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Globalsurance has learned that Aviva Ltd is set to stop providing medical insurance products in Singapore to some of its clients, potentially impacting 5,000 to 10,000 insured people on the IdealMedical and Global Health plans. It is understood that Bupa International and Raffles Health Insurance (RHI), who partner in Singapore, will offer Aviva clients the option to transfer to a new plan of similar design but with different premiums. The transfer appears not to be subject to underwriting, but personal exclusions on Aviva policies at the time of transfer will not be removed.

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Last months’ 2012 Health Insurance Awards held in Glasglow, England, saw many companies recognized for their efforts in the health insurance industry both in the United Kingdom and internationally. Many of the health insurance companies that received awards and honors at the event, which is widely considered as one of the leading industry events in the UK that showcases professionalism and excellence in the medical insurance industry, work with Globalsurance.

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As the European financial situation becomes more uncertain with each day passing, Vhi Healthcare, Ireland’s largest health insurance company must raise €300 million (US $368.55 million) which could affect the premiums of over 2.2 million Vhi policyholders.

Vhi, short for Voluntary Health Insurance, is generally referred to as “The VHI” by residents of Ireland and is traded under the brand Vhi Healthcare. With headquarters in Dublin, Ireland, VHI is a state-controlled corporation which has been accused of being given preferential treatment above its primary competitors. It is regulated by the Health Insurance Authority which is the private health insurance regulatory board, monitoring activities in Ireland.

The issue at hand is that Vhi Heathcare is guaranteed by the State, meaning that it is not required to keep specific reserve amounts on hand in the event there is a spike in the number of claims. In addition to the guarantee, it cannot be declared bankrupt.

Competition experts and analysts say that preferential treatment towards Vhi needs to end in order to restore balance to the private healthcare market.

The preferred status for Vhi has allowed to it borrow funds at advantageous rates, in addition to the lack of need to keep a reserve balance. Lenders are happy to oblige to Vhi’s requests as the loans were essentially risk free due to the fact that the government would pick up the bill if Vhi defaults. However, the likelihood of Vhi defaulting and going bankrupt is almost impossible as it is a statutory body.

The European Commission has called for an end to the preferred status of the company, and has proposed that the government end the guarantee by the end of 2013. Vhi Healthcare was receptive to the proposal; however it made note that a risk-equalization plan will need to be implemented.

Initially, there had been plans to privatize Vhi Healthcare back in 2010. However, the new coalition government decided to retain Vhi when it entered office, making it a pillar of the universal health insurance system which is scheduled to be rolled out in 2016. Under this plan, all citizens will be required to purchase health insurance from an insurance provider, not exclusively Vhi, and the government would provide a subsidy of some sort for those who meet the low income criteria.

Currently, Vhi is required to raise €300 million (US $368.55 million) in capitalization and one of their options to do so include raising the premiums of its 2.2 million clients. This €300 million (US $368.55 million) is to increase the solvency ratio of Vhi, ensuring the insurance company has enough money on hand to cover any unexpected spike in claims. Should Vhi decide this is the best way for it to raise capital, clients of Vhi can expect to see their premiums to be raised by up to €135 (US $165.85) this year. Moving forward, Vhi will have to retain 40 cents to the euro in income to safeguard itself as per regulations.

Meanwhile, competitors welcomed and encouraged the move to abolish the guarantees and preferential treatment for Vhi. Specifically, Aviva stated that the clients of Vhi should not be negatively affected by the increase in premiums due to an external cause from the government. Aviva called on the government to provide more details as to how it plans to handle the solvency requirements of Aviva.

In related news, the government of Ireland has recently hired a new CEO for Vhi. The coalition government, however, breached the salary limitations which are imposed on maximum salary limits for new CEO’s of Vhi. Vhi’s new chief is John O’Dwyer, and his annual income will be €238,727 (US $293,276.12); this represents almost €50,000 (US $61,425) more than the limit.

Despite the limits in place, Minister Brendan Howlin stated the need for exceptions in specific cases, especially in the case of Vhi due to some of the substantial changes that are about to take place.

This comes at a time full of volatility for the European financial industry. With Euro prices falling and shrinking, or failing, economies, Vhi’s deregulation will need to be handled with care. If safeguards are not in place, many individuals who hold policies may no longer be able to afford their current plans. If they choose to move away from their current plans, they may not receive adequate coverage as competitors may not want to offer the same plan for the same price, which could cause greater uncertainty into the lead up to the introduction of the universal health insurance system.

Insurance Companies Mentioned:

Vhi Healthcare

Vhi is a statutory corporation with members appointed by the Minister of Health in Ireland. Vhi is the larges health insurance company in Ireland

Aviva

Aviva is a British insurance company with global operations. As one of the world’s largest insurance companies, it has over 40 million customers and is a market leader.

Aviva Indonesia is introducing an International Health Insurance product offering to the Indonesian market in response to a growing number of expats and well heeled local Indonesians.

The portfolio offers international health insurance coverage with limits between US$1-2 million, depending on the product, and will allow holders of a policy to travel internationally in order to receive qualifying  medical treatment.

According to Aviva Indonesia’s vice president, Albert Wanandi, the products are targeted squarely at the wealthy Indonesian and expatriate market, with premiums starting at around US$ 1,360 per annum.

Read the rest of the Aviva Indonesia Targets Affluent Indonesians and Expatriates with International Coverage Offerings article.

As part of a general wave of European institutions putting their Asian operations up for sale, five insurance firms have expressed an interest in purchasing British Firm, Aviva’s, 49 percent stake in its joint venture with Malay bank, CIMB. These sales come on the back of an increasingly unstable European economy which has affected both Aviva and Dutch company, ING, also currently looking to sell their Asian insurance business.

While some European companies are leaving APAC, the increasing number of potentially attractive acquisitions in Southeast Asia has paved the way for a number of large global insurance firms, including AXA and Manulife, to increase their exposure in the region’s relatively small but rapidly growing life insurance market.

According to Norton Rose, a law firm that specializes in insurance, Southeast Asia holds less than 0.25 percent of the world’s insurance market share. However, this year alone life insurance premiums are expected to grow by 9.6 percent, 5.9 percent greater than the world’s average. These positive predictions follow the Southeast Asian life insurance market growing 15.4 percent in the last ten years, a lot more than the 5.7 percent growth seen worldwide.

Aviva’s imminent exit comes only five years after the firm entered the Malaysian insurance market in June 2007. According to CIMB, the Malay bank that it entered into a joint venture with, Aviva paid 500 million ringgit ($164 million) to purchase the 49 percent stake that it is now looking to sell. Their decision to sell their Malaysian venture is part of larger plans to sell their underperforming businesses globally, including those in Sri Lanka and South Korea in an attempt to raise money to protect it against Euro Zone exposure.

Aviva has had problems with their insurance products in Asia, specifically their range of Global Lifecare plans which the company has since canceled.

Sources have indicated that the sale of Aviva’s stake could result in a new bancassurance (BIM) deal between CIMB and any potential buyer, who will also control the future of the venture. Furthermore, depending on the nature of the sale, competition between foreign and domestic companies could increase in the Malaysian life insurance market currently dominated by local life insurance company, Great Eastern Life.

According to sources with knowledge of the Aviva-CIMB auction being handled by Morgan Stanley, the five interested parties, AXA, AIA, Prudential, Manulife and Sun Life have all submitted non-binding bids that will be considered by Aviva and CIMB in “a week or so”. Of the five, Prudential boasts the strongest presence in Southeast Asia as it is currently an industry leader in Indonesia with 1.4 million policy holders.

Low life insurance penetration rates throughout Southeast Asia have been identified as one of the reasons for the huge amount of interest in securing slices of market share. In Indonesia for example, where Swiss, Japanese and Korean insurers have expressed an interest in investing in its insurance market, the life insurance penetration rate is a mere 1.3 percent. The attractive nature of the Southeast Asian markets has also been compounded by the relatively easy foreign ownership regulations. In Malaysia, foreign owners are allowed to buy up 70 percent of a domestic insurer, while in Indonesia they’re allowed to purchase 80 percent.

Insurance Companies Mentioned:

Aviva

British firm Aviva is the sixth largest insurance firm in the world. Based in London, it has approximately 43 million customers in 21 countries. In the United Kingdom, Aviva leads the market in general, life and pension insurance in the UK.

