Australia will add a new round of private health insurance premiums

Posted on April 4, 2012 by aoohu

Recently, the Australian health minister Tanya Plibersek has announced the federal government has approved a new round of private health insurance premium increase plan, expected in 2012, Australia’s private health insurance premium will be increased by 5.06% on average. The growth rate for personal medical insurance policy of Australia holder, it means that every year will have to increase a $70 spending, and to establish the medical department published in Australia in 2011 average medical insurance data on the foundation of the families, this ratio means more than $150 a year to pay. Of course, because every private insurance company and each insurance policy of different types, so each policy holder to pay each year more specific the amount of money is not the same as.

Australia is expected to 2012 the average growth of insurance cost will be greater than 2011′s 5.56% growth speed slightly lower (0.5%), but before the government management and its average period will be low compared by almost 1.5%. Every Australian health insurance company after the adjustment protection charges will be published as soon as possible in the department of health’s official website, when consumers can get from the web more detailed information.

In Australia, private health insurance market is tightly regulated, because the federal government in Australia for premium level to conduct regular monitoring and review, thus ensuring a Australia’s insurance company has enough money for insurance claims. Every year, the Australian health insurance company must provide detailed to the federal government proof that in order to further develop their own business and adjust the industrial produced the relevant expenses at the same time, the steady market operation, whether they plan and how to plan to adjust their medical treatment insurance premium. Once these rates with precise calculation, test and the federal government’s approval, they will be from next year’s April 1 start the application of the system.

HCF is Australia raised insurance cost of the largest amount of insurance company, with Australia to health insurance rate adjustment of the public, from April 1, HCF will begin to set to plan a 5.94% increase in insurance cost; Second only to the NIB is the growth rate HCF of 5.5% and 5.2% of the Westfund, above 3 companies will more than the average growth rate; In some other scale of the big company in, BUPA and Australian Unity, their growth speed slightly below the average growth rate of 4.91% and 4.55% respectively; State-owned company Medibank private insurance company is Australia’s biggest insurance company, about a 30% share of the market, it has announced will increase about 4.7% of the insurance cost. According to Australian health insurance consulting company iSelect measurements, the insurance cost increase will in 2012 for the Australian health insurance company to get about a $780 million extra income, each insurance company will be in the next few weeks will be the latest charge standard told clients.

Minister Plibersek very supports the insurance cost increase plan, he thought that in 2012 rate has increased costs is the past four years the lowest, and these costs are still lower than the past year doctors and medical institutions to charge for patients after inflation of values. According to Australian authorities expected, the Australian health insurance policy holders from Australia in the cost of the insurance company to pay the income gained by the compared with last year will increase 7.6% to about a $13 billion ($14 billion), and therefore must be to insurance costs for the corresponding adjustment to ensure that the insurance company has to continue to develop debt-repaying ability. In fact, when people pay more for private insurance costs, of course they can also get more in return. People get earnings estimates will continue to increase, and expected to reach 2013 in, people from medical insurance company pays in the cost of the availability of income is expected to more than 9%, “it is obviously higher than the average level of insurance expenses.” Plibersek minister added.

For years, the Australian medical department has been committed to strengthen financial supervision, the health minister further sure to insurance company to put forward this year increased the cost of insurance for the related departments responsible evaluation. In the policy worked out, insurance company to 34 the rising costs of insurance has 24 was sent back to review, or to reduce cost for the increase of the proportion, or provide additional evidence to prove that the original insurance cost of adjustment of rationality. This makes the 7 home insurance company reduced their insurance costs, thus help about 4 million australians won a lower insurance cost growth, this part is the underwriter occupy the private health insurance buyers of 38%.

