Jun
30
Future Generali unveil new Indian Insurance Products
Filed Under Health Insurance, Insurance Company, Life Insurance, Medical Insurance | 2 Comments
Future Generali India Life Insurance has unveiled two new products which are ready to go on sale in India in the near future; a Net Asset Value (NAV) unit linked insurance plan, Future Generali NAV Assure, and health plus term life insurance plans.
Future Generali’s new Net Asset Value (NAV) unit linked plan, Generali NAV Assure, is set up to maximize the growth potential of the policy while providing some protection from volatile market forces by guaranteeing customers the choice between the highest daily NAV recorded in the first 7 years of the policy being in force or the NAV at the policy’s maturity date, whichever happens to be higher. The policy has a fixed term of 10 years and is available to any person between 8-60 years of age. Currently, about 70 percent of Future Generali’s business comes from unit-linked products.
Future Generali’s other product is planned for a future launch date. Since the Insurance Regulatory and Development Authority (IRDA) decided to allow combination products of health insurance coupled with life insurance earlier in 2010, Future Generali is planning on having its health plus life insurance ready within the next two months.
The Chief Executive Officer of Future Generali India Life Insurance, Deepak Sood said “We are looking to launch a health plus term life insurance product, possibly in the next two months. I see this kind of product to steadily build over the next three to five years. It can lead to several other combinations, and set the ball rolling for more complex products.”
Future Generali India Life Insurance is a joint venture between India-based Future Group and Italian insurance company Generali. Future Generali India Life Insurance earned Rs 4.86 billion (US$ 100 million) in business premiums during 2009 and is hoping to reach Rs 12 billion (US$ 257 million) in 2010.
Companies Mentioned:
Future Generali India Life Insurance
Future Generali India is a joint venture between the Indian Future Group and Italian Generali Group, it participates in both India’s life and non-life insurance markets as Future Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. The company has 91 branches in 83 locations around India, and works with over 44,000 licensed advisors.
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.
Future Group
Future Group is a multi-faceted Indian company that was founded in 1997 by Kishore Biyani, who remains the group’s CEO. Starting with the retail company Pantaloons, the Future Group has grown to the point where it now operates a number of companies ranging from retail operations, logistics, and financial services among others.
Jun
30
Chinese and American Healthcare Comparison by CIGNA CEO
Filed Under China, China insurance, CIGNA, Health Insurance, Healthcare, USA Health Insurance | 2 Comments
As well as being the fourth largest commercial insurer in the US, American health insurance giant CIGNA conducts approximately 20 percent of their business abroad, with most of the rapid growth coming from Asia, and in particular China.
In the US domestic market, CIGNA mainly acts as a Health Management Organisation (HMO) providing larger-scale employers with insurance packages, whilst their main role in China is in selling supplemental packages to individuals wanting more coverage than what is available under basic government-provided plans.
In the words of David Cordani, CEO of CIGNA, “It’s a real critical part of our growth strategy. It’s not new for Cigna, it’s just an acceleration” commenting on the continued and significant growth experienced abroad.
Further sharing his insights about the non-US marketplace, Mr. Cordani believes that the healthcare systems of both the US and China could learn from each other, explaining that in broader terms, the non-US marketplace has a very vibrant individual supplemental segment, from which to learn by providing people in the US with transparency, choice, and ready access to more retail-oriented policies.
Conversely, the healthcare system in China could learn more about American population-based health programmes including health coaching, disease care and lifestyle programmes.
Given that both countries are undergoing healthcare reforms on their respective healthcare systems, the insight offered by Mr. Cordani may be the type of food for thought needed to drive quality and cost improvements that will ultimately help make the new legislations correspondingly sustainable.
Insurance Company mentioned:
A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
Jun
29
Pan-American Life Insurance Approved to Operate in Costa Rica
Filed Under Health Insurance, Insurance Company, International Healthcare, Life Insurance, Medical Insurance, USA Health Insurance | 8 Comments
Pan-American Life Insurance Group has received final approval from the Costa Rican insurance regulator, Superintendencia General de Seguros (SUGESE), for its subsidiary Pan-American Life Insurance de Costa Rica, S.A. to operate in the country.
