Jun
30
South Korea Medical Tourism Reforms
Filed Under Healthcare | 3 Comments
Foreign patients who are being treated at South Korean healthcare facilities will soon be able to receive guaranteed compensation from the government in the event of medical malpractice. Korean hospitals will also be allowed to sell pharmaceuticals directly to foreign patients, circumventing the previous referral process, and outside medical staff visiting South Korea for training purposes will become eligible to participate in clinical procedures and research. These are all part of the Korean Ministry of Health and Welfare’s updated medical tourism guidelines, announced earlier this month.
Since 2009, the Korean government was embarked on an aggressive marketing strategy to promote medical tourism overseas as a new reason for international travelers to come to South Korea. According to the Ministry of Health and Welfare, 81,789 tourists came to the country for medical reasons in 2010, with cosmetic procedures proving particularly popular. This represents a 36 percent increase on the previous year’s totals with total revenue from treatment on foreign patients nearly doubling as well. The Ministry recorded 7,901 foreign patients in 2007, 27,480 in 2008 and up to 60,201 in 2009.
Despite this continued growth, South Korea lags behind many of its Asia Pacific neighbors in the medical tourism field. Thailand, Singapore and India, for example, managed last year to attract 1.5 million, 720,000 and 730,000 foreign patients respectively. Although the Korean Medical Association claims the country can offer a high level quality of medical service at comparable prices to its continental rivals, the global awareness and brand image of Korean healthcare facilities remains low. Critics within the country’s medical tourism sector, point out that there has been no unified governance over this important industry and little regulatory support. This has led to a lack of standardization and little control over health outcomes for foreigners. Current national law has also been overtly restrictive, rationing a maximum 5 percent of total bed capacity to non-citizens and previously preventing domestic hospitals from operating on a for-profit basis.
By 2015, the South Korean government wants the total number of foreign patients receiving treatment in the country to surpass 300,000 annually. To do this they have initiated broad-based medical tourism reforms that aim to cut the red tape, becoming more foreigner-friendly, and all while guaranteeing patients’ rights.
Starting in 2012, foreign patients will be eligible to seek compensation if they become victims of medical malpractice in South Korea. At present, there are no proper compensation standards or systems set up for non-resident malpractice victims. Korean hospitals and clinics have been reluctant in the past to pay higher subscription rates for insurance and this had been a source of tension driving away potential foreign business. To implement these new initiatives, the government plan to establish a mutual aid association, comprised of participating Korean hospitals and clinics, which will collect a surcharge on the fees these medical facilities charge foreign patients. The association will then use the pooled funds to compensate foreign patients when claims arise. The Ministry of Health will head the heretofore unnamed association on a temporary basis until the full compensation and legal mechanisms for the body are completed.
Through this new united national body, the government hopes to further encourage the private healthcare sector to invest more in attracting overseas clients, and plans to support them further through necessary immigration policy adjustments. The Korean state agencies eventually plan to relax visa rules, enabling prospective foreign patients to skip complicated administrative procedures and gain entry to the country more easily. The multifaceted pharmaceutical system will also be streamlined for overseas clients. Foreign patients will be able and encouraged to purchase their medications directly through their hospital or clinic, without having to refer their prescriptions to a pharmacy instead.
Regulations involving the future construction of accommodation facilities at hospitals will also be amended to encourage development. While many Korean healthcare professionals recognize medical tourism as a vital growth industry, many hospitals in the country have not set up the medical care infrastructures expected by foreigners, and this needs to addressed quickly. Foreign healthcare professionals, staff and consultants, will also be allowed to treat patients and participate in research.
Other plans to keep improving the quality of medical tourism services available in South Korea involve broadening the country’s communications services. Compared to other international medical markets, the lack of foreign language capability among many Korean healthcare providers remains a primary concern. The government announced plans to tackle this problem by increasing training for medical translators and through expanding the services of the national health call center. In addition, foreign patients will be encouraged to interact and give feedback through a comprehensive annual survey that will aim to identify systemic problems within the Korean healthcare system earlier. The introduction of an easy-to-follow star ratings system for domestic clinics and hospitals, is also being discussed.
The forecast for the Asian medical tourism industry is bright, with an estimated total value of US$100 billion projected annually by 2012. The substantial development of the global economy coupled with the falling costs of travel and communication has enabled world class healthcare practices to establish themselves all around the world. International clients seeking alternative healthcare solutions to what is available in their home countries at competitive prices now are presented with many opportunities. If South Korea wants to become a major player in this lucrative industry these reforms represent a decent start.
Jun
29
Life insurance, health insurance, property insurance, and…no-show insurance? No-show insurance is just one of the plans being offered to celebrities today, as substance abuse and resulting medical conditions are increasingly preventing singers and actors from showing up to scheduled appearances.
Just a few days ago, five-time Grammy winner Amy Winehouse, whose 2006 song “Rehab” foreshadowed her steady downfall (“They try to make me go to rehab, I said no, no no”), stumbled onstage in Belgrade, Serbia, unable to sing or remember the lyrics to her own songs, and even appeared to not know where she was. While her “performance” is certainly tabloid fodder, one can’t help but to wonder who is going to pay the price for this disaster, as fees for tickets, venue, equipment, and payment of employees become very expensive.
Neil Warnock, Chief Executive of The Agency Group booking agency (which represents artists such as Paramore, who will be performing in Hong Kong later this summer), weighed in on the situation to explain a typical cancellation/non-appearance insurance policy. “If you fairly disclosed any pre-existing conditions, and what caused the cancellation is a new condition, then the artists and promoters would be covered. If it’s a pre-existing condition, then it wouldn’t be covered, or if it’s an undeclared condition that should’ve been declared, then that wouldn’t be covered.” Winehouse’s bouts with illegal substances and stints in rehab are no secret to the public; in 2008, her father disclosed that his daughter’s lungs were only operating at 70% capacity due to her smoking and cocaine habits. To put it simply: unless Winehouse’s performance issues were caused by something other than her highly publicized substance abuse problems, she’s going to have to pay.
Winehouse is not the first celebrity to deal with insurance policies related to personal issues . No-show contracts go as far back as Marilyn Monroe, whose own struggles with substance abuse led studios to purchase insurance on her, enabling the studios to be compensated for the financial losses caused by her absence.
