Posts Tagged ‘Asia Pacific’



January 25th, 2016

Developments in Asia Pacific: Indonesia

Posted at 1:00 AM ET

The average balance of payments in Indonesian reinsurance transactions over the past five years has been in a deficit of IDR5.65 trillion (USD455 million) per year. This has been a point of frustration for the Indonesian government. As such, the Indonesia Financial Services Authority (OJK) has instructed insurers to retain more risk and to reinsure more business with domestic reinsurers, including the recently-formed state reinsurer, Indonesia Re, to “improve and optimize capacity in the country.” The OJK has also encouraged all domestic reinsurers to obtain an international rating in order to improve competitiveness with foreign reinsurers. However, it is anticipated that high cessions to other unrated, domestic companies will increase credit risk charges and pressure capital adequacy ratios.

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January 20th, 2016

Developments in Asia Pacific: Overview, Part II

Posted at 1:00 AM ET

Other countries, such as the Philippines and Indonesia, have instituted rules that may, conversely, impede the development of a healthy, profitable insurance market. The Indonesian regulator’s recent steps to reduce capital outflows, with a focus on reinsurance premiums ceded to international reinsurers, remain highly debated and will be explored in greater detail later. The Philippines, in addition to a risk-based capital (RBC) framework, has instituted a minimum paid-up capital requirement (starting in 2006 and revised in 2013) that increases every two years and will result in a PHP2 billion (approximately USD44 million) minimum threshold in 2020. This will put minimum capital levels in the Philippines well above those of more developed markets, including Australia, Japan and Singapore. The policy applies uniformly across the industry regardless of premium volume, line of business or geographic scope and therefore its impact is more strongly felt by smaller carriers that will most likely be forced out of the market or into the arms of larger players. The Philippines Insurer and Reinsurer Association (PIRA) has been outspoken against the minimum capital requirement and stated a preference for a standalone RBC metric.

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January 19th, 2016

Developments in Asia Pacific: Overview, Part I

Posted at 1:00 AM ET

Asia Pacific is a diverse mix of countries encompassing nearly one-third of the earth’s landmass and more than one half of its population. Given the broad spectrum of economic and regulatory sophistication across the region, the approach to insurance regulation has varied on a country-by-country basis as each regime adapts solvency principles to their own needs and political realities.

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January 6th, 2016

Chart: Regional Property Catastrophe ROL Index, 1990 to 2016

Posted at 3:26 PM ET

The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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November 2nd, 2015

Guy Carpenter Report Evaluates (Re)Insurance Regulatory Advancement in the Asia Pacific Region

Posted at 3:30 PM ET

Guy Carpenter today published an assessment of the development of solvency requirements and regulatory initiatives that are impacting (re)insurers in the Asia Pacific (APAC) region. According to the report, these developments are driven by four key motivators, including the need to improve resiliency post-catastrophic loss; to increase oversight in a post-Great Recession world; to follow best practices from the banking and international insurance sectors; and finally, to satisfy domestic political pressures.

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November 1st, 2015

In 2015, Growth and Innovation Demonstrated in Asia Pacific, according to Guy Carpenter Report

Posted at 3:15 PM ET

Guy Carpenter today published a new report finding that prevailing market conditions continued to allow buyers in the Asia Pacific region to achieve favorable pricing, terms and conditions as capacity exceeded demand.

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October 12th, 2015

Regulatory Challenges and Opportunities for (Re)insurers, Part IV: Asia Pacific

Posted at 1:00 AM ET

In Asia, solvency requirements are increasing in many territories. Hong Kong and Singapore are developing new standards around risk and capital regulations. China is developing an approach similar to Solvency II via a three tiered approach like the “three pillars.”

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September 12th, 2015

Guy Carpenter Assesses Implications of Current Market Dynamics on Pricing Environment

Posted at 8:30 PM ET

2015-mc-panel_20152Challenging market conditions due to abundant capacity, the ongoing influx of new capital and limited loss experience, continue to put pressure on the reinsurance sector, while recent M&A activity is adding a new dynamic to the mix. This is according to the panel of speakers at the eighth annual press briefing held at the Reinsurance Rendez-Vous 2015 in Monte Carlo, by Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies.

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September 12th, 2015

GC Videocast - Rendez-Vous Press Briefing 2015 (James Nash) Capital Flow from Asia to Europe

Posted at 8:30 PM ET

2015-mc-solo_james_nashFocusing on the Asian market, James Nash, CEO of Asia-Pacific Operations, Guy Carpenter, highlighted the increasing flow of capital from the region into Europe, Lloyd’s and the US. He said: “Asia is perceived as a growth opportunity and is attracting capital from mature markets, but it is actually Asian capital seeking opportunities overseas which is the headline story this year. In 2015, Asia-Pacific has been a net exporter of insurance and reinsurance capital through M&A, with Japan and China leading the charge into Europe, Lloyd’s and the US. In the year to September 2015, outbound deals totaled USD20 billion compared with inbound deals of only USD849 million.” Looking ahead, he added: “We expect the M&A trend to continue as insurers, reinsurers and funds in the region pursue growth and diversification by going West, but we also anticipate a larger number of intra-region deals and also capital from the West coming East.”

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August 4th, 2015

Super Typhoon Soudelor – Taiwan/China

Posted at 1:19 PM ET

super-typhoon-soudelor-sm-21Super Typhoon Soudelor continues to threaten Taiwan and China. The summary below follows the 12 UTC advisory of the Joint Typhoon Warning Center (JTWC).

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