Showing posts with label insurance market share. Show all posts
Showing posts with label insurance market share. Show all posts

Indonesia insurance property market forecast 2013

best insurance stock - Indonesia insurance property market forecast 2013 : Property insurance market share continues to shrink. Data General Insurance Association of Indonesia (AAUI) in the first semester of this year noted, the property insurance market share slipped to 27.4% from the same term last year's 29.9%.

Property market share surpassed by motor insurance rose to 30.1% from the previous 29%. Until the beginning of the semester, the total general insurance premiums Rp 18.89 trillion, grow 12.8% compared to the same period last year of Rp 16.74 trillion.

Property insurance contributions Rp 5.1 trillion or an increase of 3.5% from the same period last year of Rp 5 trillion. While gross property insurance claims actually grew 24.6% to Rp 2 trillion from Rp 1.6 trillion in the previous period. Premium of Rp 5.6 trillion, up 17.2% from Rp 4.8 trillion.

Increasingly shrinking property insurance estimate because the war was still going on tariffs. As a result, players choose cautious about accepting risk property insurance.

In addition, the granting of commissions to intermediaries such as broker or brokerage has been no standardization. First, the commission to the broker the range of 15% -20%, now has a range of 25% -30%. In addition, property premium rates were calculated using the model per mile.

Unlike auto insurance, calculations based on the percentage of the vehicle price. "Hence, the growth of the motor vehicle, the premiums vary with the property," said Julian.

With this condition, it is not likely the property insurance market share will continue to shrink in the coming period. Moreover, the desire to create a preference industry premium rates for property insurance has not yet materialized. That is, the property insurance premium price competition will continue to happen.

In fact, the desire to make the tariff preferences that have been around a long time. However, until now there is statistical data collected premium of industry players to make such preferences. Unlike in vehicle insurance, is there a reference rate.

2013 Asian commercial insurance rates

best insurance stock - 2013 Asian commercial insurance rates :Continued economic growth and low natural catastrophe losses, combined with strong competition between insurers in most classes of business, will continue to provide favourable market conditions for buyers of commercial insurance in Asia during 2013, according to a report published today by Marsh.

Organisations across Asia, especially those with little or no exposure to natural catastrophe risk or with good loss histories, should be able to secure reductions on their insurance rates, continuing a trend begun in the second half of 2012, Marsh noted in its Asia Insurance Market Report 2013.

However, Asian companies offering employee benefit programs can expect more challenging conditions this year as medical cost inflation continues to escalate significantly, putting upward pressure on rates.

For example, Marsh expects insurers to seek average rate increases of up to 35% in Thailand where medical inflation is expected to rise between 20% and 25% this year. An upward trend, with local variations, is expected to be seen in most Asian countries.

Marsh also noted that while rates for directors and officers (D&O) insurance for US-listed Chinese companies remained high the market had largely stabilised, partly due to a slow-down in IPO activity.

Across the rest of Asia, D&O rates generally remained flat or decreased, as increased litigation against directors was offset by an increase in insurance capacity.

“The insurance market in Asia remains generally favourable to buyers as the flow of capital, capacity and competition into the region keeps rates competitive,” says Martin South, CEO of Marsh in Asia-Pacific.

“However, there will always be the possibility of spikes in premiums following large market losses. As the industry matures, clients should focus on providing their insurers with robust evidence of their risk management and mitigation strategies, not only to secure competitive pricing, but also to ensure they have insurance protection aligned to their particular risk needs.”

The report also finds that employees’ compensation (workers’ compensation) in Hong Kong continues to be a challenging market. Rates continue to rise significantly as loss experiences deteriorate and major insurers enter and exit the market, creating significant turbulence.

Banks continue to use structured trade credit insurance as a way to both deleverage their balance sheets yet still remain active in the trade finance market in Asia.

Professional liability insurance remains a buyers’ market, with highly competitive rates across Asia as new insurer entrants bring additional capacity and competition to the market, says the report.(source )

Nigeria insurance market trends by A.M. Best Co

Nigeria insurance market trends by  A.M. Best Co : Economic development and the demand for energy infrastructure projects has been fuelled by Nigeria’s oil and gas industry, resulting in the country’s insurance market becoming the largest in West Africa, according to a new report from A.M. Best Co.

“Africa’s Diverse Insurance Markets Offer Growth Opportunities, Untapped Demand”

In the report entitled, “Africa’s Diverse Insurance Markets Offer Growth Opportunities, Untapped Demand”, A.M. Best notes total insurance premium in Nigeria reached USD 1.6 billion in 2011, although insurance penetration is modest at 0.6%. The report states the Pension Reform Act, which makes pension insurance compulsory for companies employing more than five people, is likely to drive further growth in life premiums. A.M. Best considers the development of the life portfolio in Nigeria as positive for insurers’ diversification, although management teams may need to demonstrate their skills in these new areas.

Carlos Wong-Fupuy, Senior Director, Analytics, said: “Nigeria’s non-life sector accounted for 74% of total premium in 2011, with drivers including the enforcement of compulsory lines of business such as motor third-party liability, professional indemnity, public and general liability. Motor risks make up more than a quarter of non-life premium in Nigeria. This reflects the country’s oil and gas risks, which result in very volatile growth in gross premiums written and low retention ratios.”

The report notes the insurance market has experienced consolidation driven primarily by higher capital requirements. The financial crisis also contributed to merger and acquisition activity, as the Central Bank of Nigeria passed a directive ordering all deposit money banks to divest their non-banking interests or form a holding company structure. However, the report states Nigeria’s insurance market remains crowded.

Source: Business Wire