Most recently, Michael Jackson’s insurers, Lloyd’s of London, and and his concert promoters, AEG, have been locked in a lawsuit over his canceled comeback tour. After Jackson’s death in 2009, Chief Executive of AEG Randy Phillips proclaimed that the cancellation and non-appearance insurance policy the company took out on Jackson would cover any costs should the late star die accidentally (but not because of natural causes), specifically US$17.5 million to AEG and Jackson’s estate. However, a couple of weeks ago, Lloyd’s revealed that they were not willing to pay the fees and were instead suing AEG and Jackson’s company for not disclosing his full medical history. Lloyd’s has requested a Los Angeles Superior Court judge nullify the policy, as they were not informed of “his apparent prescription drug use and/or drug addiction.” Howard Weitzman, lawyer for Jackson’s estate, contended that Lloyd’s “legal action is nothing more than an insurance company trying to avoid paying a legitimate claim by the insured.”
The costs of an actor not showing up to a set are just as exorbitant as a singer canceling a concert. Charlie Sheen, most recently known for his outlandish comments-such as those against former performers-“the run I was on made Sinatra, Flynn, Jagger, Richards, all of them look like droopy-eyed, armless children”-reportedly wants to return to work. Although it should be noted that despite substance abuse problems, The Rolling Stones were able to fulfill their contracts and perform as promised. Unfortunately for Sheen, not all of Hollywood is sure if he is worth it; a successful comeback may largely depend on who is willing to insure him. Morgan Creek Productions CEO James Robinson (who has previously worked with frequent absentee Lindsay Lohan), said that “when an actor doesn’t show up for work, you can lose half a million dollars a day paying the 250 other people there for the shoot and the costs for the set.” However, Lorrie McNaught, Vice President at leading entertainment insurance brokerage firm Aon/Albert G. Ruben disagrees, saying that it isn’t a question of whether or not to insure someone, but rather, how much they are worth. “Everyone and anything, or almost anything, is insurable. It just comes down to price.”
As some celebrities’ careers continue to spiral downwards due to personal issues, it remains to be seen whether the substance abuse and frequent absences are worth the price of insuring them.
Insurance Companies Mentioned:
Lloyd’s of London: With the motto “uberrimae fidei”, or good faith, Lloyd’s provides insurance and reinsurance services, covering some of the world’s greatest and most complex risks.
Aon/Albert G. Ruben: Covering production companies, performers, and more, Albert G. Ruben provides risk management and insurance services for the entertainment industry.
Jun
29
Aon Benfield, global reinsurance intermediary and capital advisor for Aon Corp., has released figures from a survey it conducted at its International Analytics conference that reveal 60 percent of all European insurers believe 2014 would be a better starting date for Solvency II. Europe’s foremost insurance underwriters, reinsurance managers and senior analytics experts have expressed doubt that EU regulators are ready to implement the new capital regime.
Solvency II is the European Union’s updated set of financial frameworks that will stress risk-based capitalization and require insurance and reinsurance companies based in Member States to set aside sufficient capital for investments that regulators deem risky. The rationale behind these solvency rules is to ultimately develop a singular market for insurance services in Europe and offer adequate protection for all policyholders within. However, many countries have been critical of the EU’s requirements and have instituted their own reforms, leading to a muddled patchwork of market regulations across the continent. Short term concerns persist that Solvency II could lead to insurers increasing their capital position at the expense of tackling new business ventures and damaging their overall competitiveness on the global insurance marketplace
The release of Aon Benfield’s survey results follow last week’s news that the Council of Europe, on which the EU member states sit, had agreed a proposal that would push the Solvency II start date to 1 January 2014. The new capital regime was due to be implemented in January 2013 but concerns over the preparedness of some countries, industry players and regulators have forced a rethink. The European Parliament has yet to put forth their own recommendations and it is unlikely the issue will be fully resolved until later this year. The ongoing economic crisis in Greece could further complicate matters as it undecided who could manage the additional capital requirements needed for bailing out more insurance companies.
A delay to the current Solvency II timetable has appeared likely as Omnibus II, approved modifications to the regime, have yet to be passed into legislation. The European Commission cannot formally adopt implementation measures and proper industry guidance until that is completed, as Aon Benfield notes on its website: “All of these components have to be passed into legislation following the required consultation periods, ahead of Solvency II’s inception.”
While a majority of Aon’s conference attendees would support this development, 31 percent of surveyed industry delegates felt the date should not be deferred and were working towards the original Jan. 1, 2013 implementation date. The remaining 9 percent of respondents thought “maybe” the date should be delayed.
Furthermore, insurance companies revealed doubts over the level of understanding their local regulator has of the modern insurance business. The poll found that 61 percent of European insurers surveyed thought that their industry regulator was not up to the mark with regards their internal capital models. A majority of those polled, 54 percent, also expressed doubt that their local regulator understood the latest underwriting risks and in particular catastrophe risks, which have been particularly relevant given the unprecedented string of natural disasters occurring earlier this year.
Aon Benfield is committed to working with insurance companies to ensure the entire industry is prepared for the eventual introduction of Solvency II. Mark Beckers, Head of Aon Benfield Analytics EMEA, recognized in a statement that “Insurers are juggling a plethora of pressures to comply with Solvency II. We are helping clients to prioritize their efforts by concentrating on the areas that really impact their capital charge. For example, the Cat Task Force has been forced to review the standard formula for non-life catastrophe risks as the results were deemed too volatile. However we have little hope for fundamental change before the start of Solvency II.”
Gareth Haslip, Aon Bedfield’s Head of Risk and Capital Strategy UK & EMEA, added that it would be vital for insurers press ahead with their current plans and timetable, concluding: “Insurers need to take strategic decisions and be prepared to change their business model in order to be ready in time. By meeting the 2013 deadline, companies that have a good grasp of Solvency II will have more time to focus on how best to operate their business for the benefit of their shareholders in this new environment. Being prepared will also bring a competitive advantage.”
The scope and ambition of Solvency II is considerable, as are the problems currently affecting many members of the EU. For the worldwide insurance industry, this new regulatory framework presents both a wide range of opportunities and ample considerations. Once initiated, Solvency II will pass fundamental changes in the way the European insurance industry evaluates risk and risk management practices. The EU’s new capital requirements will force a convergence of all aspects of risk quantification and decision making processes within the insurance trade. All businesses that have operations and affiliates in Europe, offer insurance products in Europe or do other business with European insurers, should now be preparing for these across-the-board changes.
