Global Insurance Trends 22.03.2016

Douglas Shillito

This week, the Financial Conduct Authority(FCA) and the Treasury published their Financial Advice Market Review, which intends to enable wider access to financial advice following the changes brought in through the Retail Distribution Review(RDR) three years ago. The use of greater automation to provide better guidance could be key. Standard & Poor's also reviewed issues over the designation of G-SIFIs.

The end of the 2015 result announcements neared its end. Amongst those reporting were Legal & General (a good all-round performance), Hastings Group (another strong year), Helvetia (increased earnings and growth), LV= (increase in pensions business), Vienna Insurance Group (aiming to double pre-tax profit in 2016), and Crawford & Company (net loss after restructuring and other charges).

The chief executive of the International Underwriting Association (IUA) was beating the drum in Brazil on behalf of the London Market, the Association of British Insurers (ABI commented on the Budget proposals to raise the Insurance Premium Tax to pay for flood defences, and also the potential impact of a Lifetime ISA. The Chartered Insurance Institute (CII) reported that there had been a 50% rise in technical insurance apprentice starts since 2013, and the International Cooperative and Mutual Insurance Association (ICMIF) highlighted that mutual and cooperative global premiums had grown 30% between 2007 and 2014 to $1.3tr, compared to an overall insurance market increase of 13.6%. The Reinsurance Association of America (RAA) reported that their members' underwriting profit, net premiums, investment income, and incurred losses were all down last year.

Accountagility said research indicated that CFOs using spreadsheets to tackle the requirements of Solvency II could face major problems. Ageas announced that it had reached a settlement in its civil proceedings relating to the former Fortis Insurance Group, and Swiss Re announced proposals for its upcoming AGM as well as published its Annual Report 2015 and its Economic Value Management Report 2015.

Generali announced Philippe Donnet, head of its Italian business, as its new Group CEO, and Alberto Minali as General Manager. Joachim Wenning will succeed Nickolaus von Bomhard as CEO at Munich Re next year. There were Group CUO appointments at Fidelis and Tokio Marine Kiln. There were also new chairmen appointed at the London & International Insurance Brokers' Association (LIIBA) and at the Managing General Agents' Association (MGAA).

Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com.

 

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