September 2014

Talk Around the Bazaar

Following our Spotlight articles on Cyber Risk, it is interesting to note that only 1% of captive owners underwrite this class of business. Captive Review discusses a recent benchmarking exercise at http://www.captivereview.com/news/1743642/only-1-of-captive-owners-underwrite-cyber-risk-aon.thtml

To see what The Economist thinks about the level of corporate preparedness, please see http://www.economistinsights.com/sites/default/files/EIU_Cyber_incident_response_Are_business_leaders_ready.pdf

The European insurance industry has maintained a path of stability and growth, even during times of crisis, according to figures released by Insurance Europe. The figures, which included data collected from 32 national insurance associations across Europe, looked at various aspects of the European insurance industry between 2003 and 2012. Facts and figures can be found in the press release at http://www.insuranceeurope.eu/newsroom/706/51/European-insurance-figures-show-growth-and-stability

China’s state council aims to double insurance penetration in the next 15 years. An ambitious wide range of priorities will focus on healthcare, pensions, agriculture, natural catastrophes and more. For the full article in Intelligent Insurer, click on http://www.intelligentinsurer.com/news/china-aims-to-double-insurance-penetration-3298?utm_source=Insurance&utm_campaign=28e76fabe1-Intelligent_Insurer_Daily_15_08_2014&utm_medium=email&utm_term=0_f246694353-28e76fabe1-27166897

The way Myanmar plans to develop its insurance market and build capacity is to call in the World Bank. The insurance industry is reportedly growing at a fast rate and it needs to be channelled and supervised properly. Eleven Myanmar explains how this will take place at http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=7243:world-bank-to-help-develop-insurance-market&catid=33:business&Itemid=356

Indonesia’s climate for investments in the oil and gas sector weakened significantly due to restrictions on foreign direct investments; opportunities in Vietnam remain hampered by the South China Sea dispute; investors in Egypt are at risk of confusing gradual political risk improvements for newfound, long-term stability, all according to a new ranking from the Emerging Markets group of Alliant Insurance Services. The report, entitled Frontier Energy Risk Index, provides oil and gas companies and investors with a yearly snapshot of political risk levels in 14 emerging economies and makes interesting reading for all in the insurance and risk management world. It can be accessed at http://www.alliant.com/Risk-Solutions/Documents/Alliant%20Frontier%20Energy%20Risk%20Index.pdf

Catastrophe modelling firm RMS has updated its probabilistic terrorism model to incorporate new views of terrorism risk for Canada, Denmark, Ireland, Italy and the UK. The enhanced terrorism model incorporates updates to event frequency to reflect the following trends in terrorism: decline in the frequency of macro-terrorism attacks, decline in the overall threat of large-scale terrorist attacks due to weakened Al-Qaida operational capabilities and successful counter-terrorism measures, and continued violence and instability in Pakistan, Iraq and Syria, which provide a safe harbour for terrorist operations and recruitment. For further detail, the press release from RMS can be viewed at http://www.rms.com/about/newsroom/press-releases/press-detail/2014-08-20/rms-releases-new-views-of-risk-for-terrorism

Nepal’s government has given approval to the Insurance Pool, which was established in 2003, to prepare to conduct reinsurance operations. The pool is now awaiting registration as a reinsurer. The pool’s CEO, Ramesh Lamsal, said the Insurance Board will prepare a directive to create the company. The report from E Kantipur can be found at http://www.ekantipur.com/2014/08/25/business/insurance-pool-to-be-converted-into-reinsurance-company/394073.html

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

  • “Travel is fatal to prejudice, bigotry and narrow-mindedness” – Mark Twain
  • “If you don’t want anyone to know it, don’t do it” – Chinese proverb

And for the quotation in our e-mail you have to look for someone who also said: “Float like a butterfly, sting like a bee.”