Pan-American Life Insurance Group is already the first US insurer allowed into Costa Rica, and all that remains for them to do before commencing operations is receive final portfolio and product approval from SUGESE. Pan-American is planning on rolling out a portfolio that includes group accident, life and health insurance as well as individual health insurance plans. Their offerings will also include an international health insurance plan, which offers access to local healthcare providers and local health benefits as well as access to healthcare providers around the world including those in the United States. Pan-American is working closely with SUGESE to receive approval.
Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group said “We are pleased that SUGESE approved Pan-American Life to operate in Costa Rica. This much anticipated moment marks a continued expansion in the execution of our regional strategic plan. The new competitive landscape in Costa Rica favors Pan-American Life, considering the company’s 99-year history and the Group’s deep-rooted experience throughout Latin America.”
Eugenio Magdalena, Pan-American’s Executive Vice President of International Markets added that “Our leading position in the region’s insurance industry commands high expectations for Pan-American Life in Costa Rica. We are committed to the opportunity to support the fulfillment of the health and life insurance needs of Costa Ricans.”
Insurance Company Mentioned:
Pan-American Life Insurance Group
The Pan-American Life Insurance Group was established in New Orleans in 1911 and now has operations in 47 U.S. states, as well Puerto Rico, Colombia, Guatemala, Panama, Ecuador, El Salvador, Honduras and the Cayman Islands. In Costa Rica, the company will offer term life insurance, universal life insurance, health and medical expense insurance and accident insurance.
Jun
29
Chinatrust Walks Away from Nan Shan Deal with AIG
Filed Under AIG, China | 6 Comments
Chinatrust Financial Holding Co. Ltd. of Taiwan has effectively walked away from a deal with a Hong Kong-based consortium, formed by China Strategic Holdings Ltd. and Primus Financial Holdings, to purchase a 30 percent stake in Nan Shan Life Insurance Co. Ltd. a unit of American International Group Inc. (AIG), by letting the deadline of the deal lapse.
The deadline stipulated in the memorandum of understanding signed between Chinatrust and China Strategic expired last week.
Chinatrust has made the decision in spite of a pending decision by the Taiwanese regulators, the extension of the deadline to 12 October reached between China Strategic and AIG, and having previously agreed to set-up a escrow fund in trying to increase the approval likelihood of the deal.
Taiwan-based Chinatrust is a financial holding company with businesses in banking, securities, credit cards, insurance brokerage and asset management, and had previously lost a bid to acquire Nan Shan.
In an agreement made back in November 2009, China Strategic would sell to Chinatrust a 30 percent stake in Nan Shan for US$660 million (EUR 538 million). As part of this agreement, Chinatrust would allow China Strategic obtain 9.95 percent stake in the company through a subscription of 1.17 billion shares of their common stock at US$0.55 (EUR 0.45) a share.
The Taiwan Ministry of Economic Affairs has not approved the deal yet and has declined to comment on the progress of the regulatory review.
Insurance Companies mentioned:
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Nan Shan Life Insurance Company, Ltd. was established in July 1963. After its restructuring in January 1970, Mr. K.K. Tse, the then Chairman of American International Underwriters, became the first Chairman of the company. In forty years, Nan Shan has become a super insurance company with the most professional management, the best operational performance, and a solid financial foundation. Its agency force has been recognized as the best in Taiwan’s life insurance industry.
Jun
28
Allianz Takaful Signs Medical Insurance Agreement with Apex Real Estate
Filed Under Allianz, Health Insurance, Medical Insurance, Middle East | 3 Comments
Allianz Takaful and Apex Real Estate Development Company have signed an agreement whereby Allianz Takaful will be contracted to provide employee medical insurance to Apex.
The agreement was signed by Allianz Takaful CEO, Dr. Abdul Rahman Tolefat and Apex Real Estate Development Company Managing Director Majed Al Khan. It will see Allianz Takaful, a wholly owned subsidiary of Allianz Group, organize medical insurance coverage of over BD 490,000 (US$ 1.3 million) for Apex employees and their family members, including cover for international emergency medical treatment.
Majed Al Khan, the Managing Director of Apex, said “’Apex Real Estate and its subsidiaries, Apex Green and Apex Properties, have witnessed operational growth leading to an increase in number of staff. As part of our initiatives to provide our employees with a professional and value-added working environment, we sought to engage a company offering a range of medical services supported by a high degree of expertise.”
The Allianz Takaful CEO, Dr. Abdul Rahman Tolefat said that “We are pleased to welcome Apex amongst our clients. We continuously seek to exceed our clients’ expectations by providing excellent service. We look forward to continuing this relationship with Apex.”