Insurance Company Mentioned
Aon Benfield
Aon Benfield Analytics is an industry leader in actuarial, enterprise risk management, catastrophe management, and rating agency review. Aon’s track record of innovation and world-class position in analytics, modeling and client-facing technology helps companies to optimize their portfolios. Proprietary tools include ReMetrica, CatPortal, and ExposureView. Also, their Impact Forecasting team develops tools and models that help companies understand financial implications of natural and man-made catastrophes around the world. The company has an international network of over 80 offices in 50 countries.
Jun
29
ExpatHealth.org International Health Round-Up – June 2011
Filed Under Healthcare, Technology, USA Health Insurance | Leave a Comment
June saw an E. coli outbreak in Europe and a fresh round of bird flu cases in Egypt, as well as the release of insightful research on both medical error and dengue fever. A key theme across health issues remains weighing the long-term benefits of preventative care (or systemic reform) against up-front costs. That the United States showed the highest error rate among seven developed nations does nothing to enhance the rep of its notoriously cost-inefficient health system – worth bearing in mind as the debate over health reform heats up once more.
Here are some of the top international health stories of the past 30 days:
E. coli ravages Europe
The top story in June was undoubtedly a deadly E. coli outbreak in Germany. Cases were initially reported in May but escalated sharply in June – as of June 28 around 4,000 people had been sickened and total fatalities stood near 50. German authorities identified bean and seed sprouts as the vehicle for the outbreak. While the number of new cases reported in Germany continues to decline (the total is still rising as a result of delayed reporting), late June brought the emergence of 8 cases in France. These too were linked to consumption of raw sprouts. French and German authorities are in the process of determining whether the bacteria had a common source.
For the latest on this story, click here.
USA and Australia show highest medical error rates
Patients who received poorly coordinated medical care or were unable to afford basic medical costs were much more likely to report errors in their medication or treatment, according to a study published in the International Journal of Medical Practice. Researchers from the USA and Australia used data from the Commonwealth Fund International Health Policy Survey to identify the key risk factors behind the errors reported by patients from Canada, USA, the Netherlands, UK, Germany, Australia and New Zealand. 11% of the 11,910 people surveyed said they had suffered a medication or medical error in the last two years. Patients in the USA and Australia reported the highest rates of medical/medication error: 13%. Germany and the UK reported the lowest at 9%.
For more on this story, click here.
WHO finds dengue fever costly as it is deadly
The World Health Organization (WHO) released its latest Dengue Bulletin (PDF Link), a special issue devoted to 10 studies on the cost of dengue fever and various prevention strategies. In an age where many diseases are on the decline dengue continues to pose a serious health threat all over the world. In Brazil, for example, the number of cases increased 6.2% and deaths 12% from 1999-2009. Dengue fever is a mosquito-borne virus common in tropical climates, including popular expat destinations such as India, Thailand and Malaysia. Studies estimate the annual cost of treating it to be in the hundreds of millions of dollars in the latter two countries. For India the figure is in the billions.
For more on this story, click here.
5 new cases of avian influenza in Egypt
WHO reported 5 new cases of avian influenza (or “bird flu”) in Egypt, 3 of which were fatal. The cases were scattered across the country, and are believed to have resulted from exposure to infected poultry. They were confirmed by the Egyptian Central Public Health Laboratory. To date the country has seen 149 cases and 51 deaths from the disease. While avian influenza poses little threat to tourists visiting Egypt on holiday, a spike in cases would do nothing for the country’s image. Revenues from tourism were down 46% in the first quarter of 2011 in the wake of the recent revolution.
For more on this story, click here.
Be sure to check back on this space for more updates in July.
About ExpatHealth.org
ExpatHealth.org offers a one-stop source for international best practices in expatriate health care, expat trends and regulatory changes impacting the health industry. The site covers both global and regional health issues. http://expathealth.org
Jun
28
Boosting Big Investments in “BRIC”
Filed Under Health Insurance, Hong Kong, Insurance Company, International Healthcare, Life Insurance, Medical Insurance, USA Health Insurance, Uncategorized | 1 Comment
As the economies of Brazil, Russia, India and China continue to grow, increasing numbers of international insurance and reinsurance companies are seeking to enter into these burgeoning regional markets. As some of the most recent international insurers to tap new country markets have found out, not only must they balance short and long-term strategies, but also provide appropriate and appealing products to local populations, sometimes even in the middle of shifting regulatory environments.
Just last week, at the Insurance Day Conference in Bermuda, Joe Plumeri, CEO and Chairman of Willis Group Holdings, spoke about the importance of maintaining growth in the Indian health insurance market along with the markets of Brazil, Russia, and China, or the “BRIC” countries as they are sometimes called. He stated that due to these countries’ developing populations, “the wealth and insurable value that an exploding global middle class will create will be unprecedented in history. The resulting demand for insurance will dwarf the capital and capacity of today’s insurance market.” Plumeri emphasized that “the new middle class will need brokers that understand them and their industries. They’ll need carriers who are innovative, financially secure, and who are there when they need them-carriers with a reputation for paying legitimate claims quickly.” A report published by Standard and Poor’s this week reaffirmed his opinion, with S&P credit analyst Magarelli stating that India’s “non-life sector, which includes property/casualty and health insurance, has one of the lowest penetration rates in Asia.” Again asserting Plumeri’s opinion on what customers will need from carriers, Magarelli proclaimed that in order to maintain the growth of the Indian insurance market, insurers need to start focusing more on key factors such as customer service, innovation, and efficiency; currently, “the insurers’ persistently poor underwriting performance..could potentially stunt the industry’s growth if it remains unchanged.”
As the demand for insurance in Brazil grows, The Travelers Companies Inc has just purchased 43 percent of Brazilian insurance company J. Malucelli Participacoes em Seguros e Resseguros SA for US$410 million, with the opportunity to increase its stake in the company to 49.9 percent over the next 18 months. As J. Malucelli already commands 30% of Brazil’s largest market, it is no surprise that Vice Chairman and head of Traveler’s Financial, Professional, and International Insurance business segment Alan Schnitzer said that J. Malucelli’s “extensive customer base provides us [The Travelers Companies, Inc.] with an exceptional platform for expanding the joint venture beyond the surety business into the growing property and casualty market.”