Compared with the multinational insurance company, Australia’s private health insurance company more tend to in a narrower range for operation and management, and they pay more attention to maintain the stability of accept insurance and long-term survival. The insurance company must have a prudent supervision requirements above the minimum capital level, so as to ensure they can meet to policy-holder responsibilities and in Australia could continue operating. Therefore, to allow these insurance company gradually increase the premium level, so that they can have more money to meet any adverse events, the increased cost of medical treatment, and meet their investment fund business, and finally into its policy-holder to improve the quality of services.

Private health insurance in Australia and is not a kind of compulsory insurance danger to plant, the country’s health care system has both public insurance institutions, also have private insurance institutions. The Australian health insurance, established in 1983, provides for Australia involving a wide range of free medical services and other related services, in order to ensure medical institutions and ensure the normal operation of the medical insurance plan, Australia also specially made national medical welfare programs. Overall, Australia will each year 8.5% of its gross domestic product for the national health care, that number with other high income of developed countries is basically the same.

In the past few years, in order to reduce the rapidly ageing population of Australia to its public health care system cause financial burden and structural burden, the Australian government has taken a lot of positive and effective measures to encourage more people to buy Australia private health insurance. In the nationwide private health insurance system, all australians can from the federal government get 30% of the private health insurance subsidies, and in order to encourage young people to buy insurance, the government also specially introduced a lifelong health insurance policy. In the past 10 years, the various forms of government awards and the government subsidies measures to promote the many australians really buy private health insurance, since 2007, around 1 million people start to buy private health insurance. Up to now, has about 10.4 million Australian bought private health insurance, it is a history on the records of the highest number, which to a great extent by Australia the whole the development of the insurance industry.

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Brazil insurance’s prospects is good

Posted on April 4, 2012 by aoohu

According to emerging market consulting company of BRICdata latest survey, the next four years, Brazil insurance industry is bracing health insurance, life insurance and the strong growth in the life insurance business.

BRICdata previously released titled “Brazil health insurance industry business investment opportunity: to 2016 analysis and prediction of the report. The report says, Brazil’s personal accident injury insurance and health insurance market in the past 10 years growth is strong, the main reasons include: the country’s continued economic development; Insurance depth increases, medical insurance products and services flourishing; Per capita disposable income level; Consumer health care, security protection, enhance the overall savings consciousness, etc. As more companies will health insurance as employees need to welfare, insurance sales growth, take the forehead already super average level.

The report says, Brazil health insurance industry total market value from 2007 reais ($5.47 billion) to 2011 reais ($8.43 billion), the compound annual growth rate of 11.27%, and realize the double-digit growth. Health care insurance products and services by 0.34% of the insurance depth rose from 0.54% to, the domestic policy quantity is rising. Health insurance industry new policy in value from $2007 in 69.14 million reais ($38.62 million) rose to 2011 in 88.42 million reais ($49.39 million).

Based on these data and comprehensive consideration of the other market factors, BRICdata predict that, by 2016, Brazil accident injury insurance and health insurance market value will reach to 16.2 billion reais ($9.05 billion), the next four years will achieve compound annual growth rate of 16.32%. The company further forecast, in 2012, the new health insurance policy will pay the premium will be 95.66 million reais ($53.44 million) in 2016 and the 116.34 million reais ($64.99 million), of which the market share of the group policy gained the most. Based on the above data, Brazil will become one of the world’s largest insurance market.

The report also points out, the Brazilian health insurance industry according to the market development to make some adjustment, to make full use of the high-speed economic growth opportunity. One of the challenges facing is, medical treatment charge that the general rise in Brazil to undertake health insurance enterprise risk compensation. In recent years, the continued global inflation, protecting a treatment for advanced technology and medicine and technology increasing demand, caused the Brazilian national medical costs soaring. In order to solve these problems, in recent years the Brazilian government health insurance regulators, the national compensatory medical treatment safeguard committee has made the relevant provisions, aim to establish market to disclose the standard and medical insurance pricing rules, and improve the ability of the whole compensate pays insurance enterprises. Now it looks, these measures can effectively regulate and risks of enterprises in a cost burden is uncertain, but move itself really encouraging.