Insurance Company Mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Jun
25
Sustained Growth Ahead for the Medical Insurance Sector in the UAE
Filed Under Medical Insurance, UAE Insurance | 1 Comment
A research report entitled “UAE Insurance Market Forecast to 2012” by RNCOS, an India-based market research and information analysis company, points to continued growth in the rates of the medical insurance industry in the United Arab Emirates (UAE). The report projects a Compound Annual Growth Rate of around 42% between the years 2010 and 2013.
Citing the rising healthcare costs and a prospering middle-class population as growth drivers of the medical insurance industry, the report sees a promising future in the coming years, despite the growing concerns about a lack of awareness among the majority of the population.
The government initiatives in place that call for compulsory medical insurance starting this year, plus demand by individuals to take medical cover support the optimistic outlook described in the report.
The current insurance penetration rate of 2 percent in the UAE pales in comparison to the 5 to 15 percent rate of the US and the UK, indicating that there is great potential for growth in this area. Various innovative schemes and better coverage for urban and rural populations will tackle the low penetration rate, supported by strong economic growth and favourable demographic statistics.
An overview of the insurance market structure and trends, covered in the research document, reveals the impacting role that private players are having in the rapid growth of the insurance industry in the UAE. Also covered in the report are the forecasts on various segments of the insurance industry including life insurance, accident and liability, and fire.
Company mentioned:
RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. The professionals at RNCOS study and analyse the industry and its various components, with comprehensive study of the changing market behaviour. The accuracy and data precision delivered by RCOS proves beneficial in terms of pricing and time management that assist the consultants in meeting their objectives in a cost-effective and timely manner.
Jun
25
Allianz to Revamp Asian Property, Casualty Business
Filed Under Allianz, Health Insurance, Hong Kong, Insurance Company | 2 Comments
Allianz will reorganize their Hong Kong and Singapore based companies to come under the management structure of Allianz Global Corporate and Specialty (AGCS) as of August 1st, 2010, which allows them to share resources and expertise in order to increase profitability in the Hong Kong and Singaporean markets.
Both Allianz Insurance Company of Singapore (AICS) and Allianz Insurance Hong Kong Limited (AZHK) have developed strong presences in their respective markets; their local knowledge and relationships with sizable numbers of international clients have created considerable corporate and specialty portfolios. Allianz announced it will apply for credit ratings for both Allianz Insurance Hong Kong Limited and Allianz Insurance Company of Singapore.
Allianz intends to combine AICS and AZHK’s local capabilities with Allianz Global Corporate and Specialty’s expertise in processes and underwriting on a global scale to expand profitability in the Asian markets, while opening up access to AGCS’s full range of services and worldwide network. Allianz Global Corporate and Specialty’s services include risk consulting and claims processing as well as specialist products such as Directors and Officers Liability Insurance (D&O insurance) and International Insurance Programs.
The CEO of Allianz Global Corporate and Specialty, Axel Theis said “Hong Kong and Singapore are core markets for our clients in Asia, and we want to grow strong expertise here as part of our global network. This follows the strategy we’ve successfully developed in other locations such as Japan and Brazil – supporting our clients by combining local service delivery with global expertise and resources.”
Bruce Bowers, the CEO of Allianz Asia Pacific, also commented that “This strengthening of Allianz’s expertise in Asia underlines our commitments to our clients in these important markets. Across 15 countries in the Asia Pacific region, we are continuing to offer innovative products and solutions to serve the needs of our customers. This applies not only in corporate and specialty insurance but right across our portfolio throughout the whole of Asia – including private and commercial property and casualty insurance, life and health insurance, and asset management.”
Insurance Company Mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Jun
24
According to a recent statement by CEO Richard Ward, Lloyd’s anticipates that the premiums for insuring offshore drilling will go up “quite significantly” as a direct result of the BP oil spill in the Gulf of Mexico. Mr Ward acknowledged that in the past, rates for this type of operation in that area had fallen to a very low level, and fellow players in the industry had been questioning for quite some time the profitability of insurance in that particular region.
As a consequence of the Deepwater Horizon rig explosion back in April, insurers started to charge 50 percent more for policies covering oil rigs. Insurers of Lloyd’s are expected to pay between US$300 million (EUR 242.9 million) and US$600 million (EUR 485.8 million) in claims related to the explosion of the rig.
The rig, owned by Transocean, was insured by Lloyd’s underwriters and has coverage caps for environmental damage caused by the spill.