In accordance with projections for growth in Malaysia’s insurance sector, Zurich Insurance Company Ltd has just purchased Malaysia’s Assurance Alliance Bhd, a subsidiary of MAA Holdings Bhd, in full. A financial holding company, MAA offers general and life insurance, reinsurance, property management, investment advising, and more; Zurich purchased the general and life insurance sectors of the company. The sale comes a few months after Dan Bardin, Zurich’s chief executive of Global Life Asia Pacific and the Middle East, disclosed that the company was interested in expanding in Malaysia, saying that now is a “great time” to focus on expansion in Asia, although it can be “an enormous task to integrate.” Unfortunately, the sale effectively removed the basis of MAA, resulting in the quick descent of MAA’s shares on the Bursa Malaysia Stock Exchange from 5 sen to 67.5 sen on a volume of 32.63 million shares. MAA is also suffering other monetary issues, as without adequate internal funding, the company may not be able to pay their final principal payment of RM140 million. Whether or not they are able to do so will depend on the profit made from the RM344 million (US$114 million) sale to Zurich.
Bardin has reported that the company is also interested in expanding to Singapore and Taiwan. Contrary to S&P credit analyst Magarelli’s opinion that India has “one of the lowest penetration rates in Asia”, Zurich Regional Chairman of Asia/Pacific and the Middle East Geoff Riddell has reported that the company is currently not looking at expanding to India due to the competing prices caused by large private life insurers entering the market already. In March, Warren Buffett’s Berkshire Hathaway entered the Indian insurance market to sell automobile policies for Bajaj Allianz General Insurance, while New Zealand/Australia insurance giant IAG currently owns a 26 percent share of the Indian sector of its business alongside the State Bank of India.
Managing Director of Swiss Reinsurance’s Corporate Solutions Division Ivan Gonzalez elaborated on Swiss Re’s goals for expansion in the future in an interview last week. With 80% ownership of Brazilian insurance company UBF Seguros, Swiss Re has already gotten a footing in the Latin American insurance market, but they hope to use this ownership to expand in and out of Brazil; to grow the company “as a business”. With an eye on the other three largest Latin American markets-Mexico, Chile, and Columbia, Swiss Re is also opening an office in Miami, in order to “be closer to the Latin America market”, Gonzalez said.
Locally, Hong Kong is also trying to maintain its global financial foothold, as the Hong Kong government has begun to talk about creating an independent insurance authority; its aim will be to enhance “regulation and development of the insurance industry”, the government said. Secretary of Financial Services and the Treasury KC Chan also stated that the authority will “reinforce Hong Kong’s position as an international financial center.”
It is clear that companies will continue expanding into Brazil, Russia, India, and China, but only time will tell if they will be able to provide customer service that will maintain a good relationship between these countries and their new insurers.
Insurance Companies Mentioned:
Zurich: Although its headquarters are in Switzerland, Zurich services customers in more than 180 countries, providing insurance for markets in North America, Europe, Latin America, and the Asia Pacific. In North America, Zurich is the second-largest provider of commercial general liability insurance and the fourth-largest commercial property-casualty insurer.
Swiss Reinsurance: As the second-largest re-insurer in the world, Swiss Re maintains a presence on all continents, providing reinsurance for Property and Casualty and Life and Health related issues, as well as risk management services for corporations.
Bajaj Allianz Insurance Company: A joint venture between global insurance giant Allianz SE and Bajaj Finserv Limited, one of the 2 and 3 wheeler manufacturers in the world, Bajaj Allianz offers health, child, and pension policies in more than 1,200 offices across India.
J. Malucelli Seguradora SA is a Brazilian insurance company that provides surety insurance.
Malaysian Assurance Alliance Holding’s Berhad (MAA Bhd) is a financial holding company that provides financial services and insurance in South Asia, dominating in Malaysia while also establishing a presence in Indonesia and Malaysia.
Berkshire Hathaway: Under CEO Warren Buffet, Berkshire Hathaway manages many subsidiary companies, including Geico Auto Insurance, and can also provide financial planning help.
UBF Seguros: is a small Brazilian insurance company that provides agricultural and surety insurance.
Willis Group Holdings: As one of the world’s leading insurance brokers, Willis provides professional insurance services, reinsurance, risk management, financial and human resource consulting, and more in almost 120 countries.
The Travelers Company: One of the largest American insurance companies and the largest writer of US property-casualty insurance, The Travelers Company provides personal, business, financial, professional, and international insurance and ranks 106 on the Fortune 500 list.
Jun
27
Lloyds moves into Saudi Arabia with RFIB
Filed Under Insurance Company, Middle East, UAE Insurance | 4 Comments
RFIB Group, the international Lloyd’s insurance and reinsurance broker, has been approved for an intermediary license by the Saudi Arabian Monetary Agency (SAMA) to commence its insurance and reinsurance operations in the Kingdom of Saudi Arabia.
RFIB had been active in the Saudi Arabia insurance market for nearly three decades, but renewed regulatory efforts initiated by SAMA last year have required all foreign brokers operating in the Kingdom to attain a license.
Upon the successful receipt of the license, RFIB has now established a branch office in the Saudi capitol city, Riyadh. SAMA also required RFIB Group to select a Saudi Arabian business partner to set up its Riyadh unit. The company has partnered with Bassam Al-Dhabaan, which now owns 40 percent of the local business.
This move follows RFIB’s entrance into the Russian market earlier this year, with the establishment of new Moscow-based retail broker Anglo Russian Insurance Broker (AnRu). AnRu operates as both an insurance broker and an agent targeting corporate retail business. AnRu already has several agency contracts signed with leading local insurance companies, and is expected to rapidly develop in 2011, according to RFIB.
At the outset, RFIB’s new Saudi office will handle reinsurance business, but after its first year of operation the company intends to explore further opportunities in more specialized retail insurance businesses. The Saudi subsidiary will be headed by Anthony Harris, a former British Ambassador to the UAE who been working for RFIB in the Middle East since February 2006.
On the establishment of the new RFIB unit, Anthony Harris said in a statement: “RFIB has been handling reinsurance risks from the Saudi market for nearly 30 years, but our new insurance and reinsurance broking license is the final stage in our establishing a domestic presence in this important and growing market and we would like to thank SAMA for their help in working with us to achieve this license.”
RFIB have also appointed Naji Tamimi, a Saudi national previously at local firm Malath Cooperative Insurance & Reinsurance Company, as the new office’s deputy general manager. Currently the RFIB offices have four full-time staff members and will soon look to ramp up recruitment efforts. The company eventually intends to have at least 50 percent of its staff be comprised of Saudi nationals.
