China may soon open its doors to foreign auto insurance companies. China is the world’s largest auto market and insurance coverage in mandatory for all drivers in the nation. The country has been closed to foreign companies for decades, but China’s prominent place in the auto market may soon change that fact, according to Jin Jianqiang, chairman of the Insurance Association of China. The change may come as soon as 2012. China’s auto insurance market is valued at $31 billion currently. The market is dominated by Chinese insurance companies, which…
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Italy turns to the insurance industry to help with crippling debt crisis
Italy is on the verge of a financial meltdown, which may have dire ramifications for the global economy. Investors and financial institutions have begun casting doubt on Italy’s ability to survive a financial disaster, and now the government is turning to the insurance industry for help. Italian officials are looking to adopt disaster insurance to help mitigate the impact of a potential economic catastrophe. The country’s debt – more than $2 trillion – could mean that it is beyond rescue, even for the insurance industry. The insurance industry in Europe…
Read MoreChina State Council may discuss allowing foreign auto insurance companies into the country
Since 2009, China has been able to boast a profit in its auto insurance sector, as it experienced a tightening on the regulation of price controls that turned it around after years of losses within the insurance industry as a whole, as 70 percent of its profits were from that sector. Now, China’s State Council is thinking about taking things a step further, with the consideration of a plan that would permit some foreign insurers to sell their own liability policies for the first time within the country, increasing the…
Read MoreBarclay’s launches new insurance-linked security product for the global insurance industry
Barclay’s Capital, a worldwide investment bank based in the UK, has launched a new initiative that is aimed at providing the insurance industry with added protections against natural disasters. The financial institution will begin supplying insurance-linked securities that will embolden the insurance industry against catastrophes. The new service will help placate the concerns of investors who are growing leery of the insurance industry’s constant struggle with disastrous storms and other events. Barclay’s believed that the insurance-linked security products will help the industry cope with any financial turbulence it may experience…
Read MoreNew insurance group targets life and medical insurance in Qatar
Q-Life & Medical, a newly formed insurance group based in Qatar, has targeted a promising market in the region. Initially part of Qatar Insurance Co., Q-Life & Medical was formed around the need for life and medical insurance in the nation. According to company officials, the market for life and medical insurance in Qatar is untapped, which translates into a unique opportunity for tremendous growth. Whether the company can capitalize on this potential growth, however, is yet to be seen. As of now, the company is not offering any insurance…
Read MoreGlobal insurance industry may be in for change as regulators come together to draft new rules
In the wake of major natural disasters and allegations of corruption, the world’s insurance industry is set for change. Insurance regulators from several nations have begun drafting new rules to present to political leaders in time for the 2012 G20 summit .These new rules are being tailored to ensure that the actions that spurred the 2008 economic recession cannot be repeated in the future. Both the International Association of Insurance Supervisors (IAIS) and the Financial Stability Board (FSB) are playing a major role in drafting the new rules. Overall, the…
Read MoreLeading European property and casualty insurers saw premiums increase of 5.2%
Spain-based MAPFRE has released the results of its 7th annual survey of European insurance companies and has ordered them based on their writing of gross premiums, determining that all of the top insurers were able to both raise their revenues from premiums and achieve successful outcomes that were largely based on activity outside their own countries. The survey specifically examined non-life insurers, and the report published by MAPFRE stated that the top ten insurance companies saw an increase of 5.2 percent in their premiums, bringing them to $283.39 billion in…
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