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Telephone +44 (0)1444 450 919 www.worldwiderisksolutions.com
Welcome to our Monthly Newsletter – October 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.

What Is Going On Out There?

What a month this has been! Like all readers, we have bombarded with news about financial fortresses suffering unforeseen losses.  Not only is this bad news for shareholders and top management, it is a serious worry for employees as their jobs come under the spotlight. Let’s hope that their anguish does not materialise. Every month there is an acquisition, a market entry, a new joint venture, an adjustment to the alliance between the provisions of the state for social security and healthcare and products developed by the insurance industry. We keep you aware of these through our Talks Around the Bazaar.

Additionally we have for our readers the SPOTLIGHT series, helping you to 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 a vital advantage to those who are active in the global economy. This helps avoid misunderstandings and unfulfilled expectations. In response to requests from our readers, these articles are now in a PDF format to enable you either to download them to print off or to save them and read them later.

We have received very positive feedback on these articles and if you have any comments or questions, please let us know. Also, if you would like to discuss your international strategies with us, please contact us. Details are below.

In June last year we discussed the impending changes in the Brazilian market with the IRB about to lose its monopoly. Ten months later, the first non-admitted reinsurer’s licence was issued – to Lloyd’s. Now about a dozen licences have been issued. What many people had not realised, is that there are restrictions which hamper the way non-admitted reinsurers can actually do business in Brazil. We asked Harmonía in São Paulo, who helped us with their article last year for an update and we are very pleased to provide this now. For more information, helpful websites are http://en.wikipedia.org/wiki/Brazil and http://www.lloyds.com/News_Centre/Features_from_Lloyds/Reinsurance_bright_future_in_Brazil_05082008.htm  

Brazil

In the April, the effective opening of the Brazilian market of reinsurance occurred. The dissolution of the monopoly of the Institute of Reinsurance of Brazil (IRB Brazil-Re) transformed the Brazilian sector of insurance. For its size and potential, in the few months of formal operation, this new market gained the attention of the world and witnessed the massive entrance of international players into the country.

To read the complete report on Brazil, Please Click Here (PDF Report).

In preparing this Spotlight article we have received invaluable assistance from the leading broker, Harmonía Corretora de Seguros e Resseguros (www.harmonia.br) for which we 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 again feature a Spotlight article. Due to the extraordinary developments around the world, some of the projects have taken a lower priority with our friends and colleagues and we will have a surprise for you next month.

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

  • The surprises and drama unfolding in the current financial crisis were unforeseen. Who could have guessed the amount of money national governments have to fork out to save the AIG’s, Fortis’s and others from going under? There are many sources of useful and insightful information; a couple are, www.ft.com and www.businessinsurance.com
  • Whilst much of the world was stunned by the results of the sub-prime crisis, the hurricanes have had a field day. For an overview of what has been happening, see the National Hurricane Center
  • In the meantime, Congress has extended the U.S. National Flood Insurance Program. For more background, go to the FloodSmart website
  • According to a leading seniors group in Australia, sustaining the official retirement age at 65 is more of a threat to the economy than climate change. That is why they are urging the Government to raise the retirement age to 75. The big question is: per when? Interestingly, it is only when the threshold approaches that you think about it more. For further insights, see http://en.wikipedia.org/wiki/Retirement. Having said that, there is a lot happening in Australia as we can see in the latest KPMG report
  • Therefore, it is good news for golfers in Australia. A new deal for the national body will boost development of the sport. For more, visit the iseekgolf.com website.
  • Reinsurers are claiming that an end has come to the soft market. This has yet to seep through to the primary markets where the question is not so much which insurer gets the portfolio of which client’s business but which insurer takes over the portfolio of another insurer’s clients!
  • China has set out new rules for an Insurance Protection Fund should insurance companies default. Read More  
  • Saudi Arabia has issued new rules for companies seeking a licence in the kingdom as well as a Market Code of Conduct: Read More
  • There have been calls to create an Asian Catastrophe Pool. It may take a while in coming and in the meantime a good study of the issues is the ADB Regional Technical Assistance Report
  • AIRMIC in the U.K. is to publish a Procurement Guide for risk managers. This is free on application at the airmic.com wesbite

  • Lloyd’s has reduced the Central Fund contribution from 1% to 0.50% - the lowest for a decade. For more about this market and results, see www.lloyds.com
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    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:

  • Belize
  • Brazil
  • Canada
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Malta
  • Netherlands
  • Poland
  • Turkmenistan
  • United Kingdom
  • U.S.A.
  • Vietnam
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    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

    ““It has helped us a lot that we can rely on Worldwide Risk Solutions for their breadth of expertise”

    “Worldwide Risk Solutions is responsive and helps us make a difference”

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    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.