Feb
18
India to Introduce Portability for Health Insurance Policies
Filed Under Allianz, BUPA, Health Insurance, Healthcare, Medical Insurance, Uncategorized | 9 Comments
From July 1st 2011, health insurance policy holders in India will be able to change insurance providers, without the fear of losing their benefits from their previous policy.
With the new initiative issued by the IRDA (Insurance Regulatory and Development Authority), industry leaders in India predict an increase in competition among health insurance providers, as policy-holders will be afforded greater freedom in moving their policies among insurers. Health insurance service standards are also expected to rise in return, as insurance companies will increasingly compete on the quality of customer service.
The IRDA issued a media release on 10th February 2011, indicating that insurers should allow for portability of health insurance policies. The central thrust of the IRDA plans for health insurance portability is the ability to transfer credit for pre-existing conditions in regards to waiting periods on cover, provided that there has been no lapse in the policy. The IRDA also seeks to allow portability if the policy lapses due to delay by an insurer.
Prior to the regulatory change, policy holders were often at a disadvantage. If a policy-holder wanted to change to a different health insurer, particularly if they have acquired a chronic illness, they may face obstacles such as long waiting periods or exclusion of cover for pre-existing conditions when taking out the new policy.
Policy-holders should be happy with the recent changes in IRDA laws, which will allow them to carry their policy to another insurer, keeping the benefits of their previous policy. “It is essential to protect policyholders against discontinuity and consequential loss of pre-existing disease cover… The portability will ensure the policyholder is not tied to one insurer for the pre-existing disease cover” said the IRDA in the February 10th media release.
CEO of Apollo Munich Health Insurance, Antony Jacob, explains changes regarding the new law “a customer opting to choose our product (at similar sum insured level) can transfer indemnity based health policy from any insurer with the accumulated benefits”.
The IRDA aims to protect the interests of policy-holders and this is one of their most recent regulations on health insurance companies in India. The IRDA, appointed by the Government of India, are ultimately setting its targets to not only protect the rights of consumers, but to protect the state in the burden of medical treatment placed on the public health system.
Looking ahead, as suggested by leading insurers, what we can expect to see is an increase in competition among insurers. Policy holders in India will find shopping for another insurance provider an easier process.
Increased competition on the market may initiate a drop in health insurance premiums; as insurers provider try to draw in customers. However, Dr BS Powdal, Head of Health Insurance, Bajaj Allianz, explains that this is unlikely to occur. With customers moving to different companies there is usually a particular reason for it, such as poor service, given the benefits under their policy will remain the same. ‘Quality of services’ will therefore be the likely motivator in the near future for customers within India moving to different health insurers.
Dr BS Powdal of Allianz explains, “he is going to pay some extra amount for the added quality of service so it is unlikely that there will be a price wars because of portability but the customer benefits because he gets the benefit of the waiting period which he has already stayed with the previous insurance company”, further adding that premiums are in fact likely to rise “if there is a person who has say suffered a heart attack with the previous insurer’s policy period when he moves to the next insurer that insurer probably will charge a higher premium… prices may go up to some extent for those who have a claim history with the previous insurance company”.
In the meantime, competition is on the increase in India with more and more individuals taking out health insurance policies in the country. The number of policy holders increased to 6.88 million from 4.57 million in the 2008-9 year, according to data issued by Third Party Administrators (TPA) and Insurers in India. With increasing numbers of policy holders, premium collection by health insurers has almost doubled along with the submission of claims.
Key players on the health insurance market in India include Star Health & Allied Insurance, Apollo MUNICH and Max BUPA; with other leaders including National Insurance Company, United India and Oriental Insurance and ICICI Lombard.
Insurance Companies mentioned:
Star Health & Allied Insurance
Star Health and Allied Insurance is a specialist health insurance provider and was the first stand alone health insurer in India. Star Health and Allied Insurance provides health, accident, student, travel, and life insurance products.
Apollo Munich Health Insurance
Apollo Munich Health Insurance Co. Ltd. (previously known as Apollo DKV Insurance Co. Ltd) is a joint venture between the Apollo Hospitals Group and Munich Health. Apollo Munich Health Insurance provides health, personal accident and travel insurance.
Max Bupa Health Insurance is a 74:26 joint venture between Max India Limited and UK-based Bupa. Bupa is a leading private healthcare provider with more than 10 million customers worldwide and over 60 years experience in the health sector. The Max India Group has expertise in both healthcare and insurance related services including hospitals, clinical research and life insurance.
Bajaj Allianz is a joint venture between Bajaj Finserv and Allianz SE, one of the world’s largest insurance companies. Bajaj Finserv is engaged in life insurance, general insurance and consumer finance business. Allianz SE has over 119 years of industry experience and is present in over 70 countries around the world.
Founded in 2001, ICICI Lombard is a 74:26 joint venture between ICICI Bank Limited, India’s second largest bank, and Fairfax Financial Holdings Limited, a Canada based financial services company. ICICI Lombard is a general insurance company offering a wide range of insurance policies including, business, liability, motor, travel, rural and health insurance products.
Founded in 1906, National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, National Insurance has a large market presence in Northern and Eastern India.
Incorporated in 1938, United India Insurance Company Limited is a leading General Insurance Company of India. With headquarters based in Chennai, India, the company has more than three decades of experience in Non-life Insurance business. It was formed by the merger of 22 companies, consequent to the nationalization of General Insurance.
Jan
14
Malaysia makes Health Insurance Mandatory for Foreign Workers
Filed Under AXA PPP, Allianz, Health Insurance, Healthcare, Insurance Company, Medical Insurance, Uncategorized | 3 Comments
On January 1st 2011, the Malaysian Government made health insurance compulsory among the foreign working population, with the aim to eradicate the fraudulent and unpaid hospital bills that were piling up in the country. The Malaysian Government estimates the total figure to amount as high as RM$18 million, or USD$5.8 million.
From the first of January, Health Minister Datuk Seri Liow Tiong Lai, introduced the Foreign Worker Hospitalization & Surgical Insurance Scheme, making it compulsory for employers to provide health insurance coverage to foreign workers. Further to this, employers are enforced to provide workers compensation insurance to foreign workers, under the Foreign Workers Compensation Scheme.
With some employers budging to comply with the new scheme, Health Minister Datuk Seri Liow Tiong Lai reissued warnings to employers on 7th January, mandating that payment of premiums are made by March, or else foreign worker’s permits will not be renewed. Outstanding medical bills must be cleared, otherwise worker’s permits will also not be renewed.
