Transatlantic insurance market gets shot in the arm from US, EU deal

european union EU american USA united states transatlantic insurance market

The United States and European Union have come to an agreement to boost this international marketplace. On Friday, the United States and European Union came to an agreement to shrink legal and capital hurdles to the transatlantic insurance market. The goal was to give a boost to both the insurance and reinsurance marketplaces. The transatlantic insurance and reinsurance markets are currently worth a combined $3 billion. This transatlantic insurance market accord is one that has been under negotiation for over a year. It is a follow-up to an agreement that…

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Despite disasters, global insurance industry sees only modest rate hikes in 2011

This year, the global insurance industry saw more than $100 billion in insured losses due to natural disasters. Normally, losses are accompanied by rate increases, but many insurers have not been raising premiums as much as analysts and consumers had expected. The fact that insurers have issued only modest rate hikes throughout the world has had a profound impact on the investment business. Investors are now having trouble figuring out which companies are good targets for the 2012 fiscal year, as many have emerged from 2011 catastrophes will healthy capital…

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China is likely to allow foreign companies into its mandatory auto insurance marketplace

The Insurance Association of China’s chairman has announced that the country will likely be opening its doors to the largest auto market in the world to make it possible for foreign companies to enter into the mandatory auto insurance marketplace in 2012. Currently, this auto insurance market of $31.5 billion is entirely led by insurance companies from China, for example, Ping An Insurance and PICC Property and Casualty Co., but regulators are working to bring in a greater amount of competition. Jin Jianqiang, in Taipei, explained that insurers from other…

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Chartis insurance group seeks quality over quantity when it comes to growth

Europe’s debt crisis has not daunted Chartis, a division of AIG that operates in the property and casualty insurance market. The company continues to seek opportunities for growth despite the economic turmoil currently faced by a number of nations in the region. While lucrative opportunities seem to be in abundance, the insurer is taking a “quality over quantity” approach. CEO Peter Hancock notes that this strategy will help the insurer protect itself from industry hype in markets that may be more volatile in the future than they are today. In…

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Too big to fail insurance corporations should be governered by different rules than the banking industry

The term “too big to fail” rose to prominence in the wake of 2008’s economic recession. Much like the effects of the recession, the phrase has lingered and has come to define certain aspects of the business world. Too big to fail is a categorization often attributed to massive corporations that have complex and expansive global business operations and deep ties with financial institutions. If these businesses were to fail, there may be disastrous implications for the global economy that go well beyond the problems born during the 2008 recession.…

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Insurance risk research shows industry struggling with growth and reserve risks

Aon Corporation’s capital adviser and global reinsurance intermediary, Aon Benfield, has released a report containing the results of its annual study – called the 2011 Insurance Risk Study – which is used by the industry to benchmark underwriting risk, and for modeling through the risk parameters it provides. This research – which is the sixth that has been published by the company – offers volatility benchmarks for underwriting, which are used by the industry’s professionals in economic capital modeling, such as chief risk officers and actuaries. It also provides the…

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Insurance company coming to the Middle East to offer coverage to Palestinians

A new insurance company is being formed in the Middle East to cater to the Arab sector. Businessmen from Israel and Palestine have come together to create the company, which will compete in Israel’s insurance market. The as-yet-unnamed company is currently ramping up funds to meet Israeli regulations. Observers expect that the company will be fully operational by the end of next year. Thus far, the company has garnered a wealth of support from the Arab community. At launch, the company will offer elementary insurance as well as car and…

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Puerto Rico’s physicians threaten to discontinue their service if not compensated for their work by insurers

Physicians in Puerto Rico are taking a stance against the government and several insurance companies after they were refused payment for treating the poor. Doctors are threatening to discontinue their treatment of more than 1 million patients with Medicaid coverage if they are not compensated appropriately for their work. Governor Luis Fortuno has been attempting to mitigate the frustrations of the island’s physicians, but his efforts have been met with staunch resistance. Resolution of the issue, he says, lies in the hands of insurers. The government has announced that it…

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Emerging markets show promise, according to Lloyd’s

Lloyd’s has been making a significant effort to improve access to overseas markets after seeing promising opportunities for international trade among emerging economies. Though Lloyd’s has been very active in this pursuit, it also published an article on its own website which requested improved cooperation among the participants in the markets, itself, and the managers within its own country, which would allow for further improvements to the current opportunities. It was acknowledged by Lloyd’s that regardless of the financial crisis worldwide, a number of emerging markets within Latin America and…

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The cost of reinsurance in New Zealand set to triple starting July 1

As the rebuilding of Christchurch, New Zealand, continues months after a disastrous earthquake struck the nation, insurance companies are going to have a hard time finding reinsurance deals as prices are set to triple by July 1st, according to S&P’s analysts. The rise in reinsurance rates is due to the extent of the damage done in New Zealand by the initial quake and its subsequent aftershocks, which are still occurring today. As the aftershocks continue, so too does the damage worsen, driving reinsurers to raise their rates in an effort…

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