In addition, the Brazilian health insurance industry structural problems still exist. The health insurance industry by public health insurance company leading, in 2011, the eight public health insurance company of health insurance coverage throughout the year amount of 70%. In contrast, the capital restrictions and price competition, and other factors, the private health insurance companies in the size and strength far. BRICdata said, in order to improve the market competitive power, many private health insurance company has been through introducing foreign funds, and famous overseas insurance group joint venture to promote enterprise development.

BRICdata report released early with an independent report in Brazil the life insurance market development prospects and analysis of the problem is very similar. The independent report titled “Brazil in 2015 to serve: the main trend and opportunities”, the report said, the past 10 years, Brazil the healthy development of life insurance market, mainly because of domestic of strong economic growth, brokerage channel extension and car insurance,, construction risk business growth. Despite the growth going fast, but still faces many serious problems, including the efficiency is low, the nucleus is poor and interferes with the rules of market competition and regulatory barriers. Among them, the regulatory barriers, particularly prominent private insurance supervision bureau recently put forward a proposal of strengthening the risk management mechanism proposal, which included a relevant domestic reinsurance commands a controversial, in the short term to private insurance for enterprise, regulatory environment worse and worse. In addition, Brazil is going to face challenges not is external, the European debt crisis continue to evolve, the American economy could appear into recession, this is likely to Brazil’s economy and industry planning adversely.

In the 2015 years of this report, BRICdata prediction Brazil life insurance market premium income from 61.3 billion reais ($35 billion) rose to 2015 in 98.8 billion reais ($56.4 billion), with an average annual growth rate of 12.3%. The rapid development of life insurance market driving factors include: the macro and micro solid economic basis, the supervision of the limit of relaxation, foreign insurance enterprise participates in the market competition and the people, especially young generation of ginseng protect consciousness enhancement. BRICdata forecast, personal extension annuity products will become the main force of the insurance sales, formal bank service channel development will bring about bank insurance business development.

BRICdata reports show that Brazil is now Latin America’s biggest insurance market, is among the world’s 17 th. Brazil now 70% of the working population is not ginseng protect, so on both domestic and foreign risk for enterprises, there was a huge market potential. Overall, Brazil will be the next 10 years one of the fastest growing insurance market, the improvement of income level and consumer risk management consciousness will enhance the huge market demand has. If, in addition, can change their risks enterprises in business management pattern, make full use of domestic huge market potential, Brazil insurance will become the world’s top competitive stage.

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Australia QBE insurance group in the United States the mortgage insurance business management is faced to litigation

Posted on April 4, 2012 by aoohu

Australia QBE insurance group in the United States the mortgage insurance business management faced litigation. A few days ago, Florida a Pope accepted by twenty thousand the plaintiff participation in the class action lawsuit, called for a “compulsory insurance” terms, QBE insurance group and Wells Fargo bank will be involved, charges are excessive charges.

According to the “compulsory insurance” clause, homeowners if cancel housing insurance or allow the housing insurance failure, they will be forced to pay much higher than the premium cost, because Banks deducted a policy cost of investment to be passed on to homeowners head. In the lawsuit, the plaintiff Wells Fargo bank charges on their implementation of the compulsory insurance QBE, some people are forced to pay $14 times more than the same premium.

QBE says, they do so only in order to standardize the market, make the reasonable price reflect market risk. In 2011, a survey by Minneapolis 40000 homeowners prosecution jpmorgan chase home loans company collective action has won, and HuoPei $9 million, forced the plaintiff accused bank to buy unnecessary flood insurance. In New York state, in view of the “bank and insurance is the overlap between for” the question, the investigators are 31 Banks investigation. Therefore, the plaintiff’s lawyers said they planned to fight the case in other states.

The area is in global profit QBE group one of the highest area, thanks to MaoChengBao premium rose 63%, its profit rose 24% last year to $440 million.

