As the awareness of terrorism in the Middle East grew amongst businesses operating in the region, many foreign and domestic investors began to flee several countries in the area hoping to escape costly losses as the result of attacks. Pakistan was particularly impacted by the exodus of businesses. Over the years, however, the Exchange Commission of Pakistan (SECP) has been working to attract investors to the country. One of the ways the commission aims to accomplish this goal is to introduce a new insurance pool designed specifically with terrorism risk…
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Global insurance and banking regulators call for more oversight in the industry
As the world’s economy continues to sputter ever onward, global insurance and banking regulators are setting their sights on financial institutions that provide insurance products. These institutions contributed to the global recession in varying degrees, and regulators now want to ensure that a similar crisis does not form due to lack of oversight. Regulators have drafted a new set of rules that aim to assess whether banks selling insurance products are managing their liquidity and capital levels as they are meant to. The Basel Committee on Banking Supervision, the International…
Read MoreChina insurance market growing too fast for domestic insurers to handle
China’s insurance market is experience major growing pains, according to a report from Standard & Poor’s, a credit rating agency based in the U.S. The Chinese market is, by all accounts, enormous and the potential for success in second to none. The full breadth of this potential success, however, is open only to Chinese insurers. Native insurers are now facing demand for coverage that they are having trouble meeting. Many companies, including New China Life, one of the largest life insurers in the country, are plagued with capital shortfalls due…
Read MoreItalian insurance market looks healthy, attracts foreign investors and insurers
Despite the growing economic crisis in Italy, the nation’s auto insurance industry is showing promising signs of expansion. The industry is beginning to attract the attention of foreign insurers, consumers, and independent agents due largely to its strong presence on the Internet. Insurance sold through banks in Italy is also on the rise, imbuing the industry with tentative hope for future growth and solvency. According to the Institute for the Supervision of Insurance (ISVAP), one of Italy’s regulatory authorities, online sales of auto insurance rose by 7% in the first…
Read MoreLloyd’s of London files suit against prominent organizations in Saudi Arabia holding them responsible for 9/11 attacks
The attacks against the U.S. on September 11, 2001, have had a profound impact on nearly every aspect of life throughout the whole of the world. Terrorism is now a word that nearly everyone knows, a word that invokes varying degrees of discomfort for those that hear it. While many caught in the attacks have finally begun to put the broken pieces of their lives back together, Lloyd’s of London, one of the largest insurance companies in the world, has filed a federal lawsuit against those it believes are responsible…
Read MoreAntitrust regulator in the United Kingdom to begin motor insurance rate inquiry
An antitrust regulator in the U.K. is beginning a probe into the increasing private auto insurance premiums in the country, as a precursor to actions that may be taken to alter and better the way the marketplace functions. The Office of Fair Trading (OFT) will examine evidence regarding the increases in price that occurred annually over a five year period and will work with the Financial Services Authority and the Ministry of Justice throughout this investigation. The OFT says that it will release its findings in December. According to a…
Read MoreU.K. insurers market outside of Lloyd’s performs better than expected
Property and casualty insurance companies that are operating outside the Lloyd’s of London market in the United Kingdom have brought in the equivalent of approximately 75 percent of the income of their more high-profile competitors, which is a notably larger amount than had been previously predicted. According to the first comprehensive survey of the sales of members of the International Underwriting Association (IUA), the insurers, known as the London company market, generated $26.6 billion (16.4 billion pounds) in gross premium income last year. On the other hand, last year, Lloyd’s…
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