ING Insurance

Formed in 1991 Dutch institution ING is a group that specializes in a number of financial services including insurance. It currently has a presence in more than 45 countries with a client base of 85 million individuals.

AXA

AXA is a French insurance firm based in Paris, France. Ranking in as the ninth largest company in the world, AXA specializes in life, health and other forms of insurance.

As the European debt crisis continues to take its toll on affected countries, numerous companies are revamping their businesses strategies to keep their heads above the waves.

Britain’s second-biggest insurer, Aviva, has increasingly felt the impact of Europe’s unstable economy and recently came under fire when its large exposure to the eurozone crisis contributed to a drop of 38 percent in share prices.

Aviva previously announced it would be reconsidering its investments in 45 businesses and cutting ties where they no longer predict sufficient growth.

Insurance companies holding stronger positions in the market, such as AIA and Prudential, are looking towards expanding in Asia to overcome Eurozone difficulties. However, due to recent incidents, Aviva needs to improve its shareholder value as quickly as possible and therefore seeks to exit non-core operations and focus on their home markets.

Aviva first teamed up with Malaysian CIMB in 2007 when it paid USD $119.4 million for a 49 percent stake in two of the company’s units. Sources with knowledge say the group is now in the process of exiting this joint venture and has hired Morgan Stanley to oversee the sales process.

In Sri Lanka, the acquisition of Eagle Insurance in 2010 resulted in the formation of Aviva NDB. Based on recent figures, the company has a market value of 36 percent which would value Aviva’s 51 percent stake at USD $18 million to prospective buyers. Sources predict AIA group, Manulife Financial and Prudential will be among potential bidders.

Aviva entered South Korean markets in 2008 when the company teamed up with Woori Financial and purchased LIG Insurance for USD $115.3 million. It has now been speculated that the two partners have informally discussed exploring the sale of Aviva’s 41 percent stake in LIG; but Woori declined further comment.

Other European financial institutions appear to be taking similar measures to secure their base markets with Royal Bank of Scotland selling a share in its investment banking operations to CIMB and ING Group N.V beginning the process of selling its Asian Life Insurance and asset management business.

While some companies are exiting Asian markets, others are re-considering their investments in Europe.

Insurance Australia Group feels that with the current UK economic conditions, now is a suitable time to reassess their UK business investments and strategies.
IAG CEO, Mr. Mike Wilkins, aims to prioritise returning the groups UK businesses to profitability. Positive progress has taken place so far this year so IAG is now discussing the most efficient way to maximize shareholder value given the UK’s current economic climate.

With equities in Red Star, the UK’s fifth largest motor insurer, one option for IAG is to refine their business strategy so as to solely focus on motor insurance. IAG also discussed continuing to improve the group’s performance within their current operating model or explore what options are available for a sale in part of or all of their UK business investments.

Continued instability within the European business climate will undoubtedly lead to additional companies undergoing strategic reviews such as these and as a result, interesting but unpredictable developments are sure to be in store for international insurance companies.

London based insurance company Aviva is now the sixth largest insurance group worldwide and the largest provider of life and general insurance in the United Kingdom.

Despite having a strong start to the year so far, Aviva will be undertaking a much needed strategic review of its businesses to aid the company in its recovery after the departure of Chief Executive Officer Andrew Moss.
Moss, having held his position since 2007 stepped down on the 8^th of May after the shareholder’s unhappiness at his pay and performance was making it too difficult for him to continue in a successful manner.

Now in charge, executive deputy chairman John McFarlane has been set with a number of tasks with priority residing in acquiring a new CEO. McFarlane reports this could take the rest of the year as it is paramount that an excellent candidate is selected so as previous events are not repeated. However, with Aviva share prices already down 10% since the departure of Andrew Moss, it would seem McFarlane needs to act with greater urgency.
In addition, McFarlane has been developing strategies to improve Aviva’s current condition which he hopes will be put in motion by July. The acting CEO plans to have Aviva reconsider its investments in 45 business units so as to ensure the company can improve performance in businesses that offer sufficient promise for the future and rid themselves of those that do not. He hopes this will enable Aviva to strengthen its capital base and boost share prices, especially as recent reports are reflecting the increasingly tough conditions the euro crisis is bringing about for the company.

Continuing with the trend of the last 5 years, Aviva has underperformed rivals Prudential and L&G with stocks decreasing by 8% since the beginning of the year. The Euro zone crisis has of course taken its toll on their rival companies as well but as Aviva generated 40% of its operating profit last year in Europe alone, it appears to be feeling more of an impact and has already seen a 5% drop in its life insurance sales so far this year.
Spain and Italy in particular, have been hit hard by the recession where reports in Life and Pension sales reflected an overall 23% decrease.
Worldwide, Aviva’s total sales, which include general insurance premiums, were down 3% at a total of 15.3 billion US Dollars but on a positive note, the company’s asset management funds have seen a healthy inflow of 1.6 billion US dollars in the first quarter alone.

The recession is making life difficult for all European citizens, including Aviva’s own employees. Aviva Ireland mentioned last week that between 500 to 540 redundancies will unfortunately be enforced due to the current economic climate in the Euro Zone.

Like other companies involved with Europe, It appears that the Aviva group will continue to struggle in certain areas until the business landscape becomes more stable. In the mean time, it is clear the company requires a positive management situation to assist them in moving forward and overcoming whichever obstacles the recession will undoubtedly create.

UK-based Aviva is moving to build a network in the United Arab Emirates to provide international health insurance products to expatriates situated on the Arabian Peninsula.

Many countries in the Gulf Cooperation Council (GCC) are facing rising costs of healthcare, often due to a rising number of instances of lifestyle related diseases such as diabetes and heart disease. Abu-Dhabi alone spends approximately AED1 billion (US$272 million) every year on healthcare costs associated with treating young diabetics at risk of suffering heart disease in the future.

Read the rest of the Abu Dhabi Health Insurance article

In recent weeks there has been a wave of news from within the international Health insurance industry revealing that Latin America is causing a host of issues for Health Insurance companies.

The leading causes of concern are primarily fraudulent claims being submitted under plans, and massive overcharging by healthcare providers for individuals seeking treatment who are in possession of medical insurance coverage. Both these issues are leading to increased health insurance loss ratios for most companies providing policies to the region, and is placing the continued viability of international health insurance for LatAm in doubt.

This is especially concerning considering the fact that Latin America has weathered the global economic downturn in a fairly robust manner. Brazil, for instance, as a key market for many international insurance companies and a major emerging BRIC economy should present high growth opportunities for insurers.

Despite the perceived opportunities in the Latin American health insurance market insurers are increasingly wary of the region and are slowly beginning to pull out of these markets. One such insurance company planning to leave LatAm is Nordic, the health insurance brand of Europæiske Rejseforsikring A/S; Nordic has revealed that it plans to cease the sale of NHC Americas Health Insurance products.

The company is also moving towards a complete withdrawal from Latin America, and will no longer sell NHC products through Agents or Brokers located in the region.

The move has surprised many industry insiders as it has been known that Latin America was one of Nordic’s biggest markets, and the company was well placed to capitalize on the expansive economic growth of the region over the near term future.

However, Nordic sources have revealed that this withdrawal from the LatAm health insurance market was instigated after an extensive internal review, and is being conducted in order for the company to consolidate its positions in other markets, with Asia being a key focus.

Unlike the recent announcement regarding the complete shutdown of Aviva Global LifeCare Health Insurance products, Nordic has stated that policyholders currently enrolled on an NHC Americas health insurance plan will still be able to renew their policies going forward, and that the plan will be serviced in accordance with existing policy terms.

This means that in contrast to Aviva, Nordic will not completely disable its NHC Americas business, but rather stop the sale of any NHC Americas products to new customers. As such, existing NHC Americas policyholders will be able to receive continuing coverage for any medical conditions they may have developed while on their health insurance plan.

The two companies, Aviva and Nordic, could not have handled the “shut down” of their respective plans in a more contrasting manner. Nordic, unlike Aviva, has shown its commitment to policyholders and has displayed its intent to provide high quality on-going services to members who may have developed serious medical conditions while enrolled on their health insurance plan. Aviva, on the other hand, has shown a complete disregard for the impact of its actions on its clients.