The Foreign Worker Hospitalization & Surgical Insurance Scheme was introduced as a result of the ever-increasing fraudulent and unpaid hospital bills in Malaysia, said to be made predominantly by foreign workers receiving medical care in the country. Allegations have also been made against foreign patients profiteering from prescription medications, purchased from hospitals and artificially inflated to overseas customers.
The Foreign Worker Hospitalization & Surgical Insurance Scheme applies to all foreign workers in Malaysia. The scheme is limited to cashless claim services, within Government hospitals in the country. A set premium of RM150, or USD$49.07 has been applied for the insurance scheme, which covers up to RM10,000, or USD$3,270 a year in medical expenses. Those eligible under the scheme must be full time foreign workers, between the age of 18 to 59. Foreign workers covered under the insurance scheme, are entitled to hospital care, only within Non-Corporatised Malaysian Government Hospitals. Foreigners under the scheme do not need to provide any cash or guarantee letter from the insurer, they only need to turn up with their passport. The Malaysia Assurance Alliance Berhad (MAA) were appointed by the Ministry of Human Resources to partake in the design of both the Foreign Worker Hospitalization & Surgical Insurance Scheme (SKHPPA), and the Foreign Workers Compensation Scheme (FWCS).
There are around two million foreign workers registered in Malaysia, predominantly employed in the labour market, working in plantation farming as well as domestic maids. There is however a current shortage of maids working in the country, partly due to allegations of abuse among maids working in Malaysia. The collective figure of working foreigners, is however on the increase in Malaysia and the Government hopes to control this figure. Tuberculosis was once under control in Malaysia, however due to the migration of people from high risk countries the incidence rate is on the rise again. More than 17 thousand Tuberculosis cases are reported annually in Malaysia, with around14 % involving foreign workers.
Workers compensation insurance claims are very low among the foreign worker population in Malaysia. Only 75 % of foreign registered workers are said to be covered by workers compensation schemes by the employer. The Malaysian law mandates that employers must provide workers compensation insurance coverage to all permanent employees.
Employers are arguing that the premiums associated with the new compulsory health insurance mandate is too high, placing an unfair burden on employers. Deputy chairman of the Sabah Parti Keadilan Rakyat, Christina Liew argued “It is like penalizing the employers whenever the government imposes new policy with regard to foreign maids and plantation sectors… surely, the premium should not be so high as RM120 per worker”.
Although the coverage is relatively low, capped at a RM10,000, employers argue that the total amount in premium would exceed the hospital debt. Plantation farmers are debating the scheme and refusing to pay the premium. Shamsuddin, on behalf of the The Malaysian Employers Federation (MEF) are arguing “They have their own arrangement. Plantation workers’ medical fees are covered by the employers based on the law”, further adding “with more than two million foreign workers, the sum will total more than RM240 million annually.” Plantation farms are located outside of urban areas and generally have little access to hospitals. With plantation and farming estates paying costly premiums, food prices may inevitably increase.
There are 32 insurers said to be currently registered on the scheme. End of last year, following announcement of the scheme, insurance companies were competing to partake a share of the new market, however the scheme is said to be open to all insurers.
Those insurers who made their policies available on the 1st January include: Tokio Marine Insurance (Malaysia) Berhad; Malaysian Assurance Alliance Berhad; AXA Affin General Insurance Berhad; MUI Continental Insurance Berhad; The Pacific Insurance Berhad; Barjaya Sompo Insurance Berhad; Jerneh Insurance Berhad, Kurnia Insurance (Malaysia) Berhad; RHB Insurance Berhad; and Progressive Insurance Berhad. Others to be registered by February 15th include QBE Insurance (Malaysia) Berhad; Overseas Assurance Corporation (Malaysia) Berhad, Allianz General Insurance Company Berhad; Oriental Capital Assurance Berhad; and Sayarikat Takaful Malaysia Berhad.
Insurance Companies Mentioned:
Allianz General Insurance Company Berhad
Allianz General Insurance Company Berhad is a subsidiary of the Allianz Group, one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
AXA Affin General Insurance Berhad
AXA Affin General Insurance Berhad is a subsidiary of the AXA Group, a worldwide leader in Financial Services. Headquartered in Paris, the AXA Group companies are engaged in life insurance, health insurance and asset management services among others. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area.
Malaysia Assurance Alliance Berhad
Malaysia Assurance Alliance Berhad (MAA) was incorporate in 1968, MAA is a subsidiary of MAA Holdings Berhad. MAA is one of the leading insurance and financial services companies in South Asia, providing services mainly within Malaysia, as well as in Indonesia and the Philippines.
Berjaya Sompo Insurance Berhad
Berjaya Sompo Insurance Berhad is an insurance provider, offering a range of products including health insurance, personal liability and motor insurance. The company originated in 1974, merging its services with Sompo Japan Insurance Inc, Japan’s second largest insurer, in 2006.
Established in 1971, Jerneh Insurance Berhad is a subsidiary of Jerneh Asia Berhad, (JAB) an investment holding company. Jerneh Insurance Berhad is based in Malaysia, providing insurance products in accident, health insurance, household and other insurance products and services.
Kurnia Insurance (Malaysia) Berhad
Kurnia Insurance (Malaysia) Berhad is one of the leading General Insurance companies in Malaysia. Previously known as Industrial and Commercial Insurance, the company was established in 1978 and purchased by its present owners in 1991. Kurnia Insurance (Malaysia) Berhad specializes in motor, medical, personal accident, home and business insurance products.
Progressive Insurance Berhad is a reinsurance company established in Malaysia. Founded in 1974, the company moved its headquarters from Sarawak to Kuala Lumpa in 1982. Today the company’s financial equity has been expanded following 94% stake jointly purchased by the Sabah State Government and Permodalan Bumiputra Sabah Berhad.
MUI Continental Insurance Berhad
Established in 1976, MUI Continental Insurance Berhad is a general insurance company. MUI Continental Insurance has branches throughout Malaysia, with leading US insurance underwriter CNA Financial Corporation, as one of its shareholders.
QBE Insurance (Malaysia) Berhad
A subsidiary of the QBE Group, QBE Insurance (Malaysia) Berhad is a joint venture company with MBf Insurans, merging in 2002. The QBE Group established services within Malaysia in 1905 and today it is one of the top 25 insurers and reinsurers worldwide. Headquartered in Sydney, Australia, QBE operates out of 49 countries around the globe, with a presence in every key insurance market.
