All articles by LII editorial
LII editorial
Solvency II threatens viability of small and medium insurers
Well intended it may be, but the European Unions Solvency II regulatory regime for insurers could reek havoc among small and medium-sized insurers, warns the Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE). Although the new Solvency II regulatory regime is not intended to restructure the European insurance market it currently risks doing just that,” stressed AMICE president Asmo Kalpala.
Allianz Saudi Fransi on a strong growth trajectory
Saudi Arabian insurer Allianz Saudi Fransi (ASF) is to proceed with a rights issue to raise an additional SAR125m ($33m) capital to position itself for implementation of what its chairman, Yousef Hamdan Al-Hamdan, termed a “rapid development plan ASF was founded in 2007 as a joint venture between European insurer Allianz and Saudi Arabian bank Banque Saudi Fransi, an affiliate of French bank Crdit Agricole
UK annuity rate squeeze set to continue
Annuity rates in the UK are declining and are likely to continue doing so for some time, predicts Craig Fazzini-Jones, a director at mutual insurer Marine and General Mutual Life Assurance Societys MGM Advantage unit
Second life insurer enters Uganda
As part of its strategy to expand its reach in Africas life market, South Africas second-largest insurer, Sanlam, has launched a life insurance business in Uganda Though Sanlam has operations in eight other African countries outside its home market, the Ugandan unit, Sanlam Life Insurance Limited, is the first to carry its brand name. Commenting on the move into Uganda, Sanlams CEO Johan van Zyl said the decision was prompted by the scope for growth in the countrys life insurance industry.
China’s government lauds Manulife-Sinochem
In recognition of a job well done, Manulife-Sinochem Life Insurance has received an “Excellent Organisation” award for 2009 from Chinas State Council National Economic Census Commission at the recommendation of the China Insurance Regulatory Commission (CIRC) In 1996 Manulife-Sinochem, a joint venture (JV) between Canadian insurer Manulife Financial and state-owned Chinese chemical giant Sinochem Corporation, became the first Sino-foreign JV life insurance company licensed by the CIRC in China
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Axa’s Asian ambitions suffer setback
Axas Asian growth strategy, a deal that would have given it full control of Axa Asia Pacifics non-Australasian operations, has been dealt a death-blow by Australias competition commission However, the door is open for Australias largest life insurer, AMP, to renew a bid for its Australian rival. Axas goal of gaining full control of Axa Asia Pacific Holdings (APH) non-Australasian operations has been dealt its second blow, this time by the Australian Competition and Consumer Commission (ACCC).
Mitsui Sumitomo takes first small step into China’s life market
Mitsui Sumitomo Insurance (MSI) has increased the scope of its involvement in Chinas insurance market with the purchase of a 7% stake in Sinatay Life Insurance) for CNY127m ($18.6m) The purchase marks by Japans third-largest general insurer marks its entry into Chinas life market
Going gets tougher for foreign players
More than a decade of spectacular growth and the prospect of more to come have attracted 27 foreign life insurers to establish ventures in China But with few exceptions foreign players have made little progress in gaining a share of a market dominated by domestic giants such as China Life and Ping An. Though far from grinding to a standstill in 2009, growth in Chinas life insurance industry slowed appreciably with the China Insurance Regulatory Commission (CIRC) reporting that premium income increased by an uncharacteristically modest 10.9% compared with 2008 to CNY826bn ($121bn)
Another small US insurer rescued
National States Insurance has found itself among a growing number of small US insurers to be rescued from the brink of collapse following the Missouri Department of Insurances (MDI) decision to place it into rehabilitation In a statement, MDI director John Huff termed National States financial condition as being “hazardous.” Under rehabilitation, the MIL assumes management of an insurers continued operations and attempts to correct problems, failing which it petitions a court for the insurers liquidation
Health reform proves a boon to fraudsters
President Barack Obamas signing of the controversial Health Care Reform Act into law in the US in March has brought with it a new problem in the form of bogus health insurance schemes. Insurance regulators across the country have their hands full coping with the increase in fraud, with the Indiana Department of Insurance alone having issued cease-and-desist orders against seven companies purporting to be legitimate health insurance vendors According to the New York State Insurance Department, bogus policies being marketed include those claiming that consumers have only a limited open enrollment period and falsely state that consumers will be left without affordable health care if they do not buy now