Recently, the United States government took over the beauty of the room to lenders say they will for loans that the terms of the insurance make changes to significantly reduce the cost of homeowners, taxpayers. The United States consumer financial protection agency will also be enacted this year mortgage service rules, to make new rules compulsory insurance products.

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South Korea SFMI continues to lead the life insurance market

Posted on April 4, 2012 by aoohu

By March 31 in fiscal year 2011, samsung fire sea insurance company (SFMI) HanGuoFei life insurance market is still in the first place, but the second competition has narrowed.

Korean press association reported, SFMI in April 2011 to January 2012 the accumulative total of the premium income of 12 trillion won ($10.6 billion m), or 26.5% of the total market. The second modern sea industry fire insurance company (HMFI) of the total premium income for 7.53 trillion won, accounting for 16.5% of the total market. However, the rate of SFMI year-on-year drop 0.4%, and HMFI the original rate of 0.4% a year growth achieved and thus the two original rate the gap of 10%.

Small firms are also go all out after the industry bigwigs. The eastern insurance market share grew 1.2% to 16.2%. LIG insurance market share grew 0.5% to 14.4%.

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Chinese embassy in wisdom embassy: Chile earthquake there is no Chinese reports of injuries

Posted on April 4, 2012 by aoohu

China’s ambassador to Chile embassy on March 25 late reports, has not received the Chinese in Chile’s earthquake in the region the horse casualties of the report.

China’s ambassador to Chile embassy said, after the earthquake, the Chinese embassy in Chile embassy immediately start emergency mechanism, the first time with China’s ambassador to Chile major institutions, Santiago and near the epicenter area QiaoTuan main contact, at present has not received the Chinese people in the earthquake casualties of the report. Given the recent Chile earthquake frequent activity, as far away as strong, China’s ambassador to Chile embassy in wisdom institutions and remind the overseas and ethnic Chinese for safety protection.

The Chilean government spokesman ZhaDeWeiKe 25 days late, and said, because the researchers observed ocean tour occurrence systole signs, the Chilean national emergency office decided to the region’s horse coastal people evacuated implementation.

ZhaDeWeiKe said, although Chile navy hydrology and oceanic administration out after a tsunami may, but according to the horse’s tour of the coastal areas of the personnel observation, the ocean “gradually contraction” signs, it is often thought to be the precursor of the tsunami. Is it safe to the region, the government will implement preventive coastal people evacuated.

The local time 25, when 19 37 points, Chile’s horse the region, tal card the Richter scale.

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Mexico 7.6 magnitude quake damaged five hundred houses

Posted on April 4, 2012 by aoohu

Southern Mexico 20, a powerful earthquake, ZhenDu magnitude six to seven, preliminary news that the disaster area at least 500 buildings between damaged, the bridge has come tumbling down. And President Obama’s eldest daughter maria reported in Mexico, the dahaka state on a holiday, at present the safety.

Mexico at 12:00 noon local time in-02 points of an earthquake, vibration for less than a minute, the epicenter of the quake was located GeLeiLuo states mei, peck city northeast 52 kilometers, focal depth of 10 kilometers.

When an earthquake, the capital Mexico City have a strong aftershock, authorities say, have damaged five hundred houses, in the suburbs, a pedestrian overpass come tumbling down, pressure destroyed a bus, rescue workers rushed to the site, took the injured to hospital. In the inside parliament, senators are to suspend the meeting, evacuated to the outdoors.

Residents and office staff are obvious shake, hundreds of people frightened, emergency evacuation outside, they say, have never felt so strong vibration.

The part of the phone service and power outages and the airport is closed for short, about 40 passengers stuck in an airport transportation system inside, but later were rescued.

In coastal Acapulco, the school’s teachers and students also want to evacuate, local hotels and building has severely damaged, but visitors appears very troubled.

President felipe calderon said, although the earthquake intensity, the earthquake caused damage to not too serious. President Obama’s eldest daughter maria reported in Mexico, the dahaka state on a holiday, at present the safety.