Adrian Spooner, RFIB’s managing director in the Middle East, commented on the company’s expansion strategy: “Naji’s appointment as Deputy General Manager has been invaluable in establishing our new office in Riyadh. His long experience in the market and extensive contacts will be crucial in growing our business in the Kingdom. We now intend to seek further recruits from the local market, working closely with our international team in London to aid staff training and development.”
Saudi Arabia’s labor market has become a sensitive political matter in the Kingdom. In the midst of regional unrest and a considerable 10.5 percent unemployment rate, creating job opportunities for Saudi nationals has become a priority. Various schemes are being discussed by the government that will evaluate the employment of native Saudis by private companies and differentiate between those that have achieved high ‘Saudization’ rates, and others who have not; with stricter limits on foreign work-permits a real possibility going forward. Saudi Arabia employs around 8 million expatriate workers, 6 million of whom work in the private sector.
While foreign employees may not necessarily be in demand, outside capital certainly is becoming more welcome in the MENA region. Insurance House, a recently launched Abu Dhabi based insurance company, agreed at a shareholders meeting to raise the limit on foreign ownership of the business to 25 percent of the company’s paid up equity share capital. The move comes just days after Insurance House’s public listing on the Abu Dhabi Securities Exchange (ADX).
Insurance House provides insurance services to Gulf businesses and individuals from its headquarters in Abu Dhabi, and branch offices in Dubai and Sharjah. It has a listed paid-up capital of Dh120 million (US$32.7 million). Last month the insurer raised an additional Dh66 million (US$18 million) as it sold 55 percent of shares to the public. The share issue was available exclusively to UAE nationals at a minimum subscription of 25,000 shares per investor.
Mohammed Alqubaisi, chairman of Insurance House, spoke admirably of the company’s development. “[The IPO] is another milestone for Insurance House. We will always strive for excellence and will endeavor constantly to create value for our existing shareholders. Additionally, we will give an opportunity to foreign investors to participate in our promising venture by building a successful and established relation with them,” he said in a statement.
The Insurance House’s decision comes after a similar vote last week by First Gulf Bank, UAE’s second largest bank by market capitalization, to increase foreign ownership limits from 15 to 25 percent. UAE firms are seeking an upgrade to “emerging-market” status from “frontier market” by international index provider MSCI.
The MSCI cited the UAE’s tight limits on foreign ownership of listed companies as one of the key barriers currently preventing an upgrade to the market’s status. An upgrade to emerging-market status could drive an increase in international investment in companies throughout the Emirates. The limit for foreign ownership of listed companies in the UAE is 49 percent.
At present, non-Gulf foreigners ownership accounts for 8.5 percent of equities listed on the UAE markets, with holdings of Dh12.4 billion (US$3.37 billion). UAE citizens hold around 91 percent of all equities and the remainder is made up by other Gulf nationals.
Opening up further foreign investment opportunities in Gulf companies is expected to continue, according to market analysts. As more firms go public on local indexes they will need to amplify the visibility of their stock and increasing outside ownership limits is an effective way to get more attention.
Companies Mentioned
RFIB
RFIB Group is an international Lloyd’s insurance and reinsurance broker. The company provides insurance for a variety of risks associated with both facilities and personal casualty. In addition, RFIB offers an assortment of reinsurance products; and acts as broker and consultant to other direct and reinsurance brokers. The company’s clients include corporations, banks, insurance and reinsurance companies, captives, groups and individuals. RFIB was founded in 1980 and is based in London, the United Kingdom with branches worldwide.
Insurance House
Insurance House was launched in May 2011. The company provides a wide variety of insurance products and services to businesses, groups and individuals from its headquarters in Abu Dhabi, in addition to branches in Dubai and Sharjah.
Jun
24
Insurance Australia Group (IAG), New Zealand’s largest general insurer with over one million customers, is focusing on a renewed expansion effort throughout Australia despite the recent losses associated with the devastating Christchurch earthquake and consequential aftershocks.
Last week in a press release, IAG managing director and CEO, Mike Wilkins, announced potential cost contingency plans when he revealed that the company had plans to increase premiums by up to 5 percent in New Zealand. While financially struggling competitor AMI may have to turn to a government bail-out in order to fulfill the policies of its 50,000 Christchurch customers, IAG is indeed gaining financial ground with the recent purchase of HBF’s Nonlife Insurance Business by CGU Insurance, a part of IAG. As Western Australia’s general insurance sector has grown to include more overseas, Eastern-state based, and online insurance companies, HBF, an Australian, non-profit health fund company, was struggling as a small, local company opposite the larger insurance giants. Instead of manufacturing insurance products, HBF will now focus on distribution. It is believed that the sale will transition smoothly, as most of HBF’s general insurance employees have been promised jobs in CGU’s Perth offices.
In addition to its renewed expansion efforts in Australia, IAG has also proclaimed its interest in Asia with expected expansions into China and India, following on the heels of companies such as Cigna Incorporated, which was recently granted a license for business in the Singapore health insurance market. Already present in India, with a 26 percent share of the Indian sector of the business that it owns with the State Bank of India, IAG hopes to increase its Indian footprint further by setting their sights on the equivalent of US$1 billion of gross written premiums by 2016. IAG also announced that the company has made “substantial progress” in discussions with a possible joint venture partner in China. In a statement by CEO Wilkins, he said that the company hopes that their efforts in Asia will contribute to “10 percent of the Group’s gross written premium by 2016.”
Another New Zealand insurance company has revealed plans for a major expansion this week; the country’s top rural insurer, FMG, has taken over Quadrant Insurance Group, producers of equine and livestock related insurance. A few hours after the announcement, FMG chairman Greg Gent referenced China and India’s growing populations in a press conference, saying that he thought the company had “a lot to look forward to” as “those developing nations are getting wealthier quickly and they need feeding”. New Zealand will surely profit from the high commodity prices that are on the rise throughout the agricultural market.
California-based company EZ-Cap also announced international growth this week. EZ-Cap is the top producer of health plan administration software, has “a strategic approach that integrates and automates all healthcare business processes for optimal efficiency” and is used to “streamline data exchange and transaction processing.” EZ-Cap will be partnering with GM-Medicare Management Ltd, a medical insurance information management business based in China, which will begin using the EZ-Cap technology in Shanghai. James P. Mason, CEO of Syner-Med, the US-based, joint venture partner of China’s GM Medicare Management, said that together, they are “able to offer a combination of services and support that are imperative to establishing a high standard of healthcare management throughout China.” The company hopes to continue to expand into more areas in China and to “help the Chinese worker to access the system fairly and appropriately.”
