Insurance Europe outlines “vital” need to remove key re/insurance access barriers

Insurance Europe has underlined the importance of removing market access barriers between European re/insurers and the countries Argentina, Brazil, Canada, India and Indonesia.

The governing body believes this action is needed to help reduce protection gaps and avoid dangerous concentrations of risk in these jurisdictions.

Furthermore, avoiding a build-up of climate-related risks in any one jurisdiction and facilitating the sharing of natural catastrophe risk across markets is described as more important than ever.

In Argentina, foreign re/insurers are said to face several barriers, including restrictions on cross-border reinsurance, compulsory investment constraints and foreign exchange restrictions on reinsurance payments.

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参数化主权巨灾债券是“一带一路”的保险方式

通过与“一带一路”倡议相关的项目获得中国投资的中亚和东欧国家,应使用参数化主权巨灾债券来确保自身免受自然灾害的风险。

这是保险连结证券(ILS)和主权风险转移专家基里尔·萨符拉索夫(Kirill Savrassov)的观点。

萨夫拉索夫指出:《中国的“一带一路”倡议对中亚和东欧的全面保护方案提出了更高的要求》。

《中国将数百亿美元投入了该地区的基础设施建设,但实际上,其中连一个项目也没适当地投保物理伤害的险,尽管该地区面临着地震和其他自然灾害的高风险》。

在乌兹别克斯坦,哈萨克斯坦或塔吉克斯坦等国家,问题不是地震是否要发生,而是何时要发生,并且其毁灭力量多大。

自然灾害会破坏中国通过“一带一路”倡议帮助该地区发展的许多基础设施项目。如果建造后这种项目因地震而摧毁,那么东道国仍将欠缴中国的贷款,但是不会从基础设施投资中获取收益。

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The BRI and the need for its transit infrastructure protection against natural disasters

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Countries in Central Asia and Eastern Europe that have been recipients of Chinese investment via projects associated with its Belt and Road Initiative (BRI) should use parametric sovereign cat bonds to insure themselves against the risk of natural disasters.

Belt and Road Initiative has created an even greater need for comprehensive protection solutions across Central Asia and Eastern Europe as China has spent tens of billions of dollars in infrastructure across the region but practically none of it is properly insured against physical damage, despite the region being at high risk of natural disasters with earthquakes in particular.

In countries such as Uzbekistan, Kazakhstan or Tajikistan it is not a question of if an earthquake will hit, but when—and how devastating it will be. In Western Balkans that is prone to earthquakes itself there is an additional threat of massive floods as climate change consequences.

La BRI et la protection des infrastructures contre les désastres naturels

PUBLICATION ORIGINALE ICI

Les pays d’Asie centrale et d’Europe de l’Est qui reçoivent des investissements chinois dans le cadre de l’initiative « Belt and Road » (BRI) pourraient être intéressés par l’utilisation d’obligations souveraines paramétriques pour se prémunir contre les risques de catastrophes naturelles.

L’initiative « Belt and Road » a créé un besoin important de solutions de protection complète en Asie centrale et en Europe de l’Est, car la Chine a investi des dizaines de milliards de dollars en infrastructures dans ces régions, mais la plupart de ces projets ne sont pas correctement assurés contre de possibles dommages, bien que  ces régions présentent des risques de catastrophes naturelles en particulier des tremblements de terre.

Dans des pays comme l’Ouzbékistan, le Kazakhstan ou le Tadjikistan, il ne s’agit pas de savoir si un tremblement de terre va se produire, mais quand et à quelle intensité il se produira. Les Balkans occidentaux qui sont eux-mêmes sujets aux tremblements de terre, sont aussi sous la menace d’inondations massives en raison du changement climatique.

Protecting the Belt & Road

ORIGINAL PUBLICATION HERE. PDF VERSION HERE

China’s Belt and Road Initiative, the economic project which aims to recreate the ancient Silk Road that linked Europe to Asia, needs protecting. ILS could provide the perfect solution, as Kirill K. Savrassov, chief executive of Phoenix CRetro Reinsurance Company, tells Bermuda:Re+ILS.