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Aig will by no means sacrifice profits to change the size of the market

Posted on April 4, 2012 by aoohu

Get rid of AIG haze, aia is again to vibration Wells. March 21,, China CEO of aig CaiJiang under the command team executives to reporters interview, revealed in 2011 China international contrarian send force “report card”, and 2012 years of promoting continuously innovated.

In 2011, the premium market share in scale and under pressure, and most of the life insurance company the product structure of present to share out bonus risks one-sided phenomenon. Just finished team of executives change aia actually contrarian transformation, to increase security in sort of special coverage. “At present, the security of our products in more than 50% of the total premium.” CaiJiang told reporters.

In scale and profits in front, aig chose the latter. It is a security strategy, let aig is going to China in the whole of 2011 bottomed, contrarian hair force-respectively in the total weighted premium income (TWPI), new business value (VONB) and operating profit after tax (OPAT), etc to hit high, which measure the value of life insurance company connotation new business value soar 50%, security products new single rate 21%.

China international with the power of a contrarian background is: since last year, tightening monetary policy and banking channel financial products in big lots, mainly the boy to silver products sales had a big extrusion effect. Relative to character, safeguard the product’s market pattern invulnerable. This let aig to taste the rewards. China thus becomes the international group’s global 15 branches of the fourth largest market, and the third largest market catch up with the trend of Singapore.

After a good beginning, aig in 2012 will deepen the reform of the diversified marketing channel, send force the silver, electric pin two channels, and continue to speed up to two or three of the layout of the city. For our newspaper put forward “development business to scale the silver, or profit” this problem, aig chief market BaoHong sword the China made clear, will for different types bank, different types bank customers, tailored insurance plan, but the silver the strategy of the process, still holding security strategy, although may encounter some difficulties in the early, but aig more on long-term value.

And in the pin field, CaiJiang says, this year will increase investment, hope in the next year or two do sufficient scale. “China’s insurance electricity pin market actually just start, with a lot of potential, especially through the electric pins to sell products, for some customers are concerned, they hope through the phone for some easy to safeguard model products, the market potential.”

In China international executives team seems, no matter is a risk, or silver insurance, electricity sales channels, to the profit on the road went on, we must stick to security strategy, market share does not represent profit, so “never to sacrifice profits to change the size of the market”. And the safeguard model structure of products mainly planted, also can make the domestic life insurance in the future let go of book interest rate tendency, will not get much influence.

For the domestic insurance company in recent years is generally the stock market to the nose, and the exposed “carry” the excessive dependence on the profit model, CaiJiang made clear, the profit pattern of China international future will focus on death, and less on the poor fee, in the accelerated growth of further reduce the cost. As for the investment strategy, then concurred, long-term investment return value, rather than short-term speculation.

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Japan AIJ scandal pension bomb detonated

Posted on April 4, 2012 by aoohu

Japan AIJ investment consultant company forgery investment report events, has become one of Japan’s largest financial scandal, is now under investigation. AIJ management about 200 billion yen ($2.4 billion) pension, reportedly has almost all disappear, 84 have pensions agency entrusted AIJ investment management, the relevant enterprise employees up to 880000 people, all was destroyed.

Japan’s health ministry are considering what measures to avoid similar AIJ scandal out again, including restricting pension funds for any investment consultant company investment a percentage, and financial regulators are considering the pension funds to go to a professional investor class, improve the legal framework for the protection of them. Financial hall of Japan has all 265 house guest operating assets management company opened an investigation. Politicians are considered by some standards, such as limit high-risk investment and protective measures, to support many ramshackle endowment funds.

But for a large number of pension funds, new rules and regulation won’t be of much help, these pension funds have been facing huge funding gap, unable to reach as high as 5.5% of the year return rate target, the target in decades ago when the fund established is very feasible, but now in interest rates at zero and deflation s, becomes unattainable.

