Prudential has given $2 billion for purchase of actives in the USA
Written on 26 March 2008 by adminBritish insurances company Prudential has allocated 1 billion pounds sterling ($2 billion) for large purchase in the USA, which can occur within the nearest months.
These means will go on business expansion in the USA, where the mass output on pension of baby-boomers generation has begun. American market gives a quarter of proceeds from new business of the company. In connection with the fact that growth in the British market is slowed down, the British insurers are compelled to pay more attention to the foreign markets.
Prudential plans to disclose the details of the transaction within the several months. Means will be given by its North American division Jackson National Life Insurance Company.
In terms of credit crisis Prudential’s chances of successful transaction are increasing. Now not too many companies can make competition in this sphere.
So, American market gives good opportunities for growth as two thirds of world pension accumulations. They make $17 billion for 78 million the people.
Moody’s has declared credit rating downturn of the U.S. largest insurer
Written on 12 March 2008 by adminThe situation in the world financial markets remains extremely intense, as there are no distinctness concerning the state of the American economy, and for the present time it is quite difficult to define it.
US Department of Commerce has informed about sharp reduction in a level of new housing construction in December, 2007, and the rating agency Moody’s has declared, that it can lower credit rating of one of the largest US companies in sphere of bonds insurance Ambac Financial, that can cause decrease in a rating of the issued bonds insured by the company.
“Vympelcom” starts to insure cell phones
Written on 10 March 2008 by adminRussian operator of cellular communication “Vympelcom” (trade mark “Билайн”) starts to insure phones of the clients against damages and thefts. At present there are no successful examples of granting such services in Russia.
As the partner of “Vympelcom” in this project works insurance company ACE. At first, the service will be available only in Moscow and the region, and then and in other regions of Russia.
Phone can be insured against casual damage, theft, and also against damages by liquid. Money for the insurance will be monthly written off from the account of the subscriber. For example, the insurance for a phone for 4000 rubles will make from 39 up to 59 rubles.
The cellular retailer “Беталинк” has already rendered similar service, but has eliminated it, as it was difficult to prove, whether the phone is lost or damaged casually. MTC and “Megaphone”, “Vympelcom”’s competitors are not going to render such service.
Risks under the shelter
Written on 7 March 2008 by adminInsurers remembered the last by growth of the real market by 35-40 percent. Growth of number of the Russians who have taken advantage of insurance services, for two years has made not less than 9 percent. In the period from 2005 till 2007 the share of the Russians, who use these or that services of insurance, has increased from 37 to 46 percent. Such are the results of the survey, conducted by National agency of financial researches.
Using services of motor third-party liability insurance remained at a former level, for comparison: in 2005 - about 20 percent from the general number of Russians, in absolute numbers the amount of automobile owners who have used motor third-party liability insurance policies in 2007, is much more. The number of Russians who have taken advantage of car insurance from stealing and damage has increased almost twice for these two years - with 3,4 up to 6 percent.
The largest American insurer declared record losses
Written on 5 March 2008 by adminNet loss of American International Group (AIG) in the fourth quarter of 2007 have made 5,29 billion dollars, informs Reuters. For the similar period of 2006 the insurance company reported the profit at a rate of 3,44 billion dollars.
The declared losses are the biggest from the moment of primary distribution of shares 40 years ago. Last time the company took a bath in the fourth quarter of 2002 at a rate of 103,8 million dollars.
Volumes of losses in the fourth quarter of 2007 were affected with write-off of the cost of the insurance contracts connected to the mortgage - 11,1 billion dollars. Net profit of the AIG for all 2007 has decreased by 56% to 6,2 billion dollars.
American International Group is the largest American company, which takes the first place on life insurance in the USA and the second place in the world on property insurance. Capitalization of the company makes 172,3 billion dollars.
The American will get 9 million dollars for the cancelled medical policy
Written on 4 March 2008 by adminThe arbitration tribunal of California has obliged insurance company Health Net to pay 9 million dollars to its former client, whose insurance policy was cancelled at that moment, when she underwent chemotherapy after removal of malignant breast tumor.
