one can access at http://www.computerweekly.com/news/2240202703/An-introduction-to-cyber-liability-insurance-cover

The English MGAA (Managing General Agents’ Association) now represents approximately 66% of gross written premiums in the MGA market – not bad for a grouping which is only three years old. For further detail, please go to their press release at http://www.mgaa.co.uk/news/news-releases/2014/july/house-of-commons-meet-the-board/

The Indian cabinet has cleared the deck for raising the level of foreign direct investment  in the insurance sector from 26% to 49%. This has been talked about since 2008 and so don’t hold your breath. The article in World Insurance Network, http://www.worldinsurance-network.com/news/indian-cabinet-clears-deck-for-49-fdi-in-insurance-sector-240714-4326243 should be consulted before any lung-bursting decisions are made…

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

  • “Tomorrow is often the busiest day of the year” – Spanish proverb
  • “Real life is to most men, a long second best, a perpetual compromise between the ideal and the possible” – Bertrand Russell