According to information, 27 trillion (signs) of the small and medium-sized enterprise pension assets in Japan, most of the 595 home by pension cooperative management, about one 6 has been health ministry included in the financial condition critical. In March 2011, the financial gap add up to 630 billion yen.

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The Dutch deal with natural disasters risk sharing mechanism

Posted on April 4, 2012 by aoohu

Climate change push the high natural disaster risk

The Netherlands is the world around the great sea largest country, 70% of its land and property are located in below sea level. Although most advanced the sea with the dam interception system, but faced with bad weather situation tsunami, the Dutch coastal area every year will experience different still the property damage and casualties. Not only that, because the low-lying, soil moisture content fully, the heavy rainfall weather led to rivers flooding, fields flooded cases is also difficult to be completely resolved. Therefore, because of its geographic location of the reason, the Netherlands has been suffering from the tsunami, heavy rains and floods and other natural disaster risk.

So not only present situation, face global warming pattern, the future of the Dutch face natural disasters more optimistic. Some scholars in the scene of the study that concluded that, by 2050, the Dutch climate conditions will worsen overall trend. In the comprehensive consideration in a summer and winter of data, the Dutch overall climate appropriate scene test every year in heavy rain the probability of occurrence in a will rise 3.2%, overall the sea level will rise 12 to 25 centimeters; And in the overall climate greenhouse effect remarkable scene test, every year, the probability of occurrence in a heavy rainfall is will rise 6.4%, annual average temperature of 2.5 degrees Celsius, sea levels rising 20-35 centimeters of above. For the Netherlands this special sea level low country, rising sea levels and the climate is so that the temperature rise of the tsunami and the flood risk greatly improved, and heavy rains improve crops for the probability was also an influence. The present situation and the future is expected for the Dutch government, insurance companies, personal risk sharing cooperation, and risk guarantee system planning presents new challenges.

Deal with natural disasters level 3 sharing mechanism

The Dutch deal with natural disaster risk sharing mechanism according to the risk degree is divided into three levels. Facing the lowest layer small loss disasters, owing to considering the cost of claims of economy and should, therefore, and shall be borne by the individual enterprise, such as small to plant crops, hail damage, through the personal and the enterprise to bear, the social efficiency can realize the maximization.

And for most cases of floods, the loss caused by sudden climate change, in the insurance company within the scope of the claims by insurance protection means, in the operation of the commercial insurance competition market sharing mechanism with insurance for general individual and enterprise to bear part of the loss. Not only such, reinsurance companies and financial market risk sharing function also play a role accordingly, insurance company through general insurance policy for the premium. On the one hand, to the reinsurance companies seek reinsurance; On the other hand, in the financial products and perfect the supervision system of reasonable and effective in the financial markets investing money to hedge original underwriter of potential risks, and increase the profit.

For insurance company solvency can’t ensure that part of the huge potential losses, the government in 1998 passed the disaster Compensation Act (Calamities Compensation Act-WTS 1998), passed the bill to spread the arrangements of catastrophe and large accident Compensation for damage. Disaster compensation bill through to the victims of the disaster is to offer a more systematic response. WTS 1998 Shared a business shall not accept insurance because of the floods and earthquakes in legal recognition on the cause for the catastrophe of property, expected to happen outside of the great floods, fresh water loss and purpose, the government set up the payment funds can compensate victims of economic loss and relieve their financial pressure.

Level 3 sharing mechanism is also discussed

From 1950 to 2005 years, the Dutch face catastrophe risk L/I ratio (total loss/can be insurance compensation losses) fell from 30.06 to 3.27. L/I ratio can be objective directly reaction one country to share their disaster insurance to the economic loss caused by share. From the above L/I can find the ratio analysis, the Dutch insurance industry for domestic catastrophe disaster losses as the risk management role in improving, deal with huge claims pressure, the government as the final buy a single dilemma can get some relief.

