Bancassurance is growing in many Asian markets, buoyed by deregulation of banking sector on one hand and insurance companies intending to optimize distribution via banks on the other. On the local level, bancassurance business in Asia-Pacific countries has evolved in different ways.

Presented by The Geneva Association.

According to Swiss Re’s latest “World insurance in 2009” sigma study, world insurance premium volume fell 1.1% on an inflation-adjusted basis. Life premiums fell 2% while non-life stagnated. Premium growth in the emerging markets slowed but remained positive. The industry’s profitability and capital recovered significantly, but have not yet reached pre-crisis levels.

In most countries, insurance premiums grew faster than GDP in 2009, which shows the robustness of the industry. As credit and stock markets recovered, the industry’s profitability and capital improved. For 2010, overall premium growth is expected to turn positive. Profitability and capital will in all likelihood continue to improve.

We are currently looking at the life insurance market in Europe—more specifically saving and retirement solutions involving wealth management by insurance companies. In the frame of our initial work, we have tried to identify the differences between the main European markets comparing each of them in terms of density and penetration.

The first quarter of 2010 was characterised by slowly returning confidence to the banking sector; sustained strong confidence in asset management; and life insurer confidence again boosted by continued rising investment income.

Ernst & Young has identified the following six issues and challenges for insurers in 2010:
• Exploit near term Far East growth opportunities
• Develop products to meet shifting consumer demands and needs
• Confront issues surrounding distribution channel management
• Build more robust risk management and consider regional factors in managing risk
• Identify and develop immediate and long-term capital sources
• Plan for new accounting and regulatory requirements

Raymond Yeung looks at the new health reform in China and its implication on the development of Chinese health insurance industry.

Although the Korean variable annuities market has grown rapidly over the last five years and is fairly sophisticated in terms of product development, it is still lacking from a risk management perspective. Dynamic hedging is one of the best risk management strategies that Korean VA writers can adopt.

Health care reform has become a global topic due to 2 major factors. (Mercer)

Cost management, which took a back seat in Canada during the heady days of the last decade, is back. Although benefits still represent a small percentage of payroll, given the country’s accompanying medicare system, Canada was not immune to the effects of the global economic recession. Plan cost management is now a priority. Short-term economic survival is the imperative – long-term financial stability and affordability is the goal.

Emerging markets such as China and India continue to see growth in the financial services sector, providing opportunities for insurance companies based in more mature markets. What are the key opportunities and challenges that insurers face in doing business in emerging markets?

Compared to Americans, German citizens enjoy broader health care benefits at lower cost. Could such a system work in the US?

This 2009 Milliman survey examines European life insurance companies’ modeling of dynamic policyholder behaviour, which is the influence that external factors can have over policyholders’ propensity to exercise the options available in a life insurance policy.

Swiss Re’s economists predict that insurance and reinsurance will continue their recoveries in 2010, based on the assumption of a “U-shaped” recovery. Balance sheets will further strengthen and profits will increase. Growth will be positive but quite sluggish both in life and non-life insurance. This outlook could be muted by looming regulatory challenges, along with the trend for higher claims for catastrophic events, increasingly driven by climate change.

The Insurance & Finance Programme of The Geneva Association examines the interface of financial research with insurance and risk management. The programme makes original contributions to the progress of insurance through different initiatives in the field of insurance finance, such as detecting new and promising developments or discussing the relevance of financial concepts to the industry, and promotes the study of the function and nature of finance in insurance.

In this special contribution, Patrick M. Liedtke, Secretary General and Managing Director of The Geneva Association, looks at the common misperceptions about insurance’s involvement in the credit crisis and highlights the need for insurance involvement in the restructuring of the world’s financial architecture.

The remarkable economic growth that the Muslim world has experienced in recent years, together with a substantial increase in the availability of Shari’a compliant financing, has created a burgeoning demand for insurance products that are compatible with Islamic principles (commonly referred to as “takaful”). The market for takaful has grown at a precipitous rate and is expected to continue trending upwards. One estimate of the global takaful market anticipates an $11 billion industry by 2015.