While the Aviva Global LifeCare plans may have been loss making for the company, the position they have placed themselves in by simply ceasing to operate these products could do major damage to the perception of “safeness” which IPMI policies offer on a global level. Facing a similar position, Nordic has elected to stand by its existing customers who may have otherwise faced a difficult proposition in obtaining continuing coverage for this region.

Nordic will not force policyholders off plans which are already in place. This key distinction over the manner in which Aviva is treating existing members is a major insight into the duality displayed by many major Global health insurance providers in the modern age. For the international insurance industry to grow, consumers must have trust in the company they are working with, in that the protection they are purchasing is often intended to provide their medical coverage for the rest of their life. While Aviva may have had a negative impact on the perceived trust levels clients have towards their insurer, Nordic has proven that at least some international insurance companies do care about the people they are protecting, and that these insurers are committed to protecting customers over the long haul.

At present it is still unclear why NHC has made this startling decision. Market Analysts suspect that one of the major contributing factors is due to the company’s Claims Ratio in the LatAm region; future claims development in Latin America for NHC was viewed by insiders as potentially unsustainable.

While the news will undoubtedly come as a blow for individuals in Latin American countries due to the high quality and coverage levels associated with the NHC Americas policy, the fact the Nordic remains committed to continuing service of existing customers will be welcomed by many.

Aviva Life Insurance Company Ltd, part of Aviva PLC, has announced to its brokers and agents in Hong Kong that the company will be cancelling its line of Aviva Global LifeCare products.

The Aviva Global LifeCare plan is an individual international private medical insurance policy licensed out of Hong Kong SAR.

In a recent communication to the Aviva distributor network in Hong Kong the company has stated that ”we have decided to discontinue any new business of our Aviva Global Lifecare products with immediate effect and also the renewal of all existing Aviva Global Lifecare policies.”

This means that any policyholders in possession of an Aviva Global LifeCare plan will be unable to renew their policy. However, until the plan reaches the renewal date, now the cancellation date, Aviva has confirmed that customers will be able to seek coverage under the plan.

This poses a grave concern for many individuals and families currently covered by the Aviva plan, as the cancellation will force them to seek alternative health insurance options. Any medical conditions developed by the policyholder while enrolled on the Aviva policy would subsequently be treated as Pre-Existing with any new health insurance application.

Pre-exsiting medical conditions are normally not eligible for coverage under an international health insurance policy.

As of the time of publishing, Aviva has offered no solutions for continuing coverage to Aviva policyholders currently suffering from severe chronic conditions whose plans will be cancelled. This means that individuals experiencing life threatening medical conditions, such as cancer, are now no longer to obtain coverage from a plan which they have been enrolled on for a number of years.

Additionally, many Aviva policyholders are finding that they have only just completed the waiting periods associated with coverage benefits such as Maternity, and are now being told that their policy is no longer being offered. These individuals must find new coverage and complete a new set of waiting periods before they are able to start their family with the protection they deserve.

A current Aviva policyholder, who did not wish to be named for this story, said of the cancellation:

“This is horrific; I’m absolutely outraged at the decision. This belies an utter lack of commitment to the customer and is, quite frankly, extremely disappointing from one of the world’s, supposedly, ‘premier’ insurance providers… How am I meant to get coverage now?”

Upon being asked if he had any pre-existing conditions which would require continuing coverage the policyholder stated:

“Yes, and it’s definitely a condition which will be excluded from my next plan – if I’m even accepted. The whole situation is verging on the criminal, in my opinion.”

One woman, asking to be called Mrs. S in this article, who had purchased the policy expressly for the maternity coverage said of the news that “this is insane! My husband and I were going to try to start a family this year…. We now have to wait another 10 months on a different policy before we can give birth? How can Aviva do this?!”

Aviva entered the international health insurance market with the Aviva LifeCare plan in 2007 and it is unknown at this moment why the company is choosing leave. Additionally, it is also unknown whether Aviva’s offerings in the United Kingdom or Singapore will be affected by this decision.

However, it should be noted that Aviva has had a history of extreme premium increases over the last 2 years with the LifeCare product, with average plan costs doubling for 2 consecutive years. This is unusual for Health insurance and may indicate a structural unsoundness at the core of the Aviva LifeCare business.

At this time International Insurance News recommends that any person holding an Aviva Global LifeCare Health Insurance policy should contact their agent, broker, or representative to establish continuing coverage options.

Aviva PLC, the United Kingdom’s largest insurer, has announced plans this week to enhance its critical illness cover package with the addition of partial payments for several newly covered medical conditions.

From October 17, 2011 onwards, all new Aviva critical illness customers will be eligible to claim partial insurance payments for two early forms of cancer: low grade prostate cancer and ductal carcinoma in situ (DCIS), which is an early form of breast cancer. If either of these conditions is realized, claimants can receive 20 percent of their sum assured, up to a £20,000 maximum cap, when they undergo cancer treatment.

Under their updated critical illness policy, Aviva will cover all forms of recognized surgical treatments for both low grade prostate cancer and DCIS. Aviva notes that this could prove particularly relevant for breast cancer patients with their assortment of treatment options. While two thirds of all breast cancer cases in the UK are treated by a lumpectomy (the removal of affected cancerous area), many competing critical illness policies from other insurers only cover mastectomy (removal of the whole breast), and this, Aviva feels, gives their product an important advantage in the market.

Aviva’s new partial payment scheme is an additional benefit, separate from the main policy, and thus a customer’s critical illness cover will remain to be in place if they need to make a fresh claim in the future. In addition to this new rider, Aviva has updated their critical illness cover on a number of other conditions, and had allowed customers to bring claims more quickly for medical issues like Multiple Sclerosis (MS).

Commenting on these upgrades, Robert Morrison, Chief Underwriter for Aviva said “These enhancements are great news for customers who can now benefit from more comprehensive cover. Cancer treatments can take a huge emotional and physical toll, so this extra financial support is there to provide peace of mind so patients can concentrate on getting well.”

Aviva paid out £62 million (US$99.8 million) on critical illness policies during the first six months of 2011, a 21 percent increase over last year’s corresponding first half totals. In September the company disclosed that 755 UK customers had made claims on critical illness cover between January and June and they had received an average payout of around £81,000 each (US$130,000). Aviva’s typical critical illness claimant was described as a 44 year-old woman or a 45 and three months old man and the most commonly claimed-for diseases were cancer (accounting for 65.9 percent of all claims), followed at a distance by heart attack (11.3 percent) and stroke (7.9 percent).

Aviva reported that 92.5 percent of all critical illness claims were settled during the first half of the year, bringing the insurer’s claims paid percentage over the past 12 months to an insurance industry high of 94.3 percent. It has become common for many British insurance providers to publish half year, as well as annual, claims statistics for their clients. Being able to consistently report a high claims ratio can be seen as a valuable promotion tool for a company, demonstrating an ability to consistently meet obligations to clients. Increasing transparency and claims efficiency will work to improve the image of the insurance industry as a whole in the UK. In 2010 Aviva paid out the highest proportion of critical illness claims across the country.

Insurance Companies Mentioned

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.

Aviva PLC, the United Kingdom’s largest insurer with over 19 million customers, reported this week that it had so far paid out £212 million (US$ 341.28 million) on its critical illness and life insurance policies in the first half of 2011. This equates to a settlement on 98 percent of all claims made during that period.

Many British insurance providers are now publishing half year, as well as annual, claims statistics for their customers. Being able to report a high claims ratio can be seen as a valuable promotion tool for a company, demonstrating an ability to consistently meet obligations to clients. Both increased transparency and payouts will also work to improve the image of the insurance industry as a whole in the UK. So far this year, Bright Grey, Scottish Provident and Zurich have published their claims statistics. Zurich have so far paid out 89 percent of critical illness claims (for a total of £43.7 million (US$67 million)) while Scottish Provident paid 91 percent and Bright Grey settled 90 percent of claims.