RHB Insurance Berhad is a subsidiary of the RHB Banking Group, the first local bank established in Malaysia in 1913. RHB Insurance Berhad provides a range of general insurance services including health, property, automobile, personal liability, among other insurance products and risk management services.
Jan
6
Japan Post Insurance and Axa SA Top A M Best Lists of Major Insurance Companies
Filed Under AIG, Allianz, Aviva, Insurance Company, Life Insurance | 75 Comments
The Japan Post Insurance Company and AXA SA are identified as the world’s leading insurers in the latest report issued by renowned credit rating agency A.M. Best. The Japanese and French insurers emerged as the biggest insurance companies in a list registering the top 25 worldwide insurers measured by asset values and net premiums written.
The Tokyo-based Japan Post Insurance Company was reported holding assets totaling US$1.1 trillion in 2009, making it the largest insurer by asset value, although it was only ranked fourth in terms of net premiums written at US$81 billion. The French insurer AXA SA took top spot for net premiums written.
The ranking by assets was dominated by life insurance companies, with non-life insurers dominating the net premium written table. The latest A.M. Best report is based on insurers’ financial results for the year ending 2009, reflecting differences in each country’s regulatory and reporting requirements. The rankings take into account currency values for consistency purposes.
The total value of the 25 insurers ranked by assets amounted to US$25 trillion, while the value of the 25 insurers ranked by net premiums written totaled US$1.3 trillion at the end of 2009.
The Japan Post Insurance Company is government-owned although its parent company – the Japan Post Holdings Company – was slated to be privatized, but proposals were subsequently scrapped when a new Japanese government – The Democratic Party of Japan (DPJ) – took office in August 2010. The company specializes in the provision of life insurance products and services sold through post offices and directory managed stores.
Within the list of the 25 largest insurance companies there were 13 European-based insurers ranked by asset values, while North America and Asia were each represented by 6 insurers in this category. In terms of the specific countries in which these companies were based; Japan had 6, the United States 5, the UK 4 and France 3, with the residual 7 companies based in the Netherlands, Germany, Italy, Switzerland and Canada.
In the ranking of companies by net premiums written there were 9 European and 9 North American based insurers, with 7 Asian based insurers – including 5 in Japan – making up the 25 largest insurance companies globally.
A.M Best recognized that rankings could have changed since 2009, with the subsequent completion of mergers and acquisitions between insurers and some restructuring of operations. Most notably, the positioning of AIG – ranked third by asset value with US$847.6 billion and sixth by written premiums totaling US$62.2 billion in 2009 – will change as it seeks to sell-off companies such as AIG Edision Life Insurance and AIG Star Life Insurance in Japan as well as Nan Shan in Taiwan as part of its divestment strategy – having already sold Alico to American insurance rival Metlife. While AXA is set to expand its global reach after bidding for AXA Asia Pacific Holdings Ltd in late 2010 to increase the French insurer’s exposure in the region.
The net premium written rankings includes China Life and the Life Insurance Corporation of China and India in the list representing two of the largest insurers from the two most populated countries in the world; both countries having fast growing economies. Asia, especially China and India, have emerged in recent years as significant growth markets for global insurers with home domiciles in Europe and North America. Insurers such as AXA, Aviva, Prudential, Aegon, Zurich, Allianz and Generali have all highlighted the Asian region for expansion of operations, particularly for life and health insurance products, often forming joint ventures with locally based insurers.
In traditional, more established markets, insurers will be seeking to optimize opportunities for changes in the provision of healthcare services, particularly in the United Kingdom and the USA, and to redress shortfalls which have occurred in the pension industry.
A.M Best: World’s Largest Insurers
Largest Insurers Ranked by Assets (2009)
1. Japan Post Insurance Co. Ltd. (Japan)
2. Axa S.A. (France)
3. American International Group Inc. (United States)
4. Allianz SE (Germany)
5. Assicurazioni Generali SpA (Italy)
6. Aviva plc (United Kingdom)
7. MetLife Inc. (United States)
8. Prudential Financial Inc. (United States)
9. Legal & General Group plc (United Kingdom)
10. Nippon Life Insurance Co. (Japan)
11. National Mut Ins Fed Agricultural Coop (Japan)
12. CNP Assurances (France)
13. Aegon NV (Netherlands)
14. Manulife Financial Corp. (Canada)
15. ING Groep NV (Netherlands)
16. Zurich Financial Services Ltd. (Switzerland)
17. Prudential plc (United Kingdom)
18. Munich Reinsurance Co. (Germany)
19. Dai-ichi Life Insurance Co. (Japan)
20. Hartford Financial Services Group Inc. (United States)
21. Predica-Prevoyance Dialogue du Credit (France)
22. Berkshire Hathaway Inc. (United States)
23. Meiji Yasuda Life Insurance Co. (Japan)
24. Standard Life Plc (United Kingdom)
25. Sumitomo Life Insurance Co. (Japan)
Largest Insurers Ranked by Net Written Premiums (2009)
1. Axa S.A. (France)
2. Assicurazioni Generali SpA (Italy)
3. Allianz SE (Germany)
4. Japan Post Insurance Co. Ltd. (Japan)
5. UnitedHealth Group (United States)
6. American International Group Inc. (United States)
7. National Mutual Insurance Federation of Agricultural Cooperatives (Japan)
8. Munich Reinsurance Co. (Germany)
9. WellPoint Inc. (United States)
10. State Farm Group (United States)
11. Nippon Life Insurance Co. (Japan)
12. Aviva plc (United Kingdom)
13. Zurich Financial Services Ltd. (Switzerland)
14. Kaiser Foundation Group of Health Plans (United States)
15. CNP Assurances (France)
16. China Life Insurance (Group) Co. (China)
17. ING Groep NV (Netherlands)
18. Dai-ichi Life Insurance Co. (Japan)
19. Prudential plc (United Kingdom)
20. Life Insurance Corporation of India (India)
21. Aetna Inc. (United States)
22. Humana Inc. (United States)
23. Tokio Marine Holdings Inc. (Japan)
24. Allstate Corp. (United States)
25. Berkshire Hathaway Inc. (United States)
Insurance Companies Mentioned
Japan Post Insurance
Japan Post Insurance Co., Ltd was founded in 2006 and is based in Tokyo. Japan Post Insurance is a subsidiary of Japan Post Holdings Co., Ltd and provides life insurance product and services.