Insofar, BP has spent more than US$2 billion (EUR 1.6 billion) responding to the disaster and has set aside US$20 billion (EUR 16 billion) in escrow as per forecast by the US government, to settle future claims since BP didn’t buy insurance.
In a move aimed at limiting exposure, Lloyd’s underwriters have initiated legal action in the US by suing BP, asking the presiding judge to declare that they have no obligation to cover the liability related to the pollution resulting from the spill because a clause in the contract between BP and Transocean that stipulates that the rig owner would not be responsible for contamination originating below the water surface.
A pretrial conference in Houston, Texas USA has been set for 09 September.
Insurance Company mentioned:
Lloyd’s is the world’s leading specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2009, 74 syndicates are underwriting insurance at Lloyd’s, covering all classes of business from more than 200 countries and territories worldwide. Lloyd’s is regulated by the Financial Service Authority.
Jun
23
Aviva say World Cup fever may inspire more than just love of the game
Filed Under Aviva | 3 Comments
Apparently, part of the costs of insuring the World Cup include paying out property insurance claims for broken windows, which Aviva says have risen substantially above average during sports championships in the past.
During the time the 2006 World Cup in Germany was going on, Aviva noted a 25% increase over the usual summer traffic of claims involving broken glass, mostly to do with footballs being kicked astray. The company also noted an increase in broken glass claims of 30% in 2009, due to impromptu cricket games in the garden inspired by the Ashes series.
Aviva says that claims for broken glass average out to approximately GBP 600 (US$ 820) each; house windows, greenhouses, sheds and conservatories were the most common accidentally damaged objects while children were the usual suspects.
Rob Townend, the Director of Property Claims at Aviva says that “It’s great that famous sporting events inspire youngsters – and possibly some over enthusiastic parents – to get out in the garden and knock a few balls around, but it might be as well to direct those games of footie, tennis or cricket away from your home and towards the end of the garden or perhaps a local park”
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.
Jun
23
The subsidiary of the UK-based global insurance brokerage Willis Group Holdings plc, Willis Limited, has received approval by the local authorities to open a new representative office in Almaty, the financial centre of Kazakhstan, the country in Central Asia with a significant market of oil and gas industries.
All major oil companies have a presence in Kazakhstan, and through this new representative office Willis will be able to issue local contracts and policies through its current network partner, the local brokerage CIS Risk Consultants, which provides a full range of insurance services.
Willis has also opened offices in Russia and Ukraine. This is the third office opened by the company in the former Soviet Union and augments its national presence, initiated the 1990s.
Kazakhstan is well-positioned to become one of the top 10 oil producers in the world, and its economy is further supported by the production of grains and uranium.
In addition to commercial insurance, the representative office in Almaty will be able to offer domestic and international clients with reinsurance solutions delivered through the local insurance market, using the global placement capabilities of Willis.
Willis has assigned Simon Aubrey-Jones, Executive Director of Willis Eastern Europe to lead this Kazakh venture. Mr Aubrey-Jones is based in London and has accumulated extensive knowledge of the region throughout his involvement since the opening of the first representative offices in Russia and Ukraine, more than two decades ago.
Insurance Company mentioned:
Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world.
Jun
22
Cost of Medical Treatment in China heading skyward
Filed Under BUPA, China, China insurance, Health Insurance, Insurance Company, International Healthcare, Medical Insurance | 2 Comments
The cost of receiving medical treatment in China’s upscale private healthcare facilities in Shanghai and Beijing is on an astronomic rise, only this time the regular suspects of medical inflation, old age and larger numbers of lifestyle illnesses may not be to blame.
It seems that the limited number of high-end medical facilities has given them a corner on the market, which they have fully taken advantage of, with one hospital group even going so far as to send a memo to doctors to remind them to charge for removing stitches (sutures in medical terminology). The limited number of competitors reduces insurers’ ability to negotiate prices for various treatments with healthcare providers.
The Medical Director from the international insurance company Bupa, Dr. Sneh Khemka, says that “Globally, medical costs are rising by around ten to eleven per cent each year, at its worst, in China the inflation rate is 3,000 per cent. It is our view that the drivers of these higher costs are commercial, rather than medical. There is practically a monopoly in Shanghai and Beijing and the clinics charge what they like.” This would mean that Bupa customers’ premiums are rising by 200 to 300% per year in order to keep up with the inflated costs of treatment.