On critical illness policies, Aviva paid out £62 million (US$99.8 million) during the first six months of 2011, a 21 percent increase over last year’s corresponding first half totals. The company disclosed that 755 customers had made claims on critical illness cover between January and June and that they received an average payment of around £81,000 each (US$130,000). The typical critical illness claimant was described as a 44 year-old women or a 45 and three months old man and the most commonly claimed-for diseases were cancer (accounting for 65.9 percent of all claims), followed at a distance by heart attack (11.3 percent) and stroke (7.9 percent).

Aviva reported that 92.5 percent of all critical illness claims were settled during the first half of the year, lifting the insurer’s claims paid percentage over the past 12 months to a high of 94.3 percent. Of the remaining unsettled claims, Aviva’s statistics show that around 6 percent were denied for failing meeting policy criteria. Meanwhile, the number of critical illness claims rejected for reasons of non-disclosure during the January-June period fell to 1.5 percent, a result the insurer described as significant.

With regards their life insurance policies, the first six months of 2011 saw Aviva pay out £150 million (US$241 million) worth of claims to the beneficiaries of policyholders who had died or had become diagnosed with a terminal condition. The company was able to settle 99.7 percent of all claims resulting from death, a stat Aviva understood to be “unsurpassed within the industry.”

Robert Morrison, Chief Underwriter for Aviva, suggested that these claims totals should restore confidence amongst customers, assuring them that the company will continue to support them through difficult periods of their lives. The evidence shows that in fact the vast majority of claims are settled quickly and only a few turned down for reasons of non-disclosure or from not meeting with certain policy criteria. “At Aviva we believe it is crucial we pay every claim we can. While unfortunately across the industry there are a small number of claims insurers are unable to pay…these latest figures should help to reassure customers that we are there to help them when it matters most.”

Mr. Morrison added that Aviva would remain committed to improving and developing new mechanisms to address critical illness claims. This month, the insurer introduced a new electronic group risk claims process designed to make it easier and more efficient for group risk customers to submit claims in the immediate aftermath of a policyholder death. Aviva also plan to add coverage extensions to its international private medical insurance products to better meet the needs of their expanding base of international clients. The additions come as a result of a recent research paper, conducted by Aviva, that revealed that over a third of all UK businesses worry about how they would manage if an employee was involved in an unforeseen accident while traveling abroad. “We would like to see critical illness claims figures rise even higher across the industry and at Aviva we are constantly reviewing how we work with our customers and advisers to assist them from the point of purchase. This way they can be confident that should the unexpected happen and they need to make a claim, we can help provide the financial support they require so they can concentrate on more important matters”, Mr. Morrison concluded.

The number of successful critical illness claims in the United Kingdom is increasing as insurers succumb to increased public and regulatory pressure to settle as many policies as possible. New data published by the Association of British Insurers (ABI) this month has shown that £1.9 billion (US$3.06 billion) was paid out in 2010 by insurance companies to claimants, up from £1.8 billion (US$2.9 billion) the previous year, with £1.14 billion (US$1.84 billion) coming through life insurance and £776 million (US$1.2 billion) spent on critical illness claims. According to the ABI, More than 40,000 British families and individuals received a claim payment last year, with an average settlement of £47,166 (US$75,533)(almost double the average UK salary).

The British insurance industry has taken action to better inform and educate customers about the details of their policies so that fewer claims are turned down in the aftermath of a critical illness or bereavement. In 2008, the ABI issued a public guidance on insurance claims, which increased transparency and ensured customers who applied for life insurance would not be penalized for accidental non-disclosure of medical information. This occurred amid a public backlash after the proportion of rejected claims reached a high of 16 percent in 2007. The ABI soon began introducing standard definitions for many of the more common conditions on contentious critical illness policies. Since the guidelines have been implemented, customers have developed a deeper understanding of their policies, reducing the number of claims turned down, and thus the number of complaints leveled at long-term insurers in the UK has reportedly fallen by over 50 percent. Both the insurance companies and clients have realized the importance of improved transparency and efficient payouts when settling critical illness and life insurance policies.

Organizations Mentioned

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.

Association of British Insurers

The ABI (Association of British Insurers) represents the collective interests of the UK’s insurance industry. The Association speaks out on issues of common interest; helps to inform and participate in debates on public policy issues; and also acts as an advocate for high standards of customer service in the insurance industry. Every day, ABI members pay out an estimated £155 million in benefits to pensioners and around £58 million in general insurance claims.

Morgan Price International Healthcare has become the latest international private medical insurance provider to respond to rising broker demand and offer full medical underwriting options for individual policyholders.

Morgan Price International Healthcare (Morgan Price) was established in 1999 to offer specialist international health insurance to expatriates working all over the world. Depending on location, Morgan Price plans are underwritten by Europ Assistance Holdings Irish Branch or Generali Worldwide Insurance Company Limited.

Full medical underwriting (FMU) options are now available through Morgan Price’s individual GlobalHealth and ExpatHealth insurance plans. These updates are the result of ongoing product development meetings with participating reinsurers as well as extensive feedback on expatriate health policy from the global intermediary market.

The announcement follows Aviva PLC’s plans, released earlier this month, to upgrade its international private medical insurance products to better meet the needs of their expanding base of international clients. Aviva’s ‘International Solutions’ modular private health insurance products now offer flexible coverage options to handle the large discrepancies in cost and quality of healthcare available when living overseas. A recent study conducted by Aviva confirmed that medical coverage issues continue to be a key concern in customers’ travel planning.

Most international private medical insurance underwriters have historically sided against providing medical cover for pre-existing conditions because expatriate clients usually will not have access to or the support of the state healthcare system in their new country of residence and employment to fall back on. While group coverage schemes above a certain size can often be underwritten irregardless of a particular group member’s medical history, individuals with pre-existing conditions have been left with few options when looking for coverage, either a policy with those conditions excluded altogether or one which is accepted but only on a moratorium basis.

Morgan Price is now one of a number of international private health insurance providers to offer comprehensive underwriting options. Last year, Bupa International announced plans to offer a similar service, initially through its direct sales channel and then on to licensed intermediaries. Other companies that feature full medical underwriting include DKV Globality and IHI Bupa, the Danish subsidiary Bupa acquired in 2005.

Speaking at the launch of Morgan Price’s full medical underwriting options, Jon Carpenter, Managing Director of Morgan Price, detailed how policyholders would be able to access the new service. Morgan Price customers will fill out a medical declaration (either online or in print), which will either result in coverage being confirmed at the normal terms or with the inclusion of a modified benefit or exclusion policy rider. The whole analytical underwriting process is expected to take no more than 1 working day in the majority of cases and “only a little longer” when auxiliary medical information is required.

According to Mr. Carpenter, the addition of full medical underwriting options will provide Morgan Price customers with “much greater certainty” about limits on coverage for any pre-existing conditions at the onset of the policy rather than at the critical claims stage.

Mr. Carpenter further stated that the move to implement more inclusive actuarial processes was a necessary development for Morgan Price. “Moratorium underwriting has worked well for us over the past 10 years, but in these days of greater clarity and transparency in all insurance matters FMU seemed like a natural progression,” he said, adding that the conventional practice for the entire expatriate health insurance industry may need to evolve. “Traditionally individual international business has been sold via the moratorium route as it is an immediate sell, but increasingly this is causing issues at the back end where customers expect fast claims turnarounds and payments. If a moratorium policy is being administered properly, then claims stage investigation is common, and this inevitably delays processing and payments while you track back through an expatriate’s medical history.”

“Underwriting up front might take a little longer but the benefits are in the claims process,” Mr. Carpenter concluded.

Insurance Companies Mentioned

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.

Morgan Price

Morgan Price is a UK-based specialist international and expatriate health insurance provider for clients around the world with special focus on the Middle East. The company was founded in 1999 as a managing general agent who acts on behalf of international insurers in product design, administration, premium collection and claims handling.

On May 4th 2011, Aviva PLC, the world’s sixth largest insurance group, announced an array of benefit enhancements to further improve upon their award-winning international private medical insurance services.

To better meet the needs of their expanding base of international clients, Aviva has been upgrading its international private medical insurance products. Aviva’s ‘International Solutions’ modular private health insurance products have been specifically designed to cover globally-mobile people who are living and working outside their country of nationality, such as expatriates. The policies offer flexible coverage options to handle the large discrepancies in cost and quality of healthcare available when living overseas. A recent study conducted by Aviva concluded that medical coverage issues have remained a key concern in customers’ travel planning.