AXA
AXA Group is a worldwide leader in Financial Services. Headquartered in Paris, the AXA Group companies are engaged in life insurance, health insurance and asset management services among others. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area.
AIG
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Prudential
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
Zurich
Headquartered in Zurich, Switzerland, Zurich Financial Services Group is an insurance-based financial services provider with a network of subsidiaries andoffices in North America and Europe and also in Asia-Pacific, Latin America and other markets. Zurich is one of the world’s largest insurance groups, and one of the few to operate on a truly global basis. With 60,000 employees serving customers in more than 170 countries, our business is concentrated in three business segments: General Insurance, Global Life, and Farmers.
Aviva
Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.
Assicurazioni Generali SpA
The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is a leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Generali is one of the leading global players in the assistance sector thanks to the Europ Assistance Group, active in more than 200 countries with services in the motor, travel, healthcare, home and family sectors. In recent years, the Group has made a significant return to 14 central-eastern European markets and has set up offices in the principal markets of the Far East, including China and India.
AEGON
AEGON is present in more than 20 countries in the Americas, Europe and Asia, employing 28,000 people and serving more than 40 million customers. AEGON’s ambition is to be a global leader in helping its customers secure their financial futures and, in doing so, to grow its businesses profitably and sustainably. AEGON products include life, pensions, life reinsurance, individual savings & retirement products
MetLife
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Dec
14
Allianz Asia Pacific Confirm Appointment of New CEO
Filed Under Allianz, Insurance Company | 2 Comments
Allianz Asia Pacific has announced the appointment of Kamesh Goyal as Chief Executive Officer of the Asian region; he will be based in Singapore. Kamesh Goyal will move from his current post as the Allianz Country Manager for India and MD & CEO Bajaj Allianz Life Insurance; in addition to his new role he will continue as Allianz Country Manager for India.
Kamesh Goyal became Chief Operating Officer (COO) of Bajaj Allianz General Insurance in 2001 changing rolls in 2004 to CEO, and was later appointed as Country Manager, MD and CEO of Bajaj Allianz Life Insurance in 2007; he originally joined Allianz in 1999.
The insurer has also confirmed that the current COO of Bajaj Allianz Life Insurance – Mr Varghese Philip – will take up the role of CEO in February 2011. This appointment is subject to final approval from the Insurance Regulatory and Development Authority (IRDA) – India’s insurance regulator. Varghese Philip also joined Allianz in 1999 and took part in Allianz’s Indian joint venture with Bajaj when it was first established in 2001.
The current regional CEO for Allianz Asia Pacific – Bruce Bowers – will take up the role of CEO Central and Eastern Europe, Middle East and the North Africa Region (CEEMA) for Allianz; the change will take effect in February 2011. Bruce Bowers succeeds Manuel Bauer, who becomes a member of the Board of Management of Allianz – as announced earlier in the year. Bruce Bowers has more than 30 years experience in the life and general insurance industry, holding a variety of CEO positions within the Allianz Group in the last 10 years.
Allianz is one the world’s largest insurers, providing insurance products and services which include life, health, property and casualty cover for individual clients and corporate businesses. Allianz is a German based financial institution, with approximately 100 subsidiary and affiliated operations sustaining the insurer’s global reach.
Allianz recently released its global results for the third quarter 2010, with the German insurer generating a 2.3 percent increase in operating profit – uplifting profit for this period from €2 billion (US$ 2.6 billion) to € 2.1 billion (US$ 2.8 billion).
Indian based Bajaj Allianz is one the leading private life and general insurers in India. Bajaj Allianz is a joint venture between Allianz and local Indian insurer Bajaj Finserv Limited. Since Bajaj Allianz’s inception in 2001, the Indian based insurer has generated a presence in approximately 1100 locations throughout the country.
Bajaj Allianz is currently in a strong position within the Indian insurance market, which is forecast to grow significantly as the Indian economy continues to expand. The demand for life, saving and healthcare products is set to increase in-line with improving individual financial prosperity.
The Bajaj Allianz product range includes home, motor, travel, business, life and health insurance. The private healthcare sector in India in particular is set to grow substantially as insurers design products to meet emerging health demands for a country with a population in excess of 2 billion people. Other major players in the Indian health sector such as Star Heath & Allied Insurance, Appollo Munich Health and the newly formed MaxBupa will provide Bajaj Allianz with tough competition.
Over the last five years Allianz has performed robustly in growth markets, with Allianz’s Asian operations reporting sound results. Business in Central and Eastern Europe and the Middle East is also reported to have performed well. Allianz state that premiums from the life and health sectors have been the driving force for income generation during 2010 and there are approximately 30 million Allianz customers located in growth markets in Asia and the CEEMA region. Since the global financial crisis, which started in 2007-2008, Allianz’s Asian operations have emerged as the pivotal basis for business growth, with the German insurer recording an average growth in gross written premiums of 24.4 percent between 2005 and 2010 in the the region.
All management changes are subject to approval of the respective regulatory authorities.
Insurance Company Mentioned:
Allianz
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Nov
3
Zurich Enters Indonesian Insurance Market Amidst Record Growth
Filed Under Allianz, Insurance Company, Life Insurance | 9 Comments
Zurich Financial Services (Zurich) has completed a deal to acquire the majority stake in PT Mayapada Life of Indonesia. This will give the multinational Swiss insurer immediate access to the Indonesian life insurance market. PT Mayapada Life is a subsidiary of the Mayapada Business Group – which will retain a 20 percent interest in the Indonesian life insurer – with Zurich holding 80 percent in the new venture.
The new company will benefit from PT Mayapada expertise in respect of the local Indonesian insurance market and distribution channels for life, accidents and healthcare plans, which is combined with the Zurich’s strong reputation in the insurance industry.
In addition to the transaction in Indonesia, Zurich has been active in recent months with the acquisition of Lebanese based Compangnie Libanaise D’Assurance and by increasing its stake in China based New China Life Insurance (NCI). Zurich also reported that it is seeking opportunities for strengthening its presence in the Middle Eastern region.
The finalization of PT Mayapada Life deal means Zurich is acquiring a major stake in a life insurer, which generated US$1.7 million in premiums in 2009.
The long term goal of Zurich is to enter into an agreement with the PT Bank Mayapada International Tbk (Mayapada Bank) in order to use their bancassurance distribution channels and maximize market exposure and competitiveness; the key competitors being PT Asuransi Jiwa Mega Life, PT Asuransi Jiwa Sinar Mas and PT Prudential Life Insurance. The UK based insurance company, Aviva, has also gained entry to the Indonesian insurance market by acquiring a 60 percent stake in Asuransi Winterthur Life.