The major players providing high-end medical insurance targeted at foreigners and VIP mainland clients are Parkway which runs the Gleneagles hospital in Shanghai; United Family Healthcare which has hospitals in Beijing, Shanghai, Guangzhou and Wuxi; as well as International SOS which runs clinics, operational assistance offices and also keeps an air ambulance on hand for medical evacuations.
Healthcare providers justify the costs by the nature of their business, saying that providing VIP-level facilities and attracting highly-trained doctors with the ability to speak multiple languages from their careers in their home countries is challenging and expensive. Healthcare providers have also argued that prices are still below the cost of treatment in the U.S. healthcare system, most of the time.
The question becomes whether the continuing development of Chinese public hospitals and clinics – some of which have English-speaking doctors and even special wings for foreigners, such as Peking Union Medical College in Beijing and Ruijin Hospital in Shanghai – will reach a point where they begin competing with the entrenched international and VIP healthcare providers.
Insurance Companies and Healthcare Companies Mentioned:
Bupa
Bupa is an international health insurance company that provides health insurance for individuals and companies all over the world. Bupa has offices on three continents and over 7 million customers’ world wide. 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.
International SOS
International SOS is a healthcare services provider offering logistical assistance, alarm center services, preventative advice and emergency assistance including evacuation and repatriation. Originally founded in 1985 as AEA International, the company purchased International SOS in 1998 and renamed the company International SOS. The company now has more than 6000 employees working across 70 countries working in concert with non-government organizations, business and governments around the world.
Parkway
First listed on the Singaporean stock exchange in 1975, Parkway Holdings has become one of the top-quality integrated healthcare providers in Asia in the intervening years. Parkway now operates 16 hospitals in Asia, with over 3,400 beds throughout Singapore, China, Malaysia, India, Brunei, and the UAE. Parkway also boasts a nursing and health science college, extensive diagnostic, imaging and laboratory resources and the largest foreign owned medical network in Shanghai.
United Family Healthcare
United Family Healthcare is the product of Chindex (previously the U.S.-China Industrial Exchange), which was started in the early 1980s to sell technological equipment in China. In 1993 Chindex started to focus entirely on medical equipment which gave them the knowledge and connections to start United Family Healthcare’s first hospital in 1997 as a joint venture between Chindex and the China Academy of Medical Sciences, called Beijing United Family Hospital and Clinics (BJU). Since then United Family Healthcare has expanded, adding two additional satellite clinics in Beijing as well as 3 more hospitals in Shanghai, Guangzhou and Wuxi.
Jun
22
Targeting the UK broker market, underwriter Mark Allen has launched Alpha Underwriting, a new underwriting business specialising in the accident, health and travel insurance sectors, based on the underwriting capacity from Lloyd’s.
This new outfit, led by Mark Allen himself, aims to provide brokers with the quickest, yet highest-quality response to broker enquiries. Mr Allen has been an underwriter for a Lloyd’s syndicate, developing a portfolio of accident and health business, and has over 15 years experience within insurance markets, in areas covering brokerage, claims and underwriting.
The highly competitive markets in which brokers operate nowadays calls for a quality provider of competitively priced and well thought-out services, specifically targeting sectors such as business travel and personal accident. In the words of Market Allen, “The goal in establishing Alpha Underwriting is, therefore, to capitalise on the wealth of travel, accident and health insurance expertise that myself and my colleagues have, in order to provide an independent underwriting source for brokers.”
Alpha Underwriting, although recently established, has a strong network of brokers who benefit from their services, especially when looking for bespoke responses to individual risks as needed by their specialised corporate clientele.
Insurance Company mentioned:
Alpha Underwriting Ltd is a specialist Accident and Health Underwriting Agency providing insurance products to the UK broker market, authorised and regulated by the Financial Services Authority (FSA Reference 504604) and a member of the Financial Ombudsman Service.
Jun
21
CIGNA unveils new Private Medical Insurance product, SmarterHealth
Filed Under CIGNA, Health Insurance, Insurance Company, Medical Insurance, United Kingdom | 3 Comments
CIGNA’s UK branch, CIGNA Healthcare, has launched SmarterHealth; a new private medical insurance product targeted at mid-sized corporate clients with between 150 and 400 employees.
