Global Briefs

Global Briefs – October 2019


Hong Kong – Proposed Insurance Connect with mainland China currently on hold

The proposed Insurance Connect scheme to allow cross-border sales of insurance products between Hong Kong and mainland China is on hold because of economic uncertainties arising from the Sino-US trade war and the political unrest that has rocked Hong Kong the last three months. Read more about ‘Insurance Connect’ HERE

India – Foreign investors can own 100% of insurance intermediaries

The Indian government has issued a notification putting into effect its decision to allow 100 percent foreign direct investment in insurance intermediaries. The FDI ceiling was previously 49 percent.

Peru – word from our man in Peru: “Indeed, AON operations in Peru are confronting more challenges than ever before (in addition to the three challenges of the article). AON (Peru) have two additional challenges: 1. Develop a regional “hub” to manage the operations of the Andean region (Bolivia, Ecuador and Peru) based on a technical knowledge of risks. 2. Increase net income and EBITDA (last 6 years have been very difficult for them). In the case of Lockton, the challenge is to have its own office in the Andean Region, but first they need local knowledge (technical, political and cultural). In other words, solve the first key challenge = “Build / Buy” Dilemma.

Turkey – Turkish Insurance Market Hampered by Underwriting Losses and Economic Volatility

A. M. Best report exploring Turkey’s non-life insurance market. Topics covered in the report include:

  • Insurers have lost substantial control over pricing on motor third-party liability business due to regulatory/legal changes.
  • The weak lira continues to make motor vehicle repair parts and reinsurance—always denominated in hard currency—expensive.
  • Political and economic risks are significant and growing. Should U.S. sanctions against Turkey come to fruition, there could be significant economic/operational consequences for (re)insurers.

AM Best considers the practice by Turkish insurers to offset technical losses with investment income not sustainable in the longer term. 

Ukraine – 1H2019: total GWP in local currency increased by 16.5% y-o-y with over 98% of GWP collected by TOP-100 out of 249 companies

Market GWP in 1H2019 increased by 16.5 percent y-o-y and amounted to UAH 27.3 billion (~EUR 918 million), according to the statistical data, published by the regulator. At that the shares of life and non-life in the market portfolio remained almost unchanged. GWP from individuals amounted to 37.2 percent of the total market, and GWP from legal entities reached 62.8 percent. Among voluntary classes the highest growth rates were demonstrated by medical insurance (+43.21%), Motor Hull (+23.8%) and insurance against fire and other perils (+29.08%). Among compulsory classes - MTPL increased by almost 12 percent, to UAH 2.46 billion (~EUR 82.9 million), GWP of Green Card policies went up by 36 percent y-o-y. Market paid claims increased by only 9.84 percent. A significant decline of paid claims was observed in life insurance (-27.12%), while non-life paid claims jumped by 12.38 percent. The total number of market participants continues to reduce. In 1H2019 the number of companies decreased by 42 in comparison to 1H2018. Anyway, at the end of 1H2019 the total number of insurers remained quite big (249 - of which 223 are non-life and 26 - life insurers). At the same time, the major part of the portfolio (98.2%) is accumulated by TOP-100 non-life companies. The non-life leader in terms of GWP is ARX (former AXA before rebranding) (UAH 1.12 billion/EUR 37.78 million), followed by UNIQA (UAH 1.11 billion/EUR 38.34 million), and ARSENAL Insurance (UAH 1 billion/EUR 34.61 million). (XPRIMM, a PIA partner publication)

Share this Post:


ad ad

Related articles

Patrick Rastiello joins Ardonagh Specialty to lead North America Reinsurance expansion

Ardonagh Specialty has appointed Patrick Rastiello as CEO* of its North American reinsurance operations.   Patrick will be responsible for building Ardonagh Specialty’s US reinsurance...

Global Markets Overview: February 2024

In this Global Markets Overview, we explore our global outlook and share what we think it means for 2024. As...


Risk Management Trailblazer Presented with RIMS Highest Honor for Lifetime Achievement in Risk Management  NEW YORK (February 13, 2024) – At the RIMS New Zealand and Pacific Island...

Insurer’s Lease More Than Doubles Its Chicago Office Space

Sompo International Plans Move to 46-Story Tower at 155 N. Wacker A global specialty insurance provider is more than doubling the size of its Chicago office in a move a few blocks north, bucking the trend...

Haynes and Boone, LLP is pleased to announce that Peter A. Halprin has joined the firm as a Partner

Haynes and Boone, LLP is pleased to welcome Insurance Recovery Partner Peter A. Halprin to the firm’s New York City office. A Chambers USA-ranked attorney, Peter joins from Pasich LLP, where...

LIO Specialty Launches Revolutionary Online Portal for Life Science Insurance Solutions

Leading the Excess and Surplus Lines Market with Innovative Coverage for Cannabis and Nutraceutical Industries  West Conshohocken, PA– LIO Specialty Insurance Company proudly announces the launch...