Meanwhile, at the International Insurance Society’s Annual Seminar in Toronto, Canada yesterday, directors from major companies such as Goldman Sachs, Morgan Stanley, and Deloitte Consulting USA, debated over the importance of mergers and acquisitions in today’s economy, and the effects on the companies after the merger or acquisition. Greg Locraft, executive director of Morgan Stanley, believes that money for a merger or acquisition would be better spent elsewhere, such as “retooling for organic growth, retiring debt, or buying back shares.” While Locraft (using historical stock data as evidence) pronounced that the stock performance of acquiring companies after the purchase was “abysmal.” John O’Connor, President and CEO of Endurance Services USA, which has “US$8.4 billion in assets and US$2.4 billion in shareholders’ equity,” has grown greatly due to M&A, with the acquisitions XL Surety, LaSalle Re, and Hartford Re.<br /
Although acquisitions have been extremely advantageous to O'Connor's Endurance Services USA, he cautioned companies to first find their footing in that specific market before deciding which companies to target, and to also ascertain that they would be able to manage said targeted companies. Locraft and Stephen Packard of Deloitte Consulting USA agreed that the values of insurers in America are currently extremely low, with Locraft noting that business may perhaps not be willing to be sold due to their low values ensuing from the deal, saying that “the P&C industry as a whole trades at 80 percent of book value.” It seems as though cross border mergers and acquisitions are on the rise, instead of local consolidation. Indeed, Tom Vandever, managing director of Goldman Sachs, expects that we'll be seeing an increase in the numbers of Western firms and foreign companies entering developing markets. Perhaps then, we will also see these Western firms and foreign companies cross over more and more, as evidenced by IAG, FMG, and EZ-Cap's recent expansion.
Insurance Companies Mentioned
Insurance Australia Group
Insurance Australia Group (IAG) provides personal and corporate insurance policies under several different brands, including NRMA Insurance, CGU, SGIC, SGIO and Swann Insurance. In addition to being the largest general insurer for Australia and New Zealand, IAG is expanding out of its home markets and looking to Asia.
FMG is New Zealand’s leading rural insurer, providing not only insurance, but also advice for those partaking in a rural lifestyle, whether it be for business or pleasure. FMG offers rural insurance for dairy, beef, and sheep farming, as well as domestic insurance for vehicles, lifestyle insurance, and business insurance, along with helpful risk assessment strategies.
HBF
HBF is Western Australia’s largest general insurance company, offering vehicle, home, and travel insurance. A non-profit company, HBF also contributes greatly to its community with events such as the HBF Run for a Reason and the HBF Freeway Bike Hike for Asthma.
Quadrant Insurance
Quadrant Insurance is the top provider of equine and livestock related insurance in New Zealand, offering protective packages for business, income, and leisure.
CIGNA
CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries are committed to providing medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, for 46 million people throughout the United States and in other communities around the world.
Jun
24
A new report published today by Standard & Poor’s (S&P), the foremost worldwide insurance rating and information agency, affirms the life insurance industry outlook in the Asia- Pacific region as generally stable, although it warns short-term investment risks may arise. S&P now assert that the pronounced economic development in the region combined with macro regulatory improvements regarding solvency requirements, risk management, and corporate governance, will lead to strong long-term growth potential for the life insurance sector in the Asia-Pacific.
In the study, Standard & Poor’s analyzed 11 life insurance markets in the Asia Pacific region, tabulating the insurance industry and economic risk scores, in addition to their market outlooks. The countries reviewed were Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan, and Thailand.
Few statistical changes were made as a result of this report. S&P upgraded Korea’s life insurance market outlook from stable to positive, due to increased profitability projections for life insurers in the country. Based on continued weak economic and investment forecasts for the market, Japan’s outlook maintained its negative status. S&P left the outlooks stable for all other markets examined.
Last month, S&P similarly assessed the performance of non-life insurance markets of Asia-Pacific. Japan and New Zealand’s non-life insurance market outlooks were revised to negative from stable, due to the expected impact the recent earthquakes there will have on reported earnings and capital margins. India’s market was criticized for questionable underwriting performances while China and Malaysia’s markets were upgraded from stable to positive to reflect their solid growth momentum.
Paul Clarkson, credit analyst for S&P, explained the agency’s appraisal of insurance development in the Asia Pacific: “We believe the region still has tremendous growth potential despite challenges. Risks to our outlooks include high inflation, withdrawal of reinsurance capacity, increased pricing and investment market volatility.”
S&P acknowledges that the Asia-Pacific region includes a diverse set of life insurance markets all across different stages of maturity. Despite these variances, the ratings agency has observed enough common positive economic, infrastructure and regulatory indicators to support the stable credit profiles of the region’s life insurance companies.
Despite the generally favorable conditions, the S&P analysis warns however that the current volatile investing environment poses a risk factor for the financial profiles of Asia insurers, as it does in other markets. A shallow investment market combined with a deficit in longer tenor assets to match liabilities will continue to challenge asset-liability management efforts in many Asian life markets, including Japan.
At Standard & Poor’s 27th Annual Insurance Conference 2011, industry analysts confirmed that life insurance has remained a sector facing undue pressure by the persistently low interest rate environment resulting from asset and liability durational disparity. These low rates have impacted the long-term returns and capitalization life insurers need to sustain their operations.
The level of volatility thankfully remains far below that occurring in the aftermath of the 2008-2009 global financial crisis, and S&P reports that multinational insurers have learned valuable fiscal lessons from the event. The further implementation of comprehensive risk management practices and oversight in the insurance industry should mitigate the lasting effects of financial market unpredictability.
Many central banks in the Asia-Pacific region have responded to rising inflationary pressures by raising interest rates. In S&P’s view, higher interest rates could have both positive and negative connotations on performance for the region’s life insurers. A rise in interest rates in mature life insurance markets, where ongoing negative interest spreads impact life insurer profitability such as in Japan, Korea and Taiwan, will result in narrowing the negative carry and improving company earnings. Meanwhile, higher rates could also lead to a spike in surrenders of fixed-interest policies and make liquidity management more complicated for insurers in Asian markets where such policies are popular.
S&P concludes that the solid operating fundamentals in both life and non-life insurance markets in the Asia Pacific can overshadow the challenges facing in the region. Economic development throughout the continent, coupled with positive investment performance and favorable overall operating performance has enabled insurers to strengthen their financial profiles and could rebuild balance sheets enough to weather the next market downturn. In addition to the above factors, S&P has given a stable outlook for most Asia-Pacific insurance markets because there is an expectation of continued strong premium growth due to low penetration rates within all emerging markets, and increased demand due to evolving customer needs in the mature insurance markets.