The new product, SmarterHealth, is based on a core list of benefits with the ability to add two coverage options to increase benefits; optional dental benefits which are split into four levels of coverage (Pearl Plan, Diamond Plan, Oral Health Plus and Oral Health Optimum), and travel insurance coverage which would cover both business and leisure travel including coverage of winter sports.
CIGNA’s SmarterHealth product also offers two options to downgrade coverage to manage costs, which are the removal of psychiatric cover as well as removal of access to CIGNA’s stress helpline. SmarterHealth also comes with four options for medical underwriting. Corporate clients can choose either full medical underwriting, medical history disregarded, moratoriums or continued previous medical exclusions for people switching from another insurer. Further options for co-insurance and excesses are also available.
Kristy Jagielko, CIGNA’s Head of Product Management said “We’re delighted by the positive response from intermediaries and companies alike on our new product. SmarterHealth truly provides a smarter solution for employers – they get a comprehensive plan that’s not only specific to their needs but is backed by our nurse led approach. This means that we’re actively involved in managing their healthcare claims and costs. And we do this while helping employees and their families get the most appropriate treatment in the most appropriate setting.”
Insurance Company Mentioned:
CIGNA
A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
Jun
18
Chinese Insurance Companies continue growth in 2010
Filed Under China, China insurance, Health Insurance, Income Protection, Insurance Company, Life Insurance | 1 Comment
Three of China’s largest insurance companies continue their strong growth in the first five months of 2010. China Life Insurance (CLI), Ping An Insurance Group of China (PAIGC), and China Pacific Insurance Corporation (CPIC) maintain year-on-year growth in gross written premiums.
China Life Insurance (CLI) reported total premiums of RMB 154.9 billion (US$ 22.7 billion), which is a 6.39% increase over the RMB 145.6 billion (US$ 21.3 billion) in premiums received during the same time period in 2009. China Pacific Insurance Corporation (CPIC) reported earning RMB 64.2 billion (US$ 9.4 billion) in premiums received between January and May in 2010.
Ping An Insurance Group of China (PAIGC) is reporting that it has brought in RMB 104.51 billion (US$ 15.3 billion) in unaudited insurance premiums during the first five months of the year, a 35.76% increase from the same time period last year. Ping An’s Chinese life insurance division, Ping An Life Insurance Co of China Ltd, earned RMB 77.72 billion (US$ 11.4 billion) in premiums, up 26.17% over the corresponding period from 2009.
Ping An also reported income in their casualty insurance unit of RMB 24.74 billion (US$ 3.6 billion) worth of premiums, as well as RMB 64.38 million in premiums from its China health insurance unit, and RMB 1.99 billion (US$ 290 million) in premiums from their annuities insurance subsidiary.
Insurance Companies Mentioned:
China Life Insurance
China Life Insurance Company Limited (China Life) is a People’s Republic of China-based life insurance company. The products and services include individual life insurance, group life insurance, accident and health insurance. The Company operates in four business segments: individual life insurance business, group life insurance business, short-term insurance business, and corporate and other business.
Ping An Insurance
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
China Pacific Insurance
China Pacific Insurance (Group) Co., Ltd. (CPIC) was established on the basis of China Pacific Insurance Co., Ltd., which was founded on May 13, 1991. Headquartered in Shanghai, its registered capital stands at RMB 7.7 billion. The company was listed in Shanghai Stock Exchange on Dec. 25, 2007, with the stock code of 601601 and the stock name of “ China Pacific”. The Company was listed in the Stock Exchange of Hong Kong Limited on Dec. 23, 2009, with the stock code “02601” and the stock name of “CPIC”.
Jun
18
New Website in Spanish from Regence BlueCross BlueShield Says ‘Hola’
Filed Under Healthcare, Insurance Company, USA Health Insurance | 1 Comment
The new website in Spanish at www.regence.com/espanol has been launched by Regence BlueCross BlueShield as part of their Latino outreach initiative. The contents of the website has been fully customised with features appealing to the Latino community such as articles about health and wellness, Regence programmes and resources, information about the benefits of the insurance on offer, contact information for Consejeros (Spanish for Concierges) and details on the Latino Hero Award Programme.
There is also the option to establish online communication with the bilingual and bi-cultural representatives responsible for answering the customer service and requests for support enquiries submitted through the contact web-page.
The ultimate aim of this website in Spanish is to serve as a guide to members of the Latino community in navigating the health care system, as there currently exist significant health disparities in need of being properly addressed.
