December 2014

Talk Around the Bazaar

Indonesia’s Islamic insurance market will be reshaped over the next decade by a new law which requires conventional firms to spin off their Sharia-compliant units, while encouraging more foreign investors to enter the market. Business Insurance has comments, facts and figures and these are available at http://www.businessinsurance.com/article/20141103/NEWS04/141109991?tags=58|338|158|159|76|73|69

On a related topic, Palestine is where the growth of Takaful is getting a lot of attention. Insurance Research Center has all the news at http://www.irc.ac.ir/en/news/news.php?newsid=1517

During the last couple of years, regulatory initiatives in the financial services industry have been introduced in order to ensure stability in financial markets. For many people, some of these planned measures appear to paint the banking industry and insurance with the same brush. To its credit, Insurance Europe has examined the key differences between these two services industries and has recently published its findings. These can be accessed at http://www.insuranceeurope.eu/uploads/Modules/Publications/why_insurers_differ_from_banks.pdf

The Egyptian Financial Supervisory Authority (EFSA) has said that new rules governing reinsurance will take effect from the 1st January 2015. Among the new requirements, reinsurance companies have to be registered with the regulator. Not a bad idea. Asia Insurance Review discusses this at http://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/31450/Type/MiddleEast

For those who have read the book and/or seen the film, The Life of Pi, there is a surprise awaiting them. Don’t hold your breath but go straight to Litmus Analysis website to find out at http://www.litmusanalysis.com/news/the-end-of-the-life-of-pi-the-demise-of-unsolicited-ratings/

Readers will be aware that Aon Benfield recently developed a Realistic Disaster Scenario (RDS) for Vietnam and China. Of wider interest, however, is their Impact Forecasting Model Coverage for the whole world. This well-researched document can be found at http://www.aon.com/attachments/reinsurance/models_if_brochure.pdf and we recommend our readers take a few minutes to study this

Things are really happening apace in Myanmar. The latest development is the news that foreign insurance companies may begin their operations in the Thilawa special economic zone from January next – not long to wait! Mizzma Business Weekly has the detail with http://www.mizzima.com/business/investment/item/14871-foreign-insurance-companies-can-start-in-thilawa-from-2015

As predicted, The Standard Club P&I premiums are due to rise. Intelligent Insurer has the details at http://www.intelligentinsurer.com/news/the-standard-club-p-i-premiums-rise-4244?utm_source=Insurance&utm_campaign=66f7f0191b-Intelligent_Insurer_Daily_20_11_2014&utm_medium=email&utm_term=0_f246694353-66f7f0191b-27166897

Our good friends, JMD Ross in Sydney brought the following article to our attention: “How should directors and officers protect their company from information security breaches?” This article is penned by experts at CBP lawyers and can be found at http://www.cbp.com.au/Publications/How-should-directors-and-officers-protect-their-co

With the recent acquisition of Brokerweb Management in New Zealand, Austbrokers is now the largest broker in the country. To find out whether people regard this as good news, we suggest you look at the article in Insurance Business at http://www.insurancebusinessonline.com.au/news/aussie-broker-network-becomes-formidable-force-in-new-zealand-194330.aspx and make up your own mind.

Regulation of the insurance sector in the UK is set to change in order to implement the Solvency II directive. The Bank of England is currently looking at proposed changes to rules resulting from Solvency II and how these will affect the insurance industry. The Prudential Regulation Authority recently wrote about this and you can read its letter at http://www.bankofengland.co.uk/pra/Documents/solvency2/insurancedirectorsupdatenovember2014.pdf

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

  • “Conscience reigns but it does not govern” – Paul Valéry
  • “Consistency is the last refuge of the unimaginative” – Oscar Wilde