April 2015

Talk Around the Bazaar

Have you read the comments on Steadfast’s recent launch of an emerging risks underwriting agency, the 20% increase in pre-tax profits of Kenya Re, how major reinsurers are lining up to move into the Indian market? If not, readers should access the newsworthy Weekly Updates from MyInsuranceCloud. Readers can sign up for free at http://myinsurancecloud.com/register/

Pool Re has bought commercial reinsurance for the first time since it was established more than 20 years ago. In a sign of the times, this diminishes the exposure of the UK government. For details of the deal and further comment, please go to Business Insurance at http://www.businessinsurance.com/article/20150302/NEWS06/150309984?tags=|329|81|83|302|88#utm_medium=email&utm_source=bi-dailyalert&utm_campaign=bi-dailyalert-20150302

At long last, India has approved the increase in the cap on foreign investment in Indian insurance companies from 26 to 49%. When one sees the way this news has been welcomed inside and outside India, one has to wonder why local politicians wasted decades playing ego-games rather than allowing the country to find a way to get billions of dollars investment from abroad. Insurance Europe comments nicely at http://www.insuranceeurope.eu/newsroom/758/51/Comments-on-passing-of-Insurance-Laws-Amendment-Bill-in-India

Guernsey in the Channel Islands has put another feather in its cap with the recent accreditation by Lloyd’s of Heritage Insurance Solutions, a leading independent broker. This adds to the island’s proud status as one of the foremost financial centres with truly first class insurance, reinsurance and banking facilities. Read the announcement of Heritage’s Lloyd’s broker status at http://heritageinsurance.gg/page/news/news/heritage-insurance-gains-coveted-lloyds-registered and for more on Guernsey Finance, go to http://www.guernseyfinance.com/

In its highly informative March newsletter, Ferma discusses a number of issues currently under review by its risk management colleagues (see http://www.ferma.eu/app/uploads/2015/03/ferma-newsletter-64.pdf?utm_source=2015+FERMA+Newsletter+64&utm_campaign=N+64&utm_medium=email) and there is one very interesting item relating to “cyber essentials.” On the 23rd March, the British government, ably assisted by Marsh, released a report “UK Cyber Security: the Role of Insurance in Managing and Mitigating the Risk.” This impressive document can be accessed at http://uk.marsh.com/Portals/18/Documents/UK%20Cyber%20Security%20The%20Role%20of%20Insurance%20in%20Managing%20and%20Mitigating%20the%20Risk-03-2015.pdf

Lloyd’s has announced it made a pre-tax profit of £3.2 billion in 2014 – an excellent result. For full details, please go to http://www.lloyds.com/lloyds/press-centre/press-releases/2015/03/annual-results-2014-gbp and you can find out more about the mentality which is the foundation of this success by reading the speech by the Lloyd’s ceo, Inga Beale, earlier in the year entitled “Turning a Threat into an Opportunity” at http://www.lloyds.com/lloyds/press-centre/speeches/2015/01/turning-a-threat-into-an-opportunity

Shipping losses continued their long-term downward trend with 75 large ships reported lost worldwide in 2014, making it the safest year in shipping for ten years. This is according to a report by Allianz. The insurer went on to point to risks posed by so-called mega-ships and cyber attacks on ports and ships which increasingly rely on IT navigation systems. The report by AGCS is very well-written and worth the read at http://www.agcs.allianz.com/about-us/news/shipping-review-2015/

It is a tough ask to get better facts and figures on worldwide insurance situations than those provided by Swiss Re in its SIGMA reports. The latest in a long list of revelations tells us that US$101 billion of 2014′s total economic losses and US$28 billion of insured losses were due to natural catastrophes. There were 189 natural and 147 man-made disasters in 2014. Total economic losses from man-made catastrophes amounted to US$9 billion and insured losses from man-made disasters were US$7 billion. One has to ask oneself if insurance is doing enough in the broad picture of the world economy and the answer will be something like “we are doing as much as we can right now and we are trying to do better.” Readers can make up their own minds by reading the excellent report at http://media.swissre.com/documents/sigma2_2015_en_final.pdf

Protección Técnica Internacional in Tijuana and their partner MacAfee & Edwards in California publish a quarterly newsletter with valuable insights into the Mexican Insurance market. This can be accessed at http://www.macafeeandedwards.com/website/upload/Enews_2015_01.pdf

“There has been a huge change in the reality and perhaps more importantly, perception of risk faced by business in recent times.” This is how Commercial Risk Europe opens its well-thought-out and well-documented Global Risk Frontiers Survey 2014. With headings like Risk Landscape, Board Understanding, Standards & Education, Global Programmes and more, readers can look at many issues from differing points of view and we can recommend you do that at http://www.commercialriskeurope.com/uploads/files/special-reports/GRF-SR-2014.pdf

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Some Animal Cries

  • Bitterns……boom, cry
  • Bulls………bellow
  • Cats……….miaow, purr, hiss, caterwaul