Breaking down the linguistic and cultural barriers that make it difficult for many members of the Latino community to understand the health insurance system in the US, is one of the most important goals of the Regence initiative and the driving reason in trying to engage the Latino community.
In addition to the efforts described above, Regence also produces health education radio and TV spots, promotes a campaign to honour Latino community leaders, as well as promoting insurance products especially tailored to fit the needs of the Latino market.
Insurance Company mentioned:
Regence is the largest health insurer in the Northwest / Intermountain Region, offering health, life and dental insurance. Regence serves more than 2.5 million members as Regence BlueShield of Idaho, Regence BlueCross BlueShield of Oregon, Regence BlueCross BlueShield of Utah and Regence BlueShield (selected counties in Washington). Each health plan is a nonprofit independent licensee of the Blue Cross and Blue Shield Association.
Jun
17
Zurich enters Indonesian Life Insurance market
Filed Under Income Protection, Insurance Company, Life Insurance | 1 Comment
Zurich Financial Services Group subsidiary, Zurich Insurance Co., has bought a majority stake in Indonesian life insurance company, PT Mayapada Life.
Zurich Insurance has agreed to buy an 80% stake in Mayapada Life from its parent company, Mayapada Group, for an undisclosed amount. The deal is expected to close in the third quarter of 2010, subject to regulatory approval.
Mayapada Life had gross written premiums of USD 1.7 million in 2009; its purchase by Zurich gives the Swiss company a platform in the Indonesian life insurance market from which it can expand by offering savings and protection products to the growing population.
In order to ensure that they can immediately avail themselves of bancassurance distribution channels in Indonesia, Zurich has arranged a long term distribution agreement with PT Bank Mayapada International Tbk (Mayapada Bank).
Zurich’s CEO of Global Life, Mario Greco, said that “The acquisition of Mayapada Life is a first step in Zurich Life’s expansion plans in Indonesia. It underpins our commitment to developing the market in Indonesia and our strategy of providing protection and saving products to the rapidly growing number of the population with such needs. The Mayapada Group will be a strong local partner as we seek to build key relationships to grow our business in the Asia Pacific region.”
Insurance Company Mentioned:
Zurich Financial Services Group is an insurance-based financial services provider with a workforce of approximately 60,000 people. The company was founded in 1872, and is headquartered in Zurich, Switzerland. They currently serve their customers in more than 170 countries around the globe, with aims of becoming one of the top five global insurers.
Jun
17
The China Insurance Regulatory Commission (CIRC) appears to be in the latest stages of discussions to ease the restrictions on some types of investments made by insurance companies in China. The proportion of the capital from insurance companies invested in the stock market will be increased to a 25 percent from the current 20 percent limit.
Other restrictions currently imposed on insurance companies under review include the policies governing investments in bonds, the Hong Kong stock market, and the threshold for debt investments – which is expected to be lowered.
One area that will not be modified pertains to property investments made by insurance companies. At present, insurance companies are not allowed to invest in residential buildings, be involved during the property development stage or do direct investments in the commercial property sector. The rules addressing property investment are expected to be finalised at a later time, although it is anticipated that the current investment restrictions will remain largely unchanged.
Analysts anticipate that the new rules will procure about US$1.5 billion (EUR 1.2 billion) of capital into the Chinese stock market.
The new regulations are expected to be released soon.
Regulatory Body mentioned:
The China Insurance Regulatory Commission (the “CIRC”), established on November 18, 1998, is authorized by the State Council to conduct administration, supervision and regulation of the Chinese insurance market, and to ensure that the insurance industry operates stably in compliance with law. In 2003, the State Council upgraded the CIRC from a semi-ministerial institution to a ministerial institution directly under the State Council, and to expand the size of the CIRC in terms of staff, internal setup, and local offices.
Jun
15
Purchaser of Nan Shan Agrees to Escrow Funds Request by AIG
Filed Under AIG, China, Hong Kong, Insurance Company, Life Insurance | 7 Comments
The buyers of Nan Shan Life Insurance, the Taiwanese life insurance unit of AIG, have agreed to amend their purchase agreement to include a escrow funds clause, in order to strengthen the bid for regulatory approval of the transaction.
Under these amended terms, US$325 million (EUR 266.4 million) of the purchase price will be isolated for a 4-year period under escrow, as an additional measure to improve the capital ratio of Nan Shan. This effectively means that AIG will not receive the full purchase price of the deal until 2014.