Patrick M. Liedtke examines the proposals for reform in the post-crisis environment in four specific areas: financial stability and insurance, supervision and regulation, risk management and accounting and value measurement.

The term 'medical tourism' seems to be cropping up everywhere these days. From trade and business journals to the popular press, traveling to another country specifically to obtain medical care is a significant new trend. In this challenging economy, where the cost of healthcare continues to spiral up and hundreds of thousands have lost their health insurance along with their jobs, it's not surprising to see keen interest in less expensive resources, especially because the savings are often substantial.

The International Experience Survey (IES) is a pilot study being sponsored by the International Section to provide actuaries with practical information on experience in emerging and other markets outside of the United States and Canada. A working group has been established to define the project, variables and countries to be studied, review the research results and methodology and report its findings to the membership. The IES report is continuously updated as new information becomes available.

World insurance premium volume rose slightly to USD 4270 billion in 2008. However, adjusted for inflation, premiums declined by 2%. Global life premiums fell by 3.5% in 2008, mainly driven by a sharp fall in the sale of unit-linked and single premium life insurance products in the industrialised countries. Non-life premiums decreased by 0.8%.

To position for growth and high performance, financial institutions must anticipate regulatory reforms and devise their own strategies for success in the emerging environment, says this Accenture white paper.

The Geneva Association's April 2009 Information Newsletter spotlights long-term care and aging issues from a global perspective. The guest editorial by Christopher Ball and Ross Campbell discusses instruments that produce the right information for underwriters and claim managers to better insure long-term care risks. Housing, Medicare and long-term care insurance are also examined.

You can check out the latest on the global spread of influenza here.

Aon Announces Top 10 Global Risks

Hannover Life Re believes that we should all be looking to offer cover to as many individuals as we can and that as far as possible insurance should strive to be inclusive. The company also feels it is right to challenge ourselves to continue to change cultural attitudes and encourage inclusive behaviour.

From the March 2009 issue of Gen Re's Risk Insights.

Financial services and insurance companies face enormous challenges in 2009 as they manage through the economic downturn and respond to market shifts and consumer expectations.

The expansion of western European and US insurance companies into Asia will continue but at a slower pace. Read more.

According to the latest Swiss Re sigma study, world insurance premium income grew 3.3% in real terms in 2007, reaching USD 4 061bn. This growth was primarily driven by the life business in industrialised and emerging markets and to a lesser extent by the non-life business in the emerging markets.

UPDATE: The statistical appendix updates premium volumes from the world insurance sigma published earlier this year.

Driving through India's financial capital Mumbai, some of the brightest billboards that catch your eye promote insurance companies. Most of them represent big brands like New York Life, MetLife, Aviva and AIG. For the last five years, they have been working hard to make their presence felt in a under-insured market.

Takaful (Islamic insurance) is one of the fastest growing types of insurance worldwide and has potentially significant appeal beyond just Muslim populations. Writing in PricewaterhouseCoopers' Insurance Digest, the authors describe takaful’s attributes and attractions, and offer suggestions on how insurers can market it.

June 2008 – Around 70 representatives of primary insurance companies from all over Europe, and some from further afield, came together on 23 – 24 June 2008 at the Swiss Re Centre for Global Dialogue for a packed agenda of presentations, discussions and networking. Leading expert key note speakers addressed delegates, together with senior management from Swiss Re. All were focused on a single theme – growth opportunities, together with their accompanying risks, for life and health insurance markets in Europe.

For years, Japan has earned respect as a giant in global insurance markets. It's the second largest market in the world, after the U.S. According to Swiss Re, total premium income in 2006 reached $363 billion, representing approximately one-sixth of total world life insurance premium income. Japanese life insurers are among the largest in the world, including the largest of all, Japan Post Insurance.