Under the company’s new updates, International Solutions will raise the overall core benefit limit from £1.5 to £5 million (US$2.4 to US$8.2 million) and the previous newborn lifetime cover of £20,000 (US$33,000) for 112 days will improve fivefold to £100,000 (US$165,000) for 112 days. Routine chronic cover annual benefit has been further doubled from £7,500 (US$12,400) to £15,000 (US$25,000), while the medical practitioner annual benefit limit has been increased from £1,500 (US$2,480) to £2,500 (US$4,130).

In addition to raising the limits of their international offerings, Aviva has transferred a number of benefits from its supplementary cover options into the core cover for International Solutions products. This includes coverage for vaccinations, which had previously only been available to customers purchasing the Wellness Option module. There is also now an option to remove compulsory per claim excess on individual insurance policies.

Several of Aviva’s optional benefit packages have also been updated. The maternity option benefit cap has been lifted from £7,500 (US$12,400) to £10,000 (US$16,500) and there is now an increased annual compensation limit for consultations with a specialist, diagnostic tests and specialist-referred surgical procedures and physiotherapy, rising from £1,000 (US$1,650) to £2,500 (US$4,130). Improvements have also been made to dental and optical services, as well as increased out-patient service options for both individual and corporate International Solutions insurance policies.

To complement International Solutions’ coverage enhancements, Aviva has added a StandbyMD medical consultation service. This exclusive arrangement grants Aviva customers 24 hour access to a physician offering medical support and advice. The healthcare concierge service is available through 4,000 cities, across 86 different countries worldwide. StandbyMD provides international health insurance customers with prompt telephone access to a qualified physician. Policyholders can also elect to arrange face-to-face consultations or home visits.

Additionally, a new repatriation benefit rider has been developed for expatriate customers with the compassionate travel option, which will enable policyholders to return to their home country (or country of nominated residence) if certain medical treatment is not available locally. If a policyholder possessing the benefit is evacuated, Aviva will now provide compensation for someone to accompany them on their journey, even if the individual in question does not possess an Aviva international health insurance policy.

For expatriate clients, Aviva has introduced a new electronic service which will enable customers to keep important health records and allow prompt access to said vital information while abroad. The Aviva ‘My Health Passport’ is available through two different formats: a small software version used to store practical information such as personal details and GP and insurance contact information, and a printed booklet which covers more comprehensive health information.

Aviva has set up a new provider network in the United States through a partnership with Miami-based Olympus Managed Healthcare. This arrangement incorporates an additional 6,000 hospitals, over half a million doctors and 57,000 pharmacies into Aviva’s health provider network across the US. Aviva policyholders will be able to locate a qualified American doctor or hospital through the comprehensive online network. If customers choose to go within the health provider network they will have their bills settled directly by Aviva, removing the need for individuals to handle costly medical bills themselves.

Olympus Managed Healthcare are market leaders in claims management, handling over 125,000 claims a year on average. Aviva believes that this joint venture will provide customers with additional security, dedicated support and improved access to healthcare in the United States.

Teresa Rogers, international business lead of Aviva UK Health, commented on the inception of International Solutions policy updates: “By listening to our intermediaries and customers, we’ve been able to focus on improving the right things. We’ve enhanced the benefits and support that our customers tell us are most important to them. This not only includes increasing monetary limits, but also adding expert support services such StandByMD to further improve the peace of mind our customers receive from their policy.”

All new benefits will become available from July 2011 for both new customers and existing policyholders looking to renew their International Solutions service.

Aviva has been very proactive in expanding and upgrading its operations to attract more potential clients worldwide. Aviva has established a presence in many of the increasingly lucrative Asian insurance markets through joint ventures with locally based insurance companies in order to capitalize on the rising demand for insurance products and services in the region. The company has been able to maintain growth across key markets and will look to further improve upon its level of service to sustain strong performance through 2011.

Insurance Company Mentioned

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.

Olympus Managed Healthcare

Olympus Managed Healthcare offers medical claims administration and cost containment services in the international marketplace. The company also provides third party administrator, call center, and consultations services, as well as other specialty programs. Olympus Managed Healthcare operates through a network of doctors and hospitals around the world. The company was founded in 1994 and is based in Miami, Florida.

Standby MD

StandbyMD is a healthcare concierge service that provides insured persons with personalized physician oriented access to healthcare services 24 hours a day, seven days a week and includes an assortment of both hands-on and referral based medical solutions.

A new study conducted by Great Britain’s second largest insurer, Aviva PLC, reveals interesting developments on the changing attitudes of British workers when considering possible emigration from the UK.

The study, facilitated by market researchers OnePoll, surveyed 1,000 British employees nationwide aged 18 to 45 from 31 March to 5 April 2011, and found that over half (54%) of respondents would now contemplate leaving the United Kingdom and moving abroad.

While short respites outside of the UK have become more common, Aviva was surprised by the number of people contemplating better long-term prospects outside the country. Almost half (46%) of the respondents would consider a permanent move abroad compared to only 39 percent of those surveyed last year. One in five polled (21%) indicated however, that they would remain more cautious and only be prepared to move overseas for between one to three years.

The unconvincing forecast for the British economy has been the primary factor in the growth of these figures. Aviva’s survey discovered that 89 percent of respondents believed that the UK job market has been in perpetual decline for the last 3 years. More than half (54%) further admitted that government cuts have had a negative impact on their standard of living. Many of those surveyed claimed that the current culture of austerity and cost-cutting initiatives in Britain were now playing a key role in driving them to consider a move abroad.

More traditional reasons for emigration from Britain were also represented in the report. Almost half (45%) of respondents indicated that they were motivated to move abroad in pursuit of a better year-round climate. A further third of those polled (31%) believed that a move overseas could offer a healthier, less demanding and more varied lifestyle, with a better balance of work and family time available.

Aviva’s research showed that the same five countries first identified in the company’s 2010 study remained the principal re-location destinations of choice: Australia, Canada, Spain, New Zealand and the US. Other countries mentioned as popular destinations included: France, Germany, Italy, Switzerland and the UAE.

Addressing the UK study, Teresa Rogers, business lead for international private medical insurance at Aviva, said: “When times are tough, it might seem natural to set one’s sights on moving abroad. But our survey shows that there are certainly pros and cons to moving and people need to plan carefully if they are considering making their dream a reality.”

Indeed, the research highlighted that a quarter (25%) of British respondents worried that they might have worse benefits if they moved out of the country. More than a third (37%) acknowledged that they may have fewer state-funded privileges in their new foreign location.

Mrs. Rogers further highlighted that uncertainty regarding quality of medical service in a new country remained a chief going concern for expatriates. “Health is clearly a primary concern for people and whether you’re thinking of moving abroad for a short time or on a more permanent basis you need to take care to ensure you and your family are always properly protected,” she added.

Healthcare has been an increasing concern for Britons when considering a move abroad. Almost half (46%) of those polled believe the UK has superior health benefits to other countries worldwide. Over a third of respondents claimed the National Health Service (NHS) would be one of the British institutions they would miss the most if they left. This is an increase on last year’s results which indicated only a quarter (25%) felt the same way about the NHS.

Speaking for Aviva, Mrs. Rogers understood British concerns with regard to foreign healthcare services: “Healthcare provision varies greatly around the world and even routine medical care can prove costly in countries that don’t offer a similar service to the NHS.”

Anxiety about medical services overseas, prompted six in ten (59%) responders to declare that they would factor heath insurance into their travel planning. In contrast, 38 percent of those polled, claimed they would not arrange any sort of health insurance prior to moving.

Mrs. Rogers summarized Aviva’s assessment of these figures: “Although it’s very encouraging that over half of the people we spoke to would consider taking out international health insurance, over a third (39%) would sort their health insurance out only once they’ve arrived,” she said, adding, “this could leave them in a difficult position should the worst happen.”

To better meet the needs of their expanding base of globally mobile clients, Aviva has been upgrading its international private medical insurance products. These upgrades range from structural adjustments in the application and claims handling processes to minor changes in global group coverage policies.