According to regulations effective in Taiwan, insurers are required to have a risk-based capital ratio of at least 200 percent. The escrow funds would be used to boost the capital ratio of Nan Shan should the need arise during the 4-year special funds lock-up period.
The Taiwan Ministry of Economic Affairs is currently reviewing the sale of Nan Shan to the Hong Kong-based consortium comprising China Strategic and Primus Financial Holdings. There are various concerns related to the transaction which are currently under scrutiny, including the shareholding structure of the consortium, source of capital and future commitments to employees and policyholders to ensure that their interests are safeguarded.
Under the original deal reached last October, AIG had agreed with the said consortium to sell a 97.57 percent stake of Nan Shan for US$2.15 billion (EUR 1.76 billion).
Insurance Companies mentioned:
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Nan Shan Life Insurance Company, Ltd. was established in July 1963. After its restructuring in January 1970, Mr. K.K. Tse, the then Chairman of American International Underwriters, became the first Chairman of the company. In forty years, Nan Shan has become a super insurance company with the most professional management, the best operational performance, and a solid financial foundation. Its agency force has been recognized as the best in Taiwan’s life insurance industry.
Jun
14
AXA UK Life Business may be Acquired by Resolution
Filed Under Insurance Company, United Kingdom | 3 Comments
Resolution Plc, the company headed by insurance tycoon Clive Cowdery, has been in talks with the French group AXA for over one month, to buy most of their AXA UK business for GBP 2.8 billion (EUR 3.36 billion; USD 4.1 billion). This deal would create one of the biggest life groups in Britain.
The cash needed for this deal would be raised by a GBP 2.5 billion (EUR 3 billion; USD 3.66 billion) rights issue by Resolution, which lists already in the stock market. The embedded value of AXA UK business is estimated at GBP 3.5 billion (EUR 4.2 billion; USD 5.1 billion), a valuation of the worth of insurance companies based on the market value of net assets plus future profits from existing policies, therefore the deal would be widely considered by analysts as discounted.
Resolution intends to combine AXA UK business with Friends Provident, which was acquired last year for almost GBP 2 billion (EUR 2.4 billion; USD 2.9 billion). Even though this merger will result in one of the largest providers of protection products and group pensions services in Britain, it will bring huge cost savings, but also job losses in the form of operational redundancies.
The British operations of AXA employ 11,000 people disseminated across AXA Life, AXA Insurance, AXA PPP Healthcare and AXA Ireland. Offloading of these operations would allow AXA France to focus in fast business-growth areas such as Asia.
It is understood in financial circles that Resolution intends to create a group with GBP 10 billion (EUR 12 billion; USD 14.6 billion) of embedded value by Q1 2011, which still gives room for Resolution to close on a bigger deal than this one with AXA.
Companies mentioned:
Resolution Operations LLP is a privately owned advisory and operating firm which provides services to Resolution Ltd. Resolution Operations LLP is part of the Resolution Group that also includes Resolution Capital Limited and Resolution Financial Markets LLP. Resolution Capital Limited facilitated the creation and initial public offering of Resolution Limited. Resolution Financial Markets LLP undertakes for Resolution Operations LLP a range of activities that include working with investors to facilitate the direct placing of equity and debt with institutions.
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.
Jun
11
Paying out for the World Cup
Filed Under Insurance Company, United Kingdom | 1 Comment
Part of the problem with helping to insure the World Cup for GBP 6.2 billion (USD 9 billion) is the fact that you might have to pay out, as Lloyd’s of London may find out.
Among the many businesses offering World Cup related deals is an electronics retail store in the UK called Curry’s. In an effort to make high-end televisions more attractive to customers, Curry’s has offered a GBP 10 (USD 14.60) refund to customers who have recently purchased a high-end TV, for every goal Britain scores during a football match, although the deal excludes penalties and own goals.
Curry’s has taken out contingency insurance on the refund policy with Lloyd’s, according to the Financial Times. While the amount being paid out is dependent on England’s performance, some are estimating Curry’s bill to be about GBP 60 (USD 87.6) based on the England national football team’s past performances. So far, Curry’s hasn’t disclosed its total liability on the subject.
Insurance Company Mentioned:
Lloyd’s is the world’s leading specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2009, 74 syndicates are underwriting insurance at Lloyd’s, covering all classes of business from more than 200 countries and territories worldwide. Lloyd’s is regulated by the Financial Service Authority.
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