The acquisition of PT Mayapanda Life by Zurich means that Zurich are now poised to enter an Asian insurance market which is predicting significant growth in written premiums for life and non-life insurance products; the Indonesia insurance industry is forecast to triple written insurance premiums to IDR 254.5 trillion(US$ 28.5 billion) by 2014.
Speaking in June 2010 Zurich’s CEO Global Life Mario Greco, said: “The acquisition of Mayapada Life is a first step in Zurich Life’s expansion plans in Indonesia. It underpins our commitment to developing the market in Indonesia and our strategy of providing protection and saving products to the rapidly growing number of the population with such needs. The Mayapada Group will be a strong local partner as we seek to build key relationships to grow our business in the Asia Pacific region.”
Zurich recently announced its general interest in seeking opportunities in emerging markets and specifically the Islamic takaful insurance market. Takaful is seen as a key long-term insurance business prospect, and, as Indonesia is home to the largest Islamic population in the world, providing Zurich with a major opportunity to take advantage of a growing takaful insurance market with which to further the company’s experience prior to their plans of concentrated growth in the Middle East.
Zurich will face stiff competition from global rivals, who are already established in Indonesia and have created a strong customer base through their well developed network channels and product provision. The likes of Allianz and Prudential have a strong foothold across the Indonesia insurance industry and will be solid competition for Zurich in the country.
Allianz Indonesia has approximately 1.7 million customers, of which 440,000 are Indonesian microinsurance policyholders. Allianz is currently the insurer at the forefront of the Indonesian microinsurance sector; Allianz Indonesia is aiming to increase the number of microinsurance policyholders to 1 million customers by 2012. Heavyweight insurer Prudential – through its subsidiary PT Prudential Life Assurance (Prudential Indonesia) – has over 1 million Indonesian customers and currently holds roughly 10 percent of the Indonesian life insurance market.
The Indonesia government is also providing strong support for the development of the insurance industry in the country, especially the provision of microinsurance for low income families and individuals. The increased competition among insurers in the life and non-life Indonesian insurance industry is seen as an incentive for the provision of better protection products and services for the Indonesian population as domestic and international insurers in the country battle to gain market share.
The Asian insurance industry has emerged from the financial tsunami in 2007-2008 as key a strategic market for global insurers, with the Indonesian life insurance market being one the fastest growing life markets in the region. Indonesia has a population of 240 million people and achieved an average economic growth rate of 5.6 percent per year between 2007 and 2009. Indonesia has been able to emerge from the economic downturn relatively unscathed enjoying prosperity similar to regional powerhouses China and India. Reforms in the regulation of the Indonesian financial services industry, expansion of insurance distribution and a broader range of protection products are forecast to have a positive effect on the Indonesia insurance sector in the coming years, and meet the demands of a population experiencing an improvement in individual wealth.
The planned reform of financial services in Indonesia will require all insurers to have a minimum of IDR 100 billion (US$11.2 million) capital to meet standards being imposed by the regulatory authority – Bapepam-LK – by 2014.
The overall value of the life insurance business in Indonesia amounted to IDR 62.3 trillion (US$6.9 billion) – in terms of premiums generated – which is predicted to increase by more than threefold to IDR 191.1 trillion(US$ 21.4 billion) by 2014. The non-life insurance activity is also forecast to grow from IDR 27.2 trillion (US$3 billion) in 2009 to IDR 63.4 trillion (US$7.1 billion) in 2014.
Insurance Companies Mentioned:
Zurich
Headquartered in Zurich, Switzerland, Zurich Financial Services Group is an insurance-based financial services provider with a network of subsidiaries andoffices in North America and Europe and also in Asia-Pacific, Latin America and other markets. Zurich is one of the world’s largest insurance groups, and one of the few to operate on a truly global basis. With 60,000 employees serving customers in more than 170 countries, our business is concentrated in three business segments: General Insurance, Global Life, and Farmers.
Allianz
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Prudential Indonesia
PT Prudential Life Assurance (Prudential Indonesia) was established in 1995 and is subsidiary of Prudential plc, a leading international financial services group from the United Kingdom. Prudential Indonesia has sales offices in Jakarta, Medan, Surabaya, Bandung, Batam, Denpasar and Semarang. In 1999, Prudential Indonesia launched the unit-linked (life insurance combined with investments) product, making the insurer on of the market leaders in Indonesia.
Oct
29
Chinese Bank ICBC Gains Access to Life Insurance Sector
Filed Under AIG, Allianz, China, China insurance, Income Protection, Insurance Company, Life Insurance | 7 Comments
Industrial and Commercial Bank of China (ICBC) has agreed to buy a major stake in the French-Chinese joint venture AXA-Minmetals Assurance Company. The move by the Chinese Bank ICBC will make them the majority shareholder and add to its non-banking revenue stream.
The initiative by ICBC to acquire the 60 percent share in AXA-Minmetals Assurance comes as the Chinese bank announced that it gained a 27 percent increase in profits during the third-quarter of 2010 with net income of 42.6 billion yuan (US$ 6.4 billion) up from 33.6 billion yuan (US$ 5.05 billion) in the previous year.
ICBC – the world’s largest bank by market value – will invest 1.2 billion yuan (US$180 million) for a 60 percent stake in the French joint venture company AXA-Minmetals Assurance. The deal will subsequently mean the company being named ICBC-AXA Life Insurance Company. The general management of the business will headed by the AXA-appointed president.
The deal struck by ICBC and AXA-Minmentals will strengthen the company’s presence in an ever developing insurance market. Henri de Castries, Chief Executive of AXA said “AXA has full confidence in the business growth opportunities in the Chinese market and this cooperation with ICBC is ideal to increase our respective interests and presence in the Chinese insurance market.”
The link with AXA-Minmetals will facilitate ICBC’s entry into the Chinese life insurance market and add to its non-banking business, gaining access to the health, retirement, education, children and wealth insurance products.
ICBC chairman Jiang Jianqing said regarding the deal: “ICBC boasts a strong customer base, complete service network and increasingly expanding influence in both domestic and global markets. ICBC’s investment in AXA-Minmetals is an important initiative to promote the comprehensive operation strategy and build core competitiveness. ICBC will fully leverage our leading advantages in banking industry to fully promote this strategic cooperation. We believe this strategic cooperation of ICBC with AXA and Minmetals will bring sound investment returns to the shareholders as well as quality and all-round financial services to customers.”