Aviva has also been very proactive in expanding its operations to attract more potential clients worldwide. The company has established a presence in many of the increasingly lucrative Asian insurance markets through joint ventures with locally based insurance companies in order to capitalize on the rising demand for insurance products and services in the region.

In Asia, Aviva currently operates out of China, India, Malaysia, Sri Lanka, Singapore and Hong Kong, and recently agreed to acquire a 60 percentage stake in Asuransi Winterthur Life of Indonesia. Although Aviva has announced its intentions to pull out of its joint venture with First Financial in Taiwan, pending regulatory approval, the company remains otherwise committed to concentrating on both the Indian and Chinese key markets in the Asia-Pacific region and it’s well established client base in Western Europe and North America.

Insurance Company Mentioned

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.

Britain’s second largest insurer Aviva has reported sound results for 2010, with a 33 percent jump in net profit to reach £1.46 billion (US$2.33 billion). This compares with results in 2009 when a profit level of £1.1 billion (US$1.76 billion) was achieved. Aviva also highlights plans for an overhaul of global operations during 2011.

Aviva’s pre-tax profits came in at £2.44 billion (US$3.90 billion) for 2010 – a significant year-on-year improvement of 35 percent – when a corresponding pre-tax profit of £1.8 billion (US$2.88 billion) was reported. Operating profit strengthened in 2010 to £2.55 billion (US$4.08 billion) an uplift from £2.02 billion (US$3.23 billion) in 2009 reflecting a 26 percent rise.

New written business in the UK, Europe, North America and Asia contributed to the Aviva’s groups profits, with double-digit growth recorded across the network.

There were strong sales in Aviva’s life and pension sectors, along with growth in the general and health insurance businesses. Aviva’s life and pension sales increased by 4.2 percent to reach £33.36 billion (US$53.37 billion), while sales activity in the general insurance and healthcare business were up by 6 percent to total 9.7 billion (US$15.52 billion) in 2010.

Last year, Aviva announced that steps had been taken to save £400 million (US$640 million) in group costs in order to make the global insurer even more efficient to help long term growth.

Andrew Moss, Aviva’s Chief Executive said: “Over the last few years, we’ve grown the business, significantly reduced costs and strengthened the balance sheet. As a result, we’ve created a good platform for the next phase of growth.”

In reporting, Aviva highlighted future plans for growth which will see the insurer focusing on 12 core markets earmarked for investment in a bid to strengthen the group’s market position. Aviva said it will concentrate more closely on its most profitable markets while potentially departing from some non-essential market sectors which have been delivering lower levels of financial return.

The revamping of Aviva’s operations will take place over the next 12 months, but no specific details were given on the extent of the restructuring programme.

Part of Aviva’s future plan is to focus on the UK and European savings and pensions market, where the insurer expects significant growth in demand over the next few years. The UK and European savings market is one of the largest in the world with potential growth expected to generate a total market demand reaching £1.05 trillion (US$1.7 trillion) by 2014; this position has been established by research conducted by Aviva last year. Aviva’s study found that European citizens need to save an additional £2 trillion (US$3.3 trillion) annually to fully close the pension gap for people retiring between 2011 and 2051.

While some rival insurers have shied away from western European life and non-life insurance markets – preferring to concentrate on the higher growth markets in Asia and Latin America – Aviva sees great potential from the need to recover the shortfall in the savings and pension market in the European region. The pressure on corporate funding for pensions over a number of years, and the increasing awareness that private pensions will be required to supplement the value of state pensions, has created a huge pensions and savings gap creating a demand for long term investment and saving products.

Aviva has built a strong reputation in the insurance market within Europe and has significant brand awareness. Optimizing its position in the life and pension market in Europe is, therefore, key for the insurer to bolster future growth. Although the European region has seen a slow recovery from the global financial crisis which arose in 2007-2008, there is evidence that key industries have strengthened, with high demand for insurance products in emerging markets such as Turkey.

In the relatively static market prevailing in North America, Aviva was able to grow its business in 2010, with the operating profit totaling £376 million (US$601.6 million) reflecting a 77 percent increase year-on-year. The growth in Aviva’s North American operation was down to stronger pricing and underwriting management, within a slowly improving economic environment.

Meanwhile in the thriving Asia-Pacific region, Aviva is continuing with its strategic goal of increasing its presence and improving its market position. The British insurer is growing through organic processes and extending franchising, while investing in key sectors to capitalize on the rapidly expanding economies and demand for saving and protection products in the region.

In China and India, Aviva saw their market position strengthen, with the insurer experiencing a significant increase in new business. Meanwhile, in the mature Asian market of Singapore, Aviva’s local operation on the island also demonstrated growth in business during 2010.

Aviva intensified operations in China and India during 2010 and has made the two economic powerhouse countries priority targets for market growth due to the rapidly expanding number of people in the middle class sector, with increasing wealth driving demand for insurance products. Overall Aviva’s sales in China increased by 28 percent and in India sales jumped by 22 percent.

Aviva has been able to deliver improved profit figures for 2010 due to the implementation of cost management actions, coupled with positive sales growth across key markets in the UK, Europe, North America and Asia. The overall profit increase was generated in a tough market climate, but Aviva intends to focus on core markets in 2011 with plans to inject capital in order to enable the company to augment its already strong market position.

Insurance Company Mentioned:

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.

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.

A number of Mergers and Acquisitions (M&As) between insurance companies have been implemented during 2010 in a bid to strengthen business activities in both mature and emerging markets. These developments have taken place as insurers strive to capture an increase in profitable markets and penetrate new markets to capitalize on shifting global demands.

The M&As implemented are planned to facilitate improvements in the quality and range of services which can be provided to clients, together with uplifting profit margins and share values for companies as rationalization processes are implemented.

An appetite for mergers and acquisitions within the global insurance industry has been re-activated in the last 18 months. These activities have occurred in the wake of the global financial crisis – which started in 2007/2008; the financial crisis originating in the USA with a knock-on impact worldwide.

With the economies in the western hemisphere still feeling the effect of financial instability into late 2010, growth has been focused on Asia, Latin American and the Middle East as these regions have emerged more quickly out of recession than the established markets in North America and Western Europe. Asia – particularly China and India – has become pivotal for the insurance industry offsetting lacklustre returns from established markets.

While the USA and Western European countries are suffering from the impact of austerity measures, the major reforms of state provided healthcare services proposed in these major nations could be beneficial for private sector insurers. There is an expectation that populations may switch to private insurance in bigger numbers as standards and waiting times worsen in public sector provision. The out-sourcing of state funded medical treatments and procedures to private facilities with spare capacity may also be adopted as a more cost effective process in countries such as the United Kingdom.

Additionally opportunities for private insurers in western hemisphere countries could emerge from an attempt to rectify a estimated shortfall amounting to trillions of dollars in the pension and savings sectors in these nations; this deficit has been building up over many years and will need to be satisfied.

In the emerging markets of Asia and Latin America, the increasing wealth of the large populations has resulted in a demand for a broad range of insurance products. Insurance companies are poised to penetrate the market for micro-insurance, which is estimated to be worth some US$ 40 billion (£26 billion:€30 billion) of new premium business. A report issued by Swiss Reinsurance in December 2010 highlighted the potential demand for microinsurance primarily for low income populations in Asia, Latin America and Africa countries; the fledgling market being assessed at 4 billion policies covering a diverse range of products – 2.6 billion for people living on US$1.25 to US$4 a day plus the capability of a further 1.4 billion policies with the help of financial support from governments and international aid agencies.

Another niche market ready for expansion covers the development of takaful insurance primarily to populations in Islamic countries. This is based on the issue of mutually beneficial protection policies distinctly geared to markets in Middle Eastern and Asian countries.

Recent mergers and acquisitions in the insurance industry indicate that the combination of multi-national and local insurers is well placed to take advantage of these opportunities:

* Resolution Ltd is set to acquire Bupa’s Health Assurance business in a US$164 million (£102 million:€ 122 million) deal. As part of Resolution Ltd’s strategy to build a substantial share of the UK life insurance market, the company has reached an agreement with Bupa to acquire its life, income and critical illness insurance business. This enhances the previous acquisitions by the Clive Cowdrey formed company – Resolution Ltd – and follows the purchase of Friends Provident in 2009 for US$3.04 billion (£1.9 billion:€ 2.28 billion), and the US$4.4 billion (£2.75 billion:€ 3.3 billion) acquisition of AXA’s UK life assurance and savings arm earlier this year.

