AM Best forecasts more M&As in Commonwealth Independent States

ORIGINAL PUBLICATION HERE

Insurers working across the Commonwealth Independent States (CIS) of former Soviet Russia can expect to see further consolidation in their sector, according to the latest special report from AM Best.

The report said mergers and acquisitions (M&As) have been driven in part by companies trying to gain the “critical mass” they need to operate efficiently in a challenging market. Companies will “seek to improve efficiency and strengthen their business profile” through consolidation, it said.

The report identifies various pressures for re/insurers from evolving regulations to limited options for investment and fluctuating currencies.

ILS a requirement to remain competitive as a re/insurer: JMP

ORIGINAL PUBLICATION HERE

The use of insurance-linked securities (ILS) structures and access to third-party capital are essential requirements now for a reinsurance company to remain competitive in the evolving and challenging marketplace, according to analysts.

Mergers and acquisitions (M&A) in reinsurance has clearly evidenced the appetite of major insurance and reinsurance players to embed the access to alternative capital within their traditional business models.

ILS expertise is now seen as a key requirement, as evidenced by a number of hires over recent years where we’ve seen expertise in the capital markets side of reinsurance brought into some very traditional re/insurance companies.

Protectionism a “lose-lose situation”: Swiss Re’s Jerome Haegeli

ORIGINAL PUBLICATION HERE

Protectionism is a “lose-lose situation” and its impact on both global reinsurance players and policyholders alike is not positive, according to Swiss Re’s Chief Economist Jerome Haegeli.

In a recent conversation with Reinsurance News Haegeli spoke positively about the current state of the reinsurance market, but warned against the trend of protectionism and its role in what he described as a global economy lacking resilience.

“Our hope is that multilateralism prevails because it means a common set of regulatory rules which are consistent, fair and predictable,” stated Haegeli.

Reducing Indonesia’s protection gap: Protectionism versus the protection gap

ORIGINAL PUBLICATION BY DAVID BENYON HERE

Destructive earthquakes hitting Lombok and Sulawesi in 2018 have highlighted the scale of the protection gap facing Indonesia’s re/insurance market. In October, the country’s insurance regulator used its industry rendezvous in Bali to call for ideas to kickstart further development of the country’s insurance sector.

However, rules limiting overseas re/insurance market access remain an obstacle to reducing the catastrophe prone country’s protection gap. International reinsurers are among those keen to play their part as stakeholders in closing the protection gap in Asia’s developing markets, Indonesia included.

Параметрические катастрофические облигации лучший вариант

ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ

Параметрические катастрофические облигации могут помочь странам Юго-восточной Европы, Центральной Азии, Кавказа, Содружества Независимых Государств и Турции (ECIS) справится с недострахованностью катастрофических рисков, сказал Baden-Baden Today Кирилл Саврасов, CEO Phoenix CRetro, Бермудской компании, специализирующейся в Страховых Ценных Бумагах (ILS) .

“С низким охватом страхованием (менее 2%), перестраховочным протекционизмом и растущими последствиями изменения климата, странам ECIS действительно необходимо обратить внимание на трансфер риска стихийных бедствий с использованием всех доступных альтернативных инструментов, и однозначно, рынку Страховых Ценных Бумаг здесь есть что предложить,» говорит Саврасов.

Swiss Re highlights rising global protectionism

ORIGINAL PUBLICATION HERE

As global protectionism continues to rise there’s potential for a longer-term decline in trade, which in turn will negatively impact marine and trade credit insurance premium growth, according to reinsurance giant Swiss Re’s inaugural edition of its Economic Insights series.

The report, titled Protectionism on the rise, and here to stay, states that although protectionism is on the rise, to date, the impact on the global economy and insurance has been negligible.

No new major trade barriers but significant obstacles remain: GRF

ORIGINAL PUBLICATION HERE

The Global Reinsurance Forum (GRF) has announced that no new major trade barriers have been added to the latest edition of its Reinsurance Trade Barriers and Market Access Issues Worldwide list, but remains concerned that significant barriers are still in place worldwide.

The GRF explained that trade barriers restrict the ability of reinsurers to freely conduct business on a cross-border basis, limiting their capacity to spread risk globally and to prevent domestic concentrations of risk.

Requirements for reinsurers operating on a cross-border basis to collateralise or localise assets, as well as restrictions on foreign ownership of subsidiaries, can also prevent the competitive spread of risk across borders, according to the GRF.

Russian State Reinsurance Company is accused by Russian parliamentarians of corruption in reinsuring their risks through brokers

ORIGINAL PUBLICATION HERE

The Russian State Reinsurance Company (JSC “RNPK”) was established in 2016, during a period of increasing anti-Russian sanctions, in order to insure companies against the risk of sanctions: the purpose of the company was made very clear at the time.

However, providing such insurance to Russian companies has become increasingly difficult, primarily because of poor management. Out of 70 full-time staff members of the RNPK, there are, allegedly, only a total of about 5 professional reinsurers who are able to assess the risks competently, and to pick out the appropriate reinsurance company for the client.

In Berlin, China’s Li promises to open markets further

ORIGINAL PUBLICATION HERE

BERLIN, July 9 (Reuters) – China’s Premier Li Keqiang said China would open its domestic markets further for foreign investors, promising that German companies would not be risking their intellectual property if they set up shop in the country.

Speaking at a news conference alongside German Chancellor Angela Merkel after talks in Berlin, Li said China would open up its insurance and bonds markets further, and added that he hoped German companies would manufacture more there.

China did not demand technology transfers of German companies operating there, he added, and nor did China permit violations of intellectual property.

China’s opens up markets further by reducing some foreign ownership curbs

ORIGINAL PUBLICATION HERE

HONG KONG, June 28 (Reuters) – China’s government announced on Thursday a long-awaited list detailing the reduction or removal of foreign ownership restrictions across a wide range of industries spanning from financials to grains.

The National Development and Reform Commission, which is China’s state planner, said the new measures will take effect on July 28, according to the list posted on its website www.ndrc.gov.cn.

Other sectors that will see more opening include banking, insurance, agriculture and automotives, the state planner said. (Reporting by Lee Chyen Yee in Singapore, Twinnie Siu in Hong Kong and Beijing; Editing by Toby Chopra newsroom)