ICBC’s substantial stake in AXA-Minmetals will provide a sound basis for the newly formed company to penetrate the expanding insurance market in China, which has seen company consolidations in 2010, and will enable it to compete with dominant domestic players such as Ping An and China Life in order to gain market share.
China’s second largest insurer Ping An announced plans to merge with the Shenzhen Development Bank in September 2010. This will increase Ping An Insurance’s presence across the country linking with Shenzhen Development Bank’s outlets, expanding the reach of Ping An Insurance and improving prospects for market growth.
ICBC continues the trend of large corporations investing in the Chinese insurance industry reflecting the value of the market which is estimated to be worth US$100 billion. Businesses have been keen to bolster their presence in the world’s second largest economy which is set to continue to grow. Since the onset of the 2007-2008 financial tsunami and the adverse impact on global markets – followed by the subsequent partial recovery – international insurers, banks and finance institutions have been looking for new avenues to develop income growth; China has emerged at the forefront of business opportunities in this direction.
In the same week, ZURICH Financial Services (Zurich) announced that it will maintain a 20 percent stake in New China Life Insurance (NCI) worth US$420 million – a move justified in order to keep a foothold in China’s fast-growing insurance sector. Also Taiwanese based Fubon Life has agreed to enter into a joint venture with China based Nanjing Zijin Investment to create a life insurance company.
Insurers have been particularly active in 2010 looking for opportunities to increase their presence in the Chinese insurance market. This recognizes the prospects derived from a country with a population exceeding 1.3 billion people, composed of an increasingly more prosperous middle-class sector looking for financial and life protection as their personal wealth increases. Also, the Chinese economy has been confirmed as the second largest in the world in 2010, providing global insurers with a large degree of confidence that ventures into this market is justified.
Since tight restrictions on financial trading where lifted in September 2009, the Chinese financial services market has opened up, leading to an influx of international and domestic investment transactions, with global players spearheading business ventures.
The AIA Group, through its pan-Asian life assurance subsidiary AIG, plans to target middle class citizens in China by opening up offices in second and third tier cities to capitalize on sales. This follows their much published floatation on the Hong Kong Stock Exchange.
In 2010, insurers already established in China have boosted their paid up-capital; this includes Allianz China General Insurance – a subsidiary of multi-national Allianz – and the joint venture between ING and Bank of Beijing. These moves by insurers are in anticipation of the Chinese insurance market offering a scope for premium increase.
Domestic China insurers – China Life Insurance (CLI), Ping An Insurance Group of China (PAIGC) and China Pacific Insurance Corporation (CPIC) – have continued to be robust this year, although the market has been more competitive with new entrants to the Chinese insurance industry. The China Insurance Regulatory Commission (CIRC) has also granted existing insurers in China permission to expand operations in different provinces. This has benefitted the likes of Taiping Life, Liberty Insurance Company Limited (LICL), Manulife-Sinochem, MetLife, Chubb and other established insurers enabling them to improve the disposition of their operations and reach across China.
Since the Chinese Financial Regulator’s lifting of restrictions on banks from investing in the insurance sector in September 2009, there has been a surge in business activities in the insurance market in China. This has been lead by Chinese banks, looking to gain access to this lucrative and expanding sector. Notable transactions include the Bank of Beijing acquiring a 50 percent stake in ING Capital Life and Bank of China agreeing terms for a 51 percent stake in Heng An Standard Life.
The Government of the People’s Republic of China has eased restrictions and regulations within the country’s financial markets, with the aim of liberalizing the market in order to facilitate the country becoming a leading world financial hub. As a result, direct foreign investment is expected to continue to be attracted to the Chinese insurance markets.
Companies Mentioned:
AXA-Minmetals Assurance
AXA-Minmetals Assurance is the first Sino-French insurance company in China and also the first life insurer approved by China Insurance Regulatory Commission. Established in Shanghai in May 1999, the company has boasted stable and sustainable development with its ambition of Becoming the Preferred Company. In September 2010, AXA-Minmetals has achieved a total premium income of RMB 830 million, increased by 54% compared to the same period of last year and its new business volumes have also increased by 75%.
ICBC
By the end of 2008, ICBC had altogether 385,609 employees and 16,386 domestic and overseas branches, providing extensive and high-quality financial products and services to 190 million personal clients and 3.1 million corporate clients.
Zurich
Headquartered in Zurich, Switzerland, Zurich Financial Services Group is an insurance-based financial services provider with a network of subsidiaries and offices in North America and Europe and also in Asia-Pacific, Latin America and other markets. Zurich is one of the world’s largest insurance groups, and one of the few to operate on a truly global basis. With 60,000 employees serving customers in more than 170 countries, our business is concentrated in three business segments: General Insurance, Global Life, and Farmers.
Allianz
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
AIG
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Oct
28
Zurich Targets Middle East and China Markets
Filed Under Allianz, Insurance Company, Middle East, UAE Insurance | 7 Comments
Zurich Financial Services (Zurich) sees emerging markets and Islamic insurance – known as ‘takaful’ – as key long-term opportunities. Zurich intends to continue looking for potential acquisitions in globally emerging markets, and envisages good prospects in the Middle Eastern region to grow its market presence.
As Zurich looks for future acquisitions to strengthen its position in the international insurance market, it highlights the Middle East as having capacity to generate significant returns; the ‘takaful’ industry is expected to grow 15 percent annually over the next 5 years, and generate premium income exceeding more than US$7 billion.
Zurich is looking for bolt-on acquisitions to gain access to emerging markets in a region which has increasingly caught the eye of global insurers. In October 2010, Zurich bought privately-owned Lebanese insurer, Compagnie Libanaise D’Assurance , and has set up a management unit dedicated to the African and Middle East region to take full advantage of the emerging insurance sector.
International insurers are poised to take advantage of the developing Middle Eastern market recognising the opportunities offered by large populations in a financially prosperous region. Zurich will be competing with heavy weight insurers AXA and Allianz who are set to lead the charge in an insurance market which has not completely matured. However, local insurers are well positioned in the market having an established presence and are set compete with global insurers.
The United Arab Emirates achieved a 10 percent increase in life and saving premiums in 2009 but, in general, the life and savings insurance segment in the Gulf and Middle Eastern region remains under-developed. This is mainly because governments have not installed incentives for these segments – unlike the property and casualty insurance sectors – which have seen significant growth over the years.