* UK based multinational insurance company Aviva plc has recently entered into an agreement with PT Asuransi Wahana Tata to purchase a 60% share of PT Asuransi Winterthur Life Indonesia (WLI). This is the first time Aviva has entered the Indonesian insurance market. Once the deal is finalized and Indonesian regulatory approval is given for the venture, Winterthur Life will be renamed PT Asuransi Aviva Indonesia. Aviva also operates in China, Hong Kong, India, Korea, Sri Lanka, Singapore, Taiwan, Malaysia and Australia.PT Asuransi Winterthur Life Indonesia is one of Indonesia’s top three health insurance providers and holds gross assets of approximately US$22.7 million (£14.5 million:€17.2 million), managing pension funds valued at US$63 million (£40 million:€48 million).

* The second largest insurance company in China, the Ping An Insurance Group Company (PAIGC) has joined with equity investment firm Newbridge Asia exchanging shares held by PAIGC with those held by Newbridge in the Shenzhen Development Bank.

* The inauguration of MaxBupa in February 2010 covered the joint venture between local Indian insurer Max India and global insurer and major healthcare provider Bupa, with an initial network of offices in six major metropolitan areas – Delhi, Mumbai, Bangalore, Hyderabad, Pune and Chennai.

* China Everbright formed a joint venture with Canadian owned Sun Life in 2002 resulting in a new company – Sun Life Everbright. The partnership generated 18 offices within China. A restructuring of Sun Life Everbright was approved in 2010 enabling additional investors to buy shares in the joint venture, which will ultimately turn the company into a wholly owned Chinese entity, although Canadian based Sun Life will continue to provide management and actuarial services.

* BNP Paribas entered into a joint venture with the Taiwan Cooperative Bank in April 2010 – split 49%, 51% respectively – in order to sell a diverse selection of life insurance products. The joint venture, named BNP Paribas Assurance TCB Life Insurance Co, uses the bank’s 300 outlets to distribute policies to clients in the difficult Taiwanese insurance market.

* In Malayasia, the Singapore listed company Great Eastern Holdings has acquired the Tahan Insurance Company in a transaction amounting to US$ 4.7 million (£3.3 million: €3.5 million); the takeover being completed by Great Eastern Holdings wholly owned Malaysia insurance company, Overseas Assurance Corporation Malaysia (OACM).

* The Danish Investment Bank FIH Erhvervsbank (FIH) has been taken-over by a consortium involving Danish based pension company ATP, PFA Pension, CPDyvig and Swedish insurer Folksam; the deal worth US$879 million (£567 million: €670 million) relieving FIH of liabilities incurred by its previous takeover of failed Icelandic bank Kaupthing.

* London based insurance company, Brit Insurance, is recommending acceptance of an offer by private equity groups Apollo Global Management and CVC Capital Partners Ltd, which would conclude an acquisition proposal under discussion since June this year. Brit Insurance – which specializes in the major insurance and reinsurance business – has decided to recommend to its shareholders acceptance of an approach by Apollo Management and CVC Capital Partners. The bid is valued at US$1.3 billion (£850 million:€900 million), with the potential for a further 2.3% increase in value if certain targets are achieved.

*.Prudential Financial Incorporated, one of American’s largest life insurance company, raised US$2 billion (£1.3 billion:€1.45 billion.) through the sale of over 18.3 million shares of Prudential Financial common stock, together with public offering of senior notes to help fund the purchase of AIG Star Life Insurance Co and AIG Edison Life Insurance Co from its American rival AIG. The acquisition of the two Japan-based insurers increased Prudential Financial reach across the world’s third largest economy.

* The German based major insurer Allianz took control of Allianz Seguros its Brazilian subsidiary in January 2010, when it purchased the remaining 14 percent of the company from Ita’u Unibanco. The acquisition will provide Allianz with access to gross written premiums of approximately US$905 million ((£584 million:€689 million) per year primarily in the Brazilian property and casualty insurance markets.

*The private equity fund manager Horizon Capital has agreed the purchase of Fortis Life Insurance Ukraine, with Belgian based Ageas Insurance International. The transaction fits with Ageas continuing their portfolio restructuring and follows the sale of their Turkish life & pensions business to the insurance unit of France’s BNP Paribas in June 2010.

*The 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 US$ 6.4 billion (£4.1 billion:€4.8 billion) up from US$ 5.05 billion (£5.9 billion:€3.8 billion) in the previous year.

*Zurich Insurance Co. Ltd., a subsidiary of Zurich Financial Services AG, the Swiss insurer, announced the acquisition of Compagnie Libanaise D’Assurances (CLA), a privately-owned Lebanese insurance company founded in 1951, with branches in the United Arab Emirates, Kuwait and Oman. The Zurich Financial Services Group also announced that it has entered into an agreement with its Spanish partners Unnim to sell them its 50 percent stake in their Spanish joint venture life and general insurance operation. Zurich’s decision to sell its equal stake in the Spanish insurance venture follows the merger between Caixa Sabadell, Caixa Terrassa and Caixa Manlieu in July 2010 to form Caixa d’Estalvis Unió de Caixes de Manlleu, Sabadell i Terrassa – also known as Unnim.

The financial industry is predicting a growth in business mergers and acquisitions during 2011 as companies emerge from the 2007 – 2008 global financial tsunami, with cash reserves available for new transactions. The insurance industry is expected to continue to be involved in these initiatives.

Companies Mentioned:

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.

Bupa

Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading multinational healthcare insurance company, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

Prudential Financial Inc

Prudential Financial Inc. is a financial services leader, with approximately US$750 billion of assets under management as at September 2010. Prudential Financial operates in the United States, Europe, Latin American and Asia, with approximately 42,000 employees worldwide

AIG

The American International Group is a leading multinational insurance company with operations in more than 130 countries and jurisdictions globally.

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.

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.

Ageas

Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. They are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia. It is an undisputed leader in the Belgian market for individual life and employee benefits, as well as a leading non-life player, through AG Insurance. Internationally Ageas has a strong presence in the UK, where it is the third largest player in private car insurance. The company also has subsidiaries in France, Germany, Turkey, Ukraine and Hong Kong. Ageas has a track record in developing partnerships with strong financial institutions and key distributors in different markets around the world and successfully operates partnerships in Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand.

Swiss Re

Swiss Reinsurance Company Ltd was established in 1863 and is present in more than 20 countries. Swiss Re provides reinsurance products and financial service solutions. It offers various reinsurance products covering property, casualty, life, health and special lines – such as agricultural, aviation, space, engineering, HMO reinsurance, marine, nuclear energy, and special risks.

Following the British’s government’s announcement that it will be embarking on major reforms and an overhaul of its long established National Health Services (NHS), the country’s independent body responsible for ensuring fair competition is maintained – the Office of Fair Trading (OFT) – has announced it will investigate the private healthcare sector in the country.

The formal investigation by the OFT will commence in Spring 2011 and will examine the nature of competition and barriers to entry affecting the private healthcare market in the UK; a market which is worth some £5.5 billion (US$8.5 billion) a year. The private healthcare market in the UK is set to grow in importance, with the impact of changes to the NHS emerging in the period between 2011 and 2015. The healthcare industry in the UK is also being stretched due to the needs of an ageing population and higher life expectancy levels.

The UK is a country where the majority of the population are only used to paying a basic contribution from earned income for medical treatment, which entitles a patient to treatment through the NHS for any ailment or procedure required. The purchase of private healthcare is a discretionary option primarily available to the more affluent element of the population or for employees of companies through corporate schemes; the NHS is itself a significant user of private healthcare facilities. However, following the government’s decision to overhaul the public healthcare system, the private medical market has come under the spotlight with the expectation that it will play an increasingly important role in the provision of healthcare services in the UK.

The OFT investigation will focus of the level of competition in the private healthcare market in the UK at national, regional and local levels and the possible restrictions on companies seeking to enter the market or expand within the market thus preventing the market from developing.