Companies Mentioned
Standard & Poor’s
Standard & Poor’s (commonly referred to as S&P) is a business branch of publishing house McGraw-Hill. Operating out of 20 countries, S&P provides the investment community with independent credit ratings on important financial vehicles such as stocks, municipal bonds, corporate bonds and mutual funds. In addition to its risk management, investment research and credit rating services, Standard &Poor’s is known for its indexes, in particular the S&P 500 index.
Jun
23
Earlier this month, The International Finance Corporation (IFC), an integral member of the World Bank Group, announced a partnership with Archimedes Global to invest US$3 million in equity in health insurance ventures in Georgia and Kazakhstan, aiming to eventually increase access to sufficient healthcare services throughout other emerging markets in Eastern Europe and Central Asia.
Georgia inherited from the Soviet Union an obtuse, highly centralized, state healthcare system, which the government has since struggled to afford and maintain since its independence in 1991. Subsequent market-driven reforms have led to some improvements in care but, due to very limited national resources, the utilization rate of healthcare services has dropped and the vast majority of expenditures are financed through out-of-pocket payments at the point of service without insurance. The Georgian healthcare system has thus faced several obstacles: quality of health services has stagnated, the standard on medical facilities and equipment is poor, and access to any healthcare services is an issue in rural areas, with availability and affordability of even basic medicines remaining a significant problem. For visitors and expatriates in Georgia, it is recommended that international health insurance be taken out prior to your visit.
The IFC’s six figure direct investment makes the organization a minority shareholder in Archimedes Health Developments, a newly formed company founded by multinational investor group Archimedes Global Ltd (AGL). The IFC’s outlay will be combined with US$2 million in additional financing from AGL. This injection of fresh capital will enable the new joint venture company to construct vital medical clinics throughout Georgia and to incorporate both firms’ expertise in developing viable healthcare services and health insurance businesses.
Speaking at the signing ceremony the Chairman of Archimedes, Doron Inbar, explained that the IFC’s contribution would also pertain to AGL’s health insurance and healthcare services in nearby Kazakhstan, and other new markets in Eastern Europe and Central Asia that the company may enter later.
“This investment marks an important step in our expansion in Georgia and within Eastern Europe and Central Asia, especially in countries that have the greatest potential for high-quality health insurance,” Mr. Inbar said, adding: “The validation of our business model by the leading international finance institution focused on private sector development will be instrumental to our efforts to expand our activities in larger markets and raise additional funding.”
The Archimedes staff in Georgia has substantial operational experience in the local healthcare sector, together with the institution’s sound technical skills related to insurance and health services. The IFC’s involvement will help mitigate financial risk against people seeking treatment and will also promote transparency and better business practices in the local health sector.
Ed Strawderman, IFC’s Senior Manager of Financial Markets for Europe and Central Asia, told reporters that this deal was an important venture for the organization and could be of great benefit to the people of Georgia. “Private health insurance is one of the integral elements of a mature insurance market. It leads to better quality, transparent, and efficient healthcare. This will be IFC’s first investment in health insurance and we believe it will help to further promote top international standards and attract other investors to the insurance market,” Mr. Strawderman said.
IFC is the largest global development institution focused on the private sector in developing countries. Georgia has been a member of IFC since 1995, joining in the aftermath of an economic collapse and mounting civil unrest following independence. To date, The IFC has approved nearly US$500 million worth of investments in Georgia, funding 36 projects across a wide variety of enterprise sectors. IFC is currently working through its advisory services to reform Georgia’s tax system to better benefit small businesses, and is also helping improve food safety standards among Georgian companies, at the same time increasing their international competitiveness.
The IFC has also been active in Brazil this month, signing an agreement with Brazilian insurer American Life to develop life insurance products targeting low-income families in the large South American country.
IFC will use its consultancy services to help American Life on planning the business, followed by a pilot and testing phase and further refining the product. The finalized insurance scheme is scheduled to be ready for 2012. The targeted microinsurance market in Brazil represents some 128 million people whose families cumulatively earn less than US$800 a month. Despite the tremendous size of this market, development of appropriate coverage schemes have thus far has been limited and general awareness of insurance products has not penetrated low-income Brazilian populations.
Loy Pires, IFC’s Brazil Country Manager, said the project met the IFC’s mission statement on promoting access to finance for low-income segments of society. “We acknowledge the importance of insurance products for low-income families in managing risks, and through the partnership with American Life, we expect to provide relevant contribution to the Brazilian microinsurance space and to develop innovative ways to reach the base of the pyramid,” Pires stated.
IFC also has plans to increase private sector participation in Brazil to strengthen infrastructure and public services, particularly in health and education. Other priorities include improving the investment climate in Brazil, helping small business enter the formal economy and strengthening their private sector competitiveness, and promoting socially and environmentally sustainable business practices.
Pedro de Freitas, Head of American Life concluded that the challenges present in the Brazilian microsurance market would prove a daunting enough task, “American Life is a Brazilian insurance company that offers life insurance to niche segments not covered by most large insurance companies. Building a strong presence in the microinsurance space is now among our high priorities.”
The Brazilian insurance market is the largest in South America, and offers the potential to become a more prominent international insurance market across all disciplines. Recent economic stability, positive credit trends, and regulatory reforms that have stabilized the currency and promoted domestic savings, have all contributed to growth across the insurance industry in Brazil. In spite of continued regulatory obstacles, large multinational insurers cannot ignore the market’s size and growth potential and will be looking to invest themselves further in Brazil, and other emerging economies, to offset the continued static performance of the established North American and Western European markets.
Companies Mentioned
IFC
The International Finance Corporation (IFC) is a member of the World Bank Group and is headquartered in Washington, DC. The IFC is the largest global development institution focused on promoting private sector investment in developing countries. Established in 1956, The IFC now has 182 member countries which collectively determine the organization’s policies and approve investments.
Archimedes Global Ltd
Archimedes Global was founded in 2007 as an investment vehicle targeting health insurance developments in emerging economies. Today Archimedes owns three separate insurance companies in Kazakhstan, Greece and Georgia with plans to expand further into Eastern Europe and South Asia. In addition, the company provides health services that complement insurance companies’ services.