The sharia-compliant insurance sector – also known as ‘takaful’ – is an Islamic insurance concept, which has caught the eye of foreign insurers who see great potential in the region. The sector’s regulatory system is being rapidly transformed, which enables domestic insurers such as Dhabi National Insurance Company, and Saudi’s Tawuniya, to be well placed to build on their current dominant position in the market. This will present international insurers with the challenge of gaining access and producing products which are attractive and competitive to the region’s communities. Nevertheless, ‘takaful’ poses a tremendous opportunity for insurers who can break into the region.
The current reach of Zurich International Life in the Middle East region includes residents in Bahrain, Qatar and the United Arab Emirates offering saving, investment and protection products.
Following the acquisition of Lebanese insurer Compagnie Libanaise D’Assurances, Zurich will soon have access to markets in Lebanon, Kuwait and Oman giving them a strong foothold in these emerging markets, while continuing to look for potential bolt-on acquisitions to strengthening its foothold in the region and take advantage of increasing premium revenue.
Zurich has also announced plans to buy up to US$420 million worth of shares in New China Life Insurance (NCI) in a move which will mean they maintain a 20% stake in the company. It follows NCI’s decision to participate in a share issue in order to expand its capital base. The decision by Zurich to continue its significant stake in NCI follows the company’s premium income expansion by more than 50% year-on-year in 2010.
Zurich initial investment in the Chinese based insurer began in 2000, with the purchase of 280 new shares in NCI fixed at RMB 10 (US$1.50) per share. In June 2010, Zurich’s total investment in NCI was valued at US$131 million.
Zurich’s CEO Martin Senn said: “Our decision to participate in NCI’s share issue reflects our belief that China’s fast-growing insurance sector represents an attractive investment opportunity. The Chinese government has expressed a clear intent to further develop the country’s insurance market and NCI is well-positioned in the life market. In addition to our investment in NCI, we continue to focus on building our own insurance business in this important growth market.”
The initiative by Zurich to continue its significant stake in NCI follows a year when other global insurers have expanded or developed a presence in the world’s second largest economy. With the growth in China’s economy set to continue, NCI’s is well positioned – with its base in Beijing – to maximise its share in the Chinese life insurance market.
Zurich acquisitions and positive developments in recent times enables the company to be well placed to meet the needs of a changing insurance market and to enable it to focus on further growth in an insurance market set to expand.
The current reach of Zurich International Life in the Middle East region includes residents in Bahrain, Qatar and the United Arab Emirates, providing saving, investment and protection products. And with the acquisition of Lebanese insurer Compagnie Libanaise D’Assurances they will soon have access in Lebanon, Kuwait and Oman giving them a strong foothold in an emerging market, while looking for potential bolt-on acquisition to continue strengthening its foothold in the region taking advantage of the increasing premium revenue.
Insurance Companies Mentioned:
Zurich
Headquartered in Zurich, Switzerland, Zurich Financial Services Group is an insurance-based financial services provider with a network of subsidiaries and offices in North America and Europe and also in Asia-Pacific, Latin America and other markets. Zurich is one of the world’s largest insurance groups, and one of the few to operate on a truly global basis. With 60,000 employees serving customers in more than 170 countries, our business is concentrated in three business segments: General Insurance, Global Life, and Farmers.
New China Life Insurance
New China Life Insurance Co.,Ltd (NCI）has headquarters in Beijing and was established in 1996 It is a large national insurance company, with products
including traditional protection products, bonus products as well as the products that have a strong financial management function. With sustained, healthy and harmonious development of the company, the brand value of NCI is a valuable asset.
Oct
28
Microinsurance Will It Satisfy Global Demand
Filed Under Allianz, Aviva, Health Insurance, Income Protection, Insurance Company, Life Insurance, Philippines | 6 Comments
The purpose of microinsurance is to provide basic, low cost insurance cover to individuals on low incomes requiring protection for typical risks including the affects of serious weather conditions, healthcare, life and non-life products. Microinsurance offers security for individuals who need insurance protection but until now have been unable to afford the relatively high cost of cover.
Insurers are seizing the opportunity to cooperate with international agencies in providing microinsurance to populations in less developed countries, with further scope for providing insurance cover to the less affluent citizens in the more wealthy trading nations. The potential for provision of this type of insurance – by exploiting the scope for attracting high numbers of contributors making regular payments into a fund – is considered to be vast.
It is estimated that there are three billion low income individuals globally who would reap benefits and comfort from low cost insurance. The scale of the market clearly represents a tremendous commercial opportunity for local and multi-national insurers, and, at the same time, it will enable the companies to make a significant ethical contribution to social needs.
Global poverty and the recession will be the key drivers in the growth of the microinsurance business, which is already estimated to be used by 135 million people worldwide. The demand for affordable indemnities is on the rise with insurers in regions such as Africa and South East Asia taking steps to initiate microinsurance programmes.
The challenge insurers, aid agencies and governments face are promoting the concept of insurance to communities which have no or little previous knowledge of commercial and personal protection. Insurers also need to consider the commercial aspects of providing insurance for low level premiums and the trade-off on the volume of potential customers taking out indemnities.
In addition to the sale of microinsurance to new markets, the impact of the 2007/8 financial collapse, the global recession and the imposition of austerity measures in major western hemisphere countries is expected to open up additional opportunities for the sale of microinsurance; a notional estimate portrays the prospect of 50-90 million low income people being plunged into poverty in developing countries. The question then posed is whether more micro policy providers will be needed.
Recessionary pressures and economic factors will undoubtedly influence the size of the microinsurance market, but a number of other variables will contribute to this including climate change and its impact on flooding and droughts.
The provision of international microinsurance is already taking shape. In Indonesia, Allianz has secured 230,000 new customers with microinsurance policies where premiums range from IDR 10,000 (US$1.23) to IDR 100,000 (US$11.2); in a country, with a population of 240 million people, the potential for an increase in business is tremendous and Allianz Indonesia intends to expand its sales force to 50,000 agents by 2015 in order to capitalise on this opportunity. These efforts are supported by the Indonesian government.
It is estimated that the micro insurance market in Africa could be worth US$25 billion driven by a potential customer base of 700 million people. Figures indicate that around 147 million African lives are currently covered by microinsurance polices, which generates approximately US$ 257 million in premiums for insurers. Countries such as Kenya has seen a small take-up of microinsurance, but it was reported by the Association of Kenya Insurers (AKI) that there is still scope for significant improvement – but it is predicted that it may take up to three years for the insurers to develop products to meet the needs of the low-earning population. Unlike emerging and developing Asian nations, countries in Africa generally show little sign of underlying prosperity and the insurers have been slow in seeking market penetration.