A fundamental issue to be investigated by the OFT concerns the application of network agreements between private medical insurers and private healthcare providers in the UK. This has lead to patient referrals being limited to a selected number of independent hospitals in the UK, although, the argument in favor of this approach, is that it minimizes costs by higher utilization of selected facilities. The other concern is that some smaller healthcare providers not in network agreements are being disadvantaged.

A contention is that if the UK healthcare sector opens up with more players entering the market, Private Medical Insurance (PMI) coverage will expand and be able to offer the British public lower costs for private healthcare.

The benefits of PMI compared with treatment under the NHS are that policyholders are able to get treatment more quickly with a choice of private high quality medical facilities.

A separate issue concerns the general purchase of private medical insurance. In the USA healthcare is exceptionally expensive with a local PMI policy being critical for patients to meet medical costs. The NHS reforms in the UK are not expected to result in a USA style healthcare system, however, similarities could arise with PMI and private health coverage being adopted on a more individual basis.

When comparing local and international PMI the difference in the scope of medical coverage is considerable, with international policies being more flexible. Local policies will often have more restrictions attached to the policy such as age limits set at 65, annual limitations on claims, higher medical exclusions, more pre-existing medical condition exclusions, geographical limitations and limited healthcare provider availability. Also, current policyholders of a local PMI policy may be barred from renewing cover if an insurer feels the client has become high risk.

The alternative to a local PMI policy is an international policy which will have a more comprehensive range of cover provided for policyholders. Although the premiums are higher compared to local PMI policies, fewer exclusions will apply and pre-existing conditions can normally be included for an additional premium. There is also likely to be a larger network of hospitals and medical centres available to policyholders, along with a wider variety of treatment options and maximum policy limits. International medical policies are also transferable around the world, including the USA if necessary.

There will be a difference in the calculation of renewal premiums between local and international PMI, with local PMI policies’ renewal premium usually based on the previous year’s claims made by a client, while international policies are normally renewed on a community rated basis. The benefit of the renewal criteria on a community basis is that premiums will allow for worldwide cover rather than a specific country.

If there are changes within the UK healthcare market it could lead to PMI becoming more affordable at a local level in the UK. Currently PMI obtained in the UK is predominately to supplement healthcare services or medications which are not covered by the NHS. Currently PMI in the UK is dominated by Bupa, Aviva, PruHealth and AXA PPP.

The benefits of PMI is that it provides the policyholder the ability to avail themselves of treatment for acute medical conditions, private healthcare services, surgery and in / out-patient services, including dental and optical treatments if specified. A comprehensive PMI will offer the policyholder a wide variety of healthcare cover, although the insured does have options to tailor the policy to their specific needs, with optional levels of excess payments. The network of private healthcare facilities will speed up patients’ waiting times, particularly in circumstances such as surgical procedures, compared to the use of the NHS system.

A key factor in choosing a private medical insurer is that the cheapest rarely offers the best value for money.

Insurance Companies Mentioned:

Bupa

Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

AXA PPP

Originally known as PPP Insurance, the company became part of the Global AXA Group in 1999 and changed its name to AXA PPP in 2002. AXA PPP is now an international health insurance company with over 2 million customers around the world.

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.

PruHealth

PruHealth is part of a joint venture named Prudential Health Holdings Limited, between Prudential Assurance Company of the UK and Discovery Holdings. The joint venture was started in 2004 and offers private medical insurance in the United Kingdom. Currently Discovery Holdings owns a 75 percent stake in the joint venture while Prudential Assurance holds the remaining 25 percent.

Insurance giant AXA SA highlighted its 5 year strategy for growth at their autumn investor seminar held in Paris on the 16th of November 2010. The French insurer AXA gave investors a preview of plans to expand operations in emerging markets and to concentrate on high-margin protection policies to ensure future growth.

As one of Europe’s largest insurers, AXA’s strategic plan is to make the company more efficient by creating international growth. Part of the five year action plan proposed by AXA is to review the way the group manages its operational capital to facilitate and accelerate long term values.

“We want to implement a more aggressive allocation of capital towards emerging markets and towards specific segments, such as protection and health. We want also to increase our focus on free cash flow generation.” Henri de Castries, Chairman and CEO of AXA said at the investor seminar.

AXA aims to increase the amount of premiums generated through its protection and health business in the coming years by growing new business sales. AXA stated that the protection and health business typically returns a 40 percent profit margin compared to its life insurance sector which generates around a 20 percent return. Additionally, AXA see scope for opportunities in the investment and saving segment, alongside possibilities open in the property and casualty sectors.

The increasing activities within continental Europe’s investment and saving business was specifically mentioned, highlighting the opportunities present in satisfying European pension shortfalls which are estimated at US$2.6 trillion (€1.9 trillion). AXA’s British-based insurance rival Aviva has recently stated that it will also be engaged within continental Europe in order to take advantage of future saving needs in this insurance sector.

Emerging markets – especially in the Asian region – have become a focal point for global insurers recognizing the financial stability now being enjoyed in this part of the world, with AXA consolidating its position in China through a deal struck with ICBC to acquire a majority stake in the French insurer’s joint venture AXA-Minimetals. The strength of the Asian market has become even more apparent over the last few years as China’s economy has evolved to become the second largest in the world, with other Asian countries also experiencing economical prosperity in the wake of the financial crisis. The Asian region has emerged from the 2007 world financial crisis largely unscathed – compared to Western Europe and the USA – leading international insurers to grasp opportunities for corporate growth – particularly as the more established, mature insurance markets have offered multi-national insurers less scope for new premium returns.

As part of AXA’s focus on expansion in Asian markets, it has launched a joint bid with Australian financial services group AMP for AXA Asian Pacific Holdings Ltd; this amounts to approximately US$13.1 billion (€9.7 billion). If the takeover of AXA Asian Pacific Holdings Ltd is successful, AMP will acquire the Australia and New Zealand operations, with AXA SA taking control of all Asian networks.

If the French insurer’s bid is completed, it will result in their increased presence in nascent Asian insurance market such as China, India, Thailand, Indonesia and the Philippines. Also, AXA will gain increased access to the mature Singapore and Hong Kong markets, which have been generating profitable returns for insurers as the markets stabilize. The insurance markets in China and India offer insurers such as AXA fantastic opportunities to expand and increase revenue due to the vast and increasingly wealthy populations in these countries.

Along with the two economic powerhouses of China and India, Vietnam, Thailand, Indonesia and the Philippines have all shown growth and an appetite for insurance products in recent years. This has caused insurers such as AXA to prioritize efforts in the Asian insurance industry as established markets in the USA and Western Europe have suffered from more difficult trading conditions after the 2007-2008 financial crises.

An ambitious but failed bid by the British-based insurer Prudential for AIG’s Asian arm, AIA, earlier in 2010 emphasized the potential seen in the Asian insurance industry. Prudential aimed to takeover AIA in a bid to further expand its reach across the Asian region in order to take advantage of emerging premium returns in China, Indonesia and India. Global insurers Bupa and Zurich have also entered into joint ventures / partnership agreements in 2010 to gain access to the growing Asian markets. Bupa’s joint venture in India – MaxBupa – was established earlier this year, with the Bupa group enjoying significant growth as a result.

As life-styles change and personal wealth increases, demands for indemnity insurance grow – whether life, saving, motor or health insurance. As needs change, there is scope to develop products to suit demands regionally. In Asia, the products provided under the takaful and mircosurance ranges are proving particularly successful.

Speaking on the future of AXA, Henri de Castries said: “We will finalize it in the coming months and will present our deployment plan in the first semester of 2011. The aspirations and priorities we are sharing today are at the core of our ambition, which aims at better preparing AXA for the opportunities created by the growing needs for insurance and protection worldwide.”

As AXA enters a new phase of global operations, it is focusing on becoming a more profitable insurer by cutting costs, improving efficiency and taking a more aggressive approach with capital allocation. In order to become more competitive globally AXA – like other international insurance companies – is concentrating on expansion of its activities in Asia, with the French insurer taking serious action reflected in its US$13.1 billion (€9.7 billion) joint venture bid with AMP to acquire AXA Asian Pacific Holdings.

Insurance Companies Mentioned:

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.

Bupa

Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, and China and across Latin America.

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.

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. Prudential’s Asian operations include Hong Kong, India, Malaysia, Singapore, Indonesia and other Asian countries.

AIG

The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.

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