But, because insurance companies in their own interests, for flood disaster insurance are relatively cautious. For example, in 1998 happened by rainfall flood disaster, the Dutch were suffered from 408 million euros of domestic economic losses, with 80% of the loss from crop loss, the WTS and make 280 million euros (pounds) damage from the government compensation, but most of all, causing other individuals and enterprises only by their own undertake, the insurance compensation strength and coverage is still small. In the face of such situation, the Dutch insurance association encouraging property insurance company to increase the catastrophe insurance coverage, especially against the flood, because heavy rainfall under the influence of construction, furniture and equipment property insurance.

Heavy rains disaster risk sharing case

The Dutch commercial insurance company for a strong rainfall insurance regulations have a quite strict explanation, the Netherlands insurance association for the insurance extent of liability extreme precipitation for the definition of 24 hours 40 mm precipitation within 48 hours to 53 mm, etc., and the research has shown that the future under the weather and climate conditions, rainfall of up to 40 mm/day cycle may be from the current 3 years reduced to 1.5 years happen again. This means that as the increased risk of heavy rains, insurance company facing the future demand will continue to increase insurance, risk compensation and corresponding enlarges.

Interestingly, the Dutch Agriver insurance company in 2004 launched a guarantee slip holder and the underwriter collaboration of insurance system, and its operation for a matrix of a focus on agricultural products to pay reparations for the fund losses, if the years of fund spending more than premium income, guarantee slip holder may pay the six times its own insurance premium money to the fund share of additional, in exchange for the government’s economic compensation. In addition, because of the particularity of the agricultural insurance, and insurance company accept insurance threshold of more demanding, 24 hours the requirements of the precipitation will increase to 75 mm, 48 hours to 100 mm precipitation mention. According to the unpredictable nature of catastrophe losses, the government and regulators have to do more than just after the construction of the compensation mechanism of disaster, the Dutch government is implemented the many incentives to reduce the influence of the heavy rains disasters, such as improved water management system, enhances the domestic water and a pump technology. But these measures can only reduce the affected after the extent of the losses, to avoid the heavy rain for crop plants hit degree, the government needs to through the disaster loss compensation funds and insurance industry of capital operation to encourage improved crops farming methods, cultivating new crops. In addition, insurance company also has encouraged farmers to drop risks power, such as Aquapol the company was introduced to encourage farmers to buy advanced drainage measures to cut spending policy premium.

The Netherlands as advanced western economies, the catastrophe risk to the mechanism has a lot we can be used for reference, mainly is the government and commercial original insurance companies, reinsurance companies collaboration between the mechanism and incentive measures to policy-holder. For long huge catastrophe risk exposure, the Netherlands gradually groped for a way to adapt to the development of their own strategy to risk sharing system. With the global climate inevitable worse, for China also faces all sorts of different degrees of the catastrophe risk, and in the foreseeable future risk loss caused by will continue to increase, how to improve the insurance company for natural disasters will cover, improve the government to catastrophe risk sharing management participation penetration degree, is a long-term problem with the test.

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Vietnam determine insurance development goals

Posted on April 4, 2012 by aoohu

Recently, the Vietnamese government through the 2012-2020 years of insurance market development strategy. The plan aims to promote the development of Vietnam insurance market, so that in the 2010 of Vietnam’s share of the GDP is 1.6%, and on the basis of gradually increased to 2% in 2015-3%, and hope that by 2020 up to 3%-4% of GDP.

Vietnam in 2007 membership in the world trade organization, a number of measures to promote the country’s financial market liberalization, so in recent years, Vietnam’s insurance market been a rapid development, signing the total amount of the premium every year by about 20% of the speed of growth. Although have made such great progress, but compared with many southeast Asian neighbours, Vietnam’s insurance still prefers small scale, development degree also insufficient. Insurance industry to growth forecast for 2012 cautious attitude. Many insurance companies are pointed out, the growth rate does not expect is too high, about 5%-10%. Inflation and macroeconomic stability is considered as the next year’s key problems.