American Life
American Life Companhia de Seguros is a life insurance company focused on offering niche insurance products to undeserved consumers in the Brazilian insurance market.
Jun
22
China’s National Social Security Fund has acquired an 11 percent stake in the People’s Insurance Co of China (PICC Group) for RMB10 billion (US$1.55 billion) to become the sole investor ahead of the insurer’s planned dual listing in Shanghai and Hong Kong.
In a statement issued on Tuesday by PICC Chairman Wu Yan, the nation’s second largest insurer heralded the involvement of the National Social Security Fund (NSSF), claiming that their RMB10 billion investment would buy about an 11 percent stake and had moved PICC a big step closer to their planned IPO. PICC is seeking a public listing in order to address their declining solvency ratio, restructure the company and to help generate the necessary capital required for the rapid expansion of its subsidiaries, including their life insurance and property & casualty divisions. Wu added that PICC will “prudently” time the initial public offering, which has met requirements for dual A-share and H-share listings, but still awaits approval by the China Insurance Regulatory Commission (CIRC).
In April, PICC Group posted their annual report, revealing a 37 percent year-on-year increase in revenues to RMB264.7 billion (US$40.9 billion), with premium income of RMB246.4 billion (US$38.1 billion). PICC and its subsidiaries reported a record net profit in 2010 of RMB5.2 billion (US$804 million), representing a noteworthy annual increase of RMB3.4 billion (US$525 million), 2.9 times that of 2009’s figures. As of 31 December 2010, the total assets of PICC and its subsidiaries totaled RMB201.7 billion (US$31.2 billon) with shareholders’ equity amounting to RMB24.8 billion (US$3.8 billion). The Group’s property & casualty subsidiary is the largest non-life insurer in China and is aiming to make underwriting profits again this year, after premium rates rebounded and improvements to the company’s claims management processes have been implemented. PICC’s life insurance business is the sixth largest in the Chinese market in terms of premiums written.
PICC’s fast growth has however diminished its solvency ratio, an insurance company’s available capital relative to their premiums written. The CIRC sets a 100 percent requirement by listing. Market observers assert that the NSSF’s injection of new capital will improve PICC’s solvency margins and enable them to remain stable prior to going public.
After the deal is signed off by the CIRC, PICC will present their listing plan to the China Securities Regulatory Commission. Analysts familiar with the deal predict that the Hong Kong and Shanghai listings will occur in the fourth quarter of 2011 at the soonest, as it will take time for PICC to go through all the necessary procedures.
The planned investment was first announced in a joint press conference on June 15 by the NSSF and the Ministry of Finance, the previous exclusive owner of PICC. At the time however, no details were disclosed regarding the timing or size of the stake the US$130 billion pension fund would hold.
The Chinese State Council initially approved the PICC restructuring and listing plans in 2009, the first year the integrated insurer turned a profit. Under Chinese law, domestic companies are required to have at least two shareholders before they may go public. PICC’s decision to select a national pension fund as a strategic investor should aid the listing process. The NSSF has close times with other government agencies and industry regulators and should enable the insurer to better address the regulatory obstacles on its way to going public.
New China Life Insurance, the nation’s third-largest life insurance firm with RMB93 billion (US$14.38 billion) in premium income for 2010, has also recently applied to the Hong Kong stock exchange for a dual listing. The insurer is aiming to raise up to HK$31.2 billion (US$4 billion) in fresh funds by the end of the year, according to industry reports.
The CIRC has also been active this week in granting approval for a wholly owned Chinese subsidiary of Liberty Mutual Insurance Co., permitting the American insurer to increase its registered capital in the country by US$17.5 million, its fourth such capital increase since 2007. Liberty Mutual, which first entered China in 1996, has around 72,000 automobile policyholders in the country. The company has expanded to four branches and needed to raise capital to meet the country’s regulatory solvency requirements.
Total written premiums in China’s insurance market reached RMB1,452.8 billion (US$221.4 billion) in 2010, a year on year increase of 30.4 percent. Increases in per capita income, further urbanization, an improved social security system, enhanced distribution reforms and service level optimization coupled with stronger insurance awareness in the population, are all positive factors contributing to the brisk development of the domestic Chinese insurance industry and a demand for its products. As interest rates rise, profitability for insurance companies will also see further improvement.
The Chinese insurance market has been seen as a lucrative investment opportunity for many large multinational insurance companies as well as investors from the financial-services sector. However, while the emerging superpower is technically open to foreign insurers participating in their market, they are faced with more restrictions and a more active regulatory authority than in many other countries. Foreign insurance companies have normally found success in China through investing and operating as joint venture partners alongside major local insurance and finance conglomerates.
Some major current multinational Chinese insurance company joint ventures include the Sun Life Everbright and the Aviva-Cofco partnerships. Other notable foreign insurers with partnering agreements in China include Zurich and Generali, with associations involving both New China Life Insurance and China National Petroleum Corporation respectively.
Earlier this month, Bermuda-based private insurance holding company, Starr International acquired a 20 percent stake in the Chinese property insurer Dazhong Insurance Co Ltd.
This followed Goldman Sachs successful purchase of a 12.02 percent stake in Taikang Life Insurance Co Ltd, China’s fifth-largest insurer by premiums, earlier in the year. The acquisition gave the US Investment bank a long-sought-after foothold in the world’s largest insurance market.
Merger and acquisition activity throughout the rest of Asia is set to continue at a fervent pace in 2011 due to stronger investor confidence in the market. Insurance business growth in Asia is expected to outperform that of other more mature markets, with India, Indonesia and China leading the way.
Insurance Companies Mentioned
PICC
People’s Insurance Company of China (PICC) is a state-owned holding company in the PRC, founded in 1949, that sponsors its subsidiaries: PICC Asset Management Company Limited and PICC Property and Casualty Company Limited (PICC P&C) among others. PICC P&C was established in 2002 and is now China’s largest non-life insurer. The insurer remains the designated agent within the People’s Republic of China for most major international insurance companies. In 2005, PICC announced a life-insurance joint venture with Sumitomo Life Insurance Co called PICC Life Insurance Co., which is now the sixth largest life insurer in the country.
New China Life
New China Life Insurance Co.,Ltd (NCI）has headquarters in Beijing and was established in 1996 It is a large national insurance company, with products including traditional protection products, bonus products as well as the products that have a strong financial management function. With sustained, healthy and harmonious development of the company, the brand value of NCI is a valuable asset.
Liberty Mutual Group
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.
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