Breast cancer was revealed in 2004. The woman was operated upon breast, then she was instituted a long course of chemotherapy. However soon doctors refused to continue treatment as the insurance company ceased to pay her accounts. The total sum of the debt has reached 129 thousand dollars.
As it was found out, Health Net abrogated the contract unilaterally in connection with invalid information about client’s state of health. According to representatives of the insurer, settling a contract she had incorrectly specified the weight, and also held back cases of seeking health care in connection with cardiovascular diseases.
The American has managed to continue treatment due to the state program supporting patients with oncological diseases.
During the hearing it was found out, that Health Net’s employees received premiums for abrogation of incorrectly settled contracts.
Russian tourists can remain without insurance payments
Written on 29 February 2008 by adminRussian tourists in the nearest future can face a serious problem. There is a risk, that in case of any problems during a trip, the insurance company can refuse to recover losses. And all because the Supreme Court has outlawed tickets for a group tours, which tourist agencies give the clients.
This story began last autumn, when the Ministry of Finance approved new form of “tickets for toursâ€. This variant should have contained the information not only about the firm, but also about tour operator. This information has appeared, but it replaced the description of services.
For this reason one Saint Petersburg’s resident has gone to law with the requirement to recognize the Ministry of Finance’s decree illegal. He motivated it with absence of trip’s description.
In result the Supreme Court has decided to cancel the form. However the previous form is not restored yet. And according to the existing rules, in case of the claim to tour agency, a tourist should give either the cash voucher, which proves the payment of services, or the ticket for a group tour. The trouble is that not all tourist agencies give checks, and the tour can be outlawed.
American reinsurance broker Collins enters the European insurance market
Written on 27 February 2008 by adminAmerican reinsurance broker John B. Collins Associates, Inc. (Collins) will start its work in Europe. Michel Fernandez will head the European unit of the company.
M.Fernandez works in the field of broker services in reinsurance segment in the European region for 15 years.
He began the career in 1993 in Parisian branch of Guy Carpenter and Co., the broker company of MMS group. In 10 years he has began to work in the New York office of the company where he made calculations for the insurance companies from several European countries.
Collins specializes on reinsurance of life and not-life. The company was founded in 1987. The headquarters is located in Minneapolis (USA). Collins works in the markets of the USA, Bermudas and in London.
In 2006 the premium of the company has made 1,8 billion dollars.
Life insurance policy (Part 2)
Written on 26 February 2008 by adminTo make life insurance more habitual for Russians, insurers should solve a number of tasks. First one is the agency network. Accumulative life insurance is an expensive product road, which is sold through agents.
In addition, potential clients are very poorly informed on such product, as life insurance. They do not have experience of long-term financial planning and the most important – they have not enough money. And imperfect Russian legislation does not allow insurers to introduce the new products, which are very popular in Europe - unit-linked.
Unit-linked policies differ from usual life insurance by client’s ability to choose strategy of means investment. In case of unit-linked products, the client determines direction of investment and may choose more aggressive strategy of investment, which is also more profitable. But client consciously take this investment risk.
This kind of insurance enjoys especial popularity both at insurants, and at the insurance companies.
Life insurance policy (Part 1)
Written on 22 February 2008 by adminNone from insurers has doubts, that life insurance market in Russia is very perspective. But for the present time accumulative life insurance, is unprofitable, as a rule, and unpopular for the same reason. Therefore insurers try to find novel ways on clients intake.
In the advanced countries life insurance accounts for more than 40 % of all insurance market. In Russia, according to Fitch, life insurance accounts for about 3 % of total premiums sum for 2006 and nine months of 2007. And the main part of the sold life insurance policies falls on corporate insurance. The share of “voluntary” retail insurance is even the less. Most experts estimate this part of the market approximately in $180-200 million, at a total volume of life insurance market for 9 months of 2007 in more than $700 million.
Nevertheless insurers agree that life insurance market is potentially very interesting segment with quite good prospects of development. “Today life insurance market is at the earliest stage of development, and its share in gross national product is very insignificant, approximately 0,05 %. However, we predict its growth by 30-40 % per year, and by 2012 it will reach € 2 billion”, - is sure the president of “ING Life insurance” Olga Ruf-Fidler.