In order to realize the insurance market in the overall development targets, the government of the strategic planning lists the Vietnam next few years for insurance company should be the efforts of the several specific industry index. According to the Vietnam business news of an article to disclose, in the next few years, Vietnam insurance company must gradually improve finances, and to fulfill customer to domestic insurance compensation and insurance payment obligations. In 2010, Vietnam insurance pay about $556 million in damages and additional insurance under the contract of insurance gold, compared with the previous year grew 19%. With the continuous development of the insurance market in Vietnam, the insurance company must risk investment portfolios and customers with its obligations in sync. In view of this, the government plans to request, domestic insurance company spare capital size to 2015 to double, to 2020 improve 4.5 times.

In order to meet the southeast Asian countries increasingly diverse insurance needs, especially the rise of the disaster, property and global supply chain risk, in 2012-2015, the primary goal of the insurance market is to make Vietnam safer, more sustainable and efficient. According to the strategy, the Vietnamese government plan over the next three years to the country’s insurance industry gradually restructuring, particular way is: for those who are the efficiency is low, the country’s financial support of the insurance company for business integration, and according to international best practices improve domestic industry management and service level. Besides working to promote restructuring, will also bring new products and services into markets, including export credit insurance, and the next two years the rural small insurance plan pilot.

Vietnam the central government hope, in the 2016-2020 years, the country’s insurance management agencies and the major private insurers can work with some peculiar industry mechanism and policy, which would strengthen the insurance company management and operation ability. The government in its development strategic plan are listed in the expectation see improvement three key areas: raise capital adequacy ratio, risk management and practice in Vietnam in the insurance company to achieve greater of fairness and greater transparency. In addition to ascend capital level and business behavior, Vietnam’s insurance is also expected to to 2015 state budget contribution realize doubled, to 2020 tax contribution improve 4 times.

Some economists often put Vietnam’s recent economic stagnation due to a number of large state-owned enterprise, securities companies and insurance companies, and Vietnam, the central government has recognized that it is necessary to restructure them. The country’s insurance market fragmented, mainly by the low efficiency of public ownership enterprise and helpless monopoly of small companies. According to the development strategy and the solution of the problem will be 2012 and 2013 of the government’s agenda a priority. Vietnam Treasury have taken some preliminary measures to solve this problem, for example, for a market standards to Vietnam insurance company evaluation and inventoried, in order to stabilize the market. From the beginning of this year, the ministry will put insurance companies are divided into four different categories, the need for support from the good enterprise to should be integrated or completely closed losses insurance company, for each category with certain management and control measures.

At present, Vietnam has 43 home insurance company, including 29 home non-life insurance companies and 14 home life insurance company. Because of the growth potential of premium industry, is expected to soon there will be more insurance enterprise to enter the market. The fierce competition and the heavy burden of claims (especially car insurance) with the South African life insurance industry, high operating costs has now made local insurance company to realize the profit of the insurance business. The country’s four big non-life insurance companies are gradually in market share lost to some more small scale, with most of the competition with foreign background, Vietnam has many disaster risk, including strong typhoon, fire and flood loss and threats, also pushed to buy the non-life insurance reinsurance demand.

Though Vietnam’s life insurance industry is not like the life insurance market that many participants, but the country’s population characteristics tends to younger, per capita income is low, these factors have so far to weaken the life insurance, and other traditional insurance and savings products demand. But, in the past 10 years, foreign insurance companies have to Vietnam to the life insurance market, in order to sell these locals still knew very little about the insurance products, they also bring large amounts of capital and expertise. Ginseng because the population less than 10%, Vietnam is obviously huge potential for growth in the asia-pacific region one of the countries. Those who expect to achieve success in Vietnam the insurance company, now must begin to comply with the new industry guidelines, also want to foster competition and in emerging economies should be a universal of business advantage.

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