Microinsurance is already popular in the Philippines where there is significant exposure to natural disasters – Munich Reinsurance has been particularly active in providing indemnities for this category of risk in this nation. Also, the healthcare system in the Philippines is currently in the early stages of planning the reform of the public healthcare service, where out-of-pocket payments are currently a main contributor to overall funding. This causes a problem for many of the local inhabitants and the government is in the process of establishing the Philippine Health Insurance Corporation (PHIC) to give poorer Filipinos access to better quality healthcare. This is being run alongside the National Strategy and Regulatory Framework for Microinsurance, which is promoting growth of the insurance sector by providing scope for equal and fair access to affordable Philippine mircoinsurance products, thereby raise the general standard of health of the population this country.
Asian countries are keen to take advantage of the microinsurance sector and the issue was raised specially at the East Asian Insurance Congress held in Bali in October 2010; governments and insurers were in unison in recognising the benefits for residents with low levels of earnings requiring the complete range of insurance cover which could be made available.
The BRIC countries – Brazil, Russia, India and China – are recognised as economic powerhouses; however, there are sizeable elements of the very large populations not reaping the benefits of national prosperity. With a wide range of insurers present in these countries, it should be possible to develop insurance products to satisfy emerging demand. India has been at the forefront of developing the microinsurance sector, with large pockets of low income people spread across the country – about 70 percent of India’s 1.2 billion population live in rural areas – and companies such as Bajaj Allianz and Aviva are able to offer life protection policies starting at as little as US$0.50 per week.
Zurich Insurance has increased its focus on providing microinsurance products in Asia, Africa and Latin America and has established good relations with international aid organizations to ensure appropriate products are designed to cater for the needs of the disadvantaged populations in the regions. Latin America has a population of approximately 569 million people, with around a quarter of those people being on low incomes; it is therefore vitally important for all parties involved with the provision of microinsurance do so to meet the needs of this element of society.
Insurers and governments will play pivotal roles in the further development of the microinsurance sector on a worldwide basis. This will fulfill many benefits, firstly, by providing the less advantaged populations in many countries with valuable insurance cover and thus providing invaluable peace of mind to this element of society and, secondly, by providing a mechanism for expanding and improving the robustness of the insurance industry. Microinsurance is not about corporate benefits, it is a means of achieving social equality particularly in the healthcare sector where many countries are looking to reform the structure of health service provision and micro insurance will be an important step in enabling this to happen.
Insurance Companies Mentioned:
Allianz
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Zurich
Headquartered in Zurich, Switzerland, Zurich Financial Services Group is an insurance-based financial services provider with a network of subsidiaries and offices in North America and Europe and also in Asia-Pacific, Latin America and other markets. Zurich is one of the world’s largest insurance groups, and one of the few to operate on a truly global basis. With 60,000 employees serving customers in more than 170 countries, our business is concentrated in three business segments: General Insurance, Global Life, and Farmers.
Aviva
Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.
Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. It operates in all lines of insurance, with around 47,000 employees throughout the world. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. The primary insurance operations are mainly concentrated in the ERGO Insurance Group. ERGO is one of the largest insurance groups in Europe and Germany and 40 million clients in over 30 countries place their trust in the services and security it provides. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand.
Sep
7
Allianz Global Corporate & Specialty Opens New Office in Spain
Filed Under Allianz, Insurance Company, Spain | Leave a Comment
Allianz Group’s dedicated corporate insurance arm, Allianz Global Corporate & Specialty (AGCS), is set to open up a new branch office in Madrid, Spain.
Allianz Global Corporate & Security will be taking over the local portfolio of large-size corporate insurance customers from the local Allianz unit, Allianz Compañía de Seguros y Reaseguros, SA (Allianz Seguros). The new AGCS branch will work closely with Allianz Seguros in their efforts to write more than EUR 120 million (USD 153.7 million) in 2010.
The new branch of AGCS will be led by Agustin Martin, who will take charge of the 52 employees whom will staff the new office. Clients and brokers will be receiving full service and products across five lines of business from the new AGCS branch; including property, engineering, aviation and marine insurance, financial lines, and liability insurance.
Allianz expects the new Madrid office to benefit from Allianz Global Corporate & Strategy’s AA rating from Standard & Poor’s. The new office will be part of the AGCS network which spans over 150 countries via network partners and Allianz offices.
The Chief Executive Officer of Allianz Global Corporate & Security, Axel Theis, said that “Spain is an important market for AGCS, which is why we need to have a dedicated team in Madrid close to our clients. There is a lot of demand for our services here, particularly from Spanish clients with international insurance requirements who need easy access to our specialist services and worldwide network.”
Insurance Companies Mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Sep
6
Allianz Strategically Targets Asia and Pacific Regions for Growth
Filed Under Allianz, China, Insurance Company, Life Insurance | 3 Comments
Allianz SE, the holding company of the German insurer Allianz Group, is strategically aiming to drive their business growth by targeting the insurance markets of China and India, boosted by revenue generated by the sale of both life and non-life insurance products.
The Asian and Pacific regions are perceived to hold the key for continued growth, after Allianz achieved a 31 percent increase in gross written premiums totaling US$7.1 billion (EUR 5.6 billion) in this region during the first half of 2010.
In the words of Bruce Bowers, chief executive of Allianz Asia Pacific: “We are convinced that Asia will remain a growth region and our own economists have forecast a 7.5 percent growth in the Asia/Pacific region with insurance penetration still being low in most countries.”
Both China and India have ongoing infrastructure projects with massive amounts of investment, which contribute to new business development in the lines of industrial and commercial insurance. Also in the Asian region, Indonesia continues showing promising signs of development in the growing business of life and non-life insurance products.
Allianz sees big potential in terms of sales expansion and distribution, as well as an opportunity to develop new products. For the first six months of 2010, Allianz reported a 17 percent increase in operating profit equivalent to US$397 million (EUR 313 million) in the Asian and pacific regions. Worldwide, the Allianz group reported a 22 percent increase in operating profit amounting US$4.95 billion (EUR 3.9 billion).
The engine for business growth in the Asian region for Allianz is life insurance. According to figures recently released in a financial statement by the group, premiums from the sale of life insurance products rose 40 percent to US$5.2 billion (EUR 4.1 billion) during the first six months of 2010, in comparison to the same period a year earlier.
Insurance Company mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
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