In September a 5.8 magnitude earthquake shook Istanbul, triggering the evacuation of schools and public buildings and damaging buildings. The same week, a 5.8 magnitude event killed 38 people and caused massive damage to infrastructure and roads in north-eastern Pakistan.

For Turkey it represented a stark reminder of how bad these events can be. In 1999, a 7.4 magnitude earthquake in the western part of the country killed more than 17,000 people.

Protectionist trends a “significant barrier” for European re/insurers: Insurance Europe

ORIGINAL PUBLICATION HERE

The use of protectionist measures in emerging countries remains a “significant barrier” to the ability of European re/insurers to place business in these regions, according to Insurance Europe.

In a recent report, the European insurance and reinsurance federation highlighted concerns about protectionist trends in a number of high growth potential markets.

For example, in Indonesia, Insurance Europe pointed to mandatory cession requirements, particularly in light of the establishment of Indonesia Re, as well as a worrying life insurance tax issue.

It claimed that local compulsory cessions diminish the possibility to diversify risk, creating high local exposure in the event of large losses, such as from natural disasters.

Growth in protectionism & geopolitical tensions to impact re/insurers: Marsh

ORIGINAL PUBLICATION HERE

Rising geopolitical tensions and protectionist sentiments, in combination with ongoing trade disputes, and resulting in increased uncertainty and risk for multinationals such as re/insurers, according to Marsh, particularly for those with direct foreign investments.

Marsh’s Political Risk Map 2019 rated more than 200 countries and territories on the basis of short and long term political, economic, and operational stability to provide insight into where risks are most likely to emerge and where multinationals should deploy financial resources.

Using data from Fitch Solutions, Marsh observed a transition to a more multi-polar world order of protectionism that is likely to continue through 2019, with isolationist practices rising in some countries and temporarily slowing the progress of globalisation.

CIS re/insurers struggling to withstand volatile market conditions: A.M. Best

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Insurers and reinsurers in the Commonwealth of Independent States (CIS) are struggling to remain profitable in the face of significant geopolitical instability and regulatory changes, according to a report by A.M. Best.

The rating agency noted that, whilst the overall economy for the CIS improved in 2018 compared to prior years, challenges remain for the insurance sector, with more than a third of companies receiving long-term issuer credit ratings of ‘bb+’ or below.

A.M. Best rates a number of companies based in Kazakhstan, Russia and Azerbaijan, and monitors insurance and economic trends in other CIS countries, which include Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Open global trade remains the way ahead

ORIGINAL PUBLICATION HERE

Senior official calls on nations to ‘inject new strength into the world economy’

China has called for an open global business environment and reiterated its commitment to further encourage outbound investment from capable domestic companies in accordance with international market principles and practices, a senior commerce official said on Tuesday.

Qian Keming, vice-minister of commerce, said the rise of protectionism in some countries has not only caused tightened security reviews of foreign investment, but also had an impact on Chinese businesses operating overseas.

Страховые Ценные Бумаги обладают огромным потенциалом в рамках инициативы “Один пояс, один путь” (ОПОП)

ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ. Версия в PDF ЗДЕСЬ

При ожидаемой стоимости в триллионы долларов и планах по развитию в 68 странах на 3-х континентах, инициатива «Один пояс, Один путь», естественным образом привлекает внимание всех участвующих сторон, как в государственном, так и частном секторах. Asia Insurance Review побеседовал о способах трансфера рисков в данном проекте с Кириллом Саврасовым, Главным Исполнительным Директором специализированной Бермудской компании Phoenix CRetro, фокусирующейся на развитии Страховых Ценных бумаг в регионе ECIS (Западные Балканы, Южный Кавказ, Восточная Европа, Центральная Азия и Турция).

Китайская инициатива «Один пояс, Один путь», является одним из крупнейших инфраструктурных проектов в современной истории человечества. По словам Кирилла Саврасова, руководителя Phoenix CRetro: “В силу масштабности и географического разнообразия, проекты имеющие отношение к ОПОП, безусловно, сталкиваются с многочисленными вызовами и рисками, и для их основоположников и для участников»

Текущие оценки по претворению проекта в жизнь варьируются от 900 млрд. до нескольких триллионов долларов, при основой финансовой нагрузке и работами, осуществляемыми государственными предприятиями.