Having trouble viewing this newsletter? Read it online
Telephone +44 (0)1444 450 919 www.worldwiderisksolutions.com
Welcome to our Monthly Newsletter – August 2008

An Established and Successful Force in International Insurance

Worldwide Risk Solutions is a U.K. based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information about us, please go to www.worldwiderisksolutions.com.

Since Our Last Newsletter

In the middle of July, the dialogue between the European Commission and interested parties on the potential removal of the insurance industry’s block exemption from certain E.U. competition rules came to an end.  There has been speculation that if the suggested removal of the block exemption becomes reality, there will be serious disruption in certain markets: competition will in fact become stifled and pooling arrangements created to serve clients effectively and efficiently may be forced to disband. The Commission is unlikely to support the continuation of the exemption just because it makes life easier for the insurance market (which it does) but will base its decision on consumer interests: what is best for the insureds.  The insurance industry prides itself as being innovative and able to face up to challenges.  Let’s hope that those people who have talked to the Commission have stated clearly how they see the industry progressing, with E.U. help, to serve clients better with new products, user friendly systems and procedures and access to capacity and expertise all at a fair price. 

We continue our SPOTLIGHT series to help you understand the way different markets around the world operate so that those of you who do business there can feel more “at home abroad.” Different does not need to mean difficult but knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. This helps avoid misunderstandings and unfulfilled expectations. We have received very positive feedback on articles such as Reputation Risk, Guernsey, Cambodia and more; if you would like copies, please let us know. If you would like to discuss your international strategies with us, please contact us.

Dominican Republic

The Dominican Republic is a nation located in the Caribbean island of Hispaniola. Part of the Greater Antilles archipelago, Hispaniola lies to the west of Puerto Rico and east of Cuba and Jamaica. Its western third is the nation of Haiti, making Hispaniola one of two Caribbean islands which are occupied by two countries, Saint Martin being the other.

The Dominican Republic is the site of the first permanent European settlement in the Americas, its capital Santo Domingo, was also the first colonial capital in the Americas. It is the site of the first cathedral, university, European-built road, European-built fortress, and more.

For most of its independent history, the nation experienced political turmoil and unrest, suffering through many non-representative and tyrannical governments. Since the death of military dictator Rafael Leonidas Trujillo Molina in 1961, the Dominican Republic has moved towards a liberal economic model, which has made it the largest economy in the region and a representative democracy.

To read the complete report on the Dominican Republic, please click here.

In preparing this Spotlight article we have received invaluable assistance from Franco Fernandez & Asociados SA, Santo Domingo (www.francofernandez.com) for which we are grateful.

If you would like Worldwide Risk Solutions to conduct an economic, business and insurance survey of any international markets please contact us – Details below.

Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. And should you be passing through London, please let us know.

In our next e-newsletter we will feature a Spotlight article on Israel.  Always in the news, this country has been developing a healthy insurance market. What has happened there will make interesting reading. In our next edition of WoRdS we will look at a bit of the history and what is going on there today.

For more information about any of the items discussed in the current or previous issues of WoRdS, please see our Contact Details

George Worsley, Director
Worldwide Risk Solutions
Telephone +44 (0)1444 450 919
Mobile: +44 (0)7968 191 511
E-mail info@worldwiderisksolutions.com

Talk Around the Bazaar

  • Companies insuring risks and exposures in Jordan are to be informed that they will need a licence to do so. This step will enable the Insurance Commission to develop regulation as a first step in stimulating the growth of the local market. A next move will most likely relate to the way in which takaful companies are assisted in setting up operations in the country. There has been a general feeling around the world that efforts to promote and coordinate the development of financial products which comply with Islamic law have been inadequate. A lot has happened during the past couple of years and a general body to oversee such developments would be a good idea 
  • In Germany the prospect of a new insurance contract law has people a bit worried. Not because it will lead to more transparency but because of the changes to the administration within most organisations 
  • The Indian Life and non-Life insurance markets appear to be competing with each other in respect of the number of players in their sector. There are 20 non-Life and 21 Life insurance companies – as of today. Next month it will have changed. One of the latest new Life entrants is the American Prudential. It will be interesting to see how the Life market develops with bancassurance singled out to produce 50% of private life premiums by 2010 (up from about 17% two years ago)
  • Cross-border healthcare is a growing phenomenon in the European Union and there are insufficient guarantees on patients’ rights. In answer to this the European Commission is mulling over proposals to introduce E.U.-wide compulsory medical malpractice liability insurance. Insurers are urging caution; could it be that insurance is not the answer to consumers’ needs?
  • Bangladesh is moving towards insurance market regulation which will comply with international standards. An independent regulator should increase confidence on behalf of foreign investors in the insurances which cover their risks and exposures
  • In the Philippines the government’s plans to monopolise motor third party insurance and integrate it into the vehicle registration process have suffered a setback but still could rebound depending upon market experience
  • Another large European insurer is buying into Turkey. Following Talanx, the Dutch Aegon has acquired a local carrier. By completing the deal with Ankara Emeklilik, businessmen are showing again that they can forge integrated links with Turkey faster than politicians can. That does not mean, by the way, that we necessarily advocate businessmen going into politics
  • Japanese insurers are on the move again. Tokyo Marine has upgraded its branch in Shanghai to a full subsidiary and purchased Philadelphia Consolidated in the States. Dai-Ichi Mutual Life is buying into Ocean Life in Thailand as a stepping stone for expansion in the region
  • In India, motor is only marginally ahead of healthcare insurance as the largest branch of business in the country. The recent creation of a pool for motor third party liability insurance may affect competition slightly but healthcare is the faster growing class of business
  • Laiki Life and non-Life insurance companies in Cyprus are to be controlled by the large French carrier CNP as a result of a deal with Marfin Popular Bank of Greece. Expect to see CNP involved in other deals in the region
  • New Zealand may see part of motor third party liability insurance departing from the Accident Compensation Corporation scheme. There is talk of making motor related property damage compulsory because there are so many uninsured motorists in the country
  • * * * * * * * * * *

    We are currently discussing projects in the following markets and are regularly being asked to attend the annual conferences and meetings of the major networks:

  • Brazil
  • Canada
  • Columbia
  • Dominican Republic
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Netherlands
  • Poland
  • Romania
  • Sri Lanka
  • Turkmenistan
  • United Kingdom
  • U.S.A.
  • * * * * * * * * * *

    We continue to work with a growing number of networks to improve and expand their international capabilities.  If you have not already spoken to us about expanding your international markets, now might be the right time for us to conduct a feasibility study. For more information, please see the contact details below.

    What Clients Say

    “Their knowledge of foreign markets and the main players there has been very helpful to us”

    “Worldwide Risk Solutions opens doors for our company”

     

    * * * * * * * * * *

    Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. And should you be passing through London, please let us know.

    CONTACT US

    BY POST
    Worldwide Risk Solutions LLP
    20 Blunts Wood Road
    Haywards Heath
    West Sussex
    RH16 1NB, England

    BY TELEPHONE
    Telephone: +44 (0)1444 450 919
    Mobile: +44 (0)7968 191 511

    BY E-MAIL
    info@worldwiderisksolutions.com

    BY SKYPE
    Skype Name: georgeworsley

    Disclaimer
    Information appearing in WoRdS is checked for technical accuracy but is not intended to provide a basis of knowledge upon which advice can be given. Worldwide Risk Solutions accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this newsletter.