Page 14 - Insurance Times July 2016
P. 14
International
Hong Kong's life insur- Positive outlook for Panama's insurance industry
ance continues to show A new report from Timetric's Insurance accommodate not only larger ships but
Intelligence Center (IIC) forecasts a also a larger volume of ships. The ben-
significant growth bright outlook for the Panamanian in- efits of this increased marine activity
surance industry during the next are expected to generate growth for
Having registered a CAGR of 14.1%, couple of years. In 2014 the
life insur- industry's gross written pre- marine and property insur-
ance in mium reached US$1.5 billion - ance over the forecast period.
Hong Kong a growth which is expected to It is estimated that marine
is forecast continue up until 2019. Conse- cargo values will increase by
to maintain quently, the insurance indus- $1.3 billion per day.
try will expand at a CAGR of 9.3%, with
strong growth and remains the lead- the gross written premium reaching "The increase in the value of
ing category in the overall insurance US$2.3 billion. cargo transported in and out of
industry, according to a report by Panama should benefit insurers as
Timetric's Insurance Intelligence The Panama Canal expansion project, more economic activity will have to be
Center (IIC). which is to be completed within the insured, but they may also be exposed
next few months, will likely double the to a wider and more loss intensive
The Hong Kong life segment ac- capacity of the canal and enable it to range of risks," comments Jay Patel,
counted for 87.0% of the overall in- Insurance Analyst at Timetric.
surance gross written premium and
valued US$38.7 billion in 2014. The China curbs Overseas Insurance Payments
life insurance gross written premium
will continue to show a satisfactory China's dominant Credit Card Insurer China Union Pay said it
performance, to reach US$68.5 bil- would enforce an existing USD 5000 per transaction cap on
lion in 2019, at a CAGR of 12.1%. the amount customers can spend with its credit cards on over-
seas insurance products that are similar to savings products.
According to Timetric's Insurance
Analyst Jerome Walcott, "Consumer US based AIA Group Ltd. And the UK based Prudential Plc. are affected by this
preferences for life insurance in Hong Rule mostly. Beijing has become increasingly concerned about money flowing
Kong have changed in recent years. overseas amid a slide in the Yuan's value against the dollar in recent months.
Consumers became more reluctant
to invest in unit-linked plans as a re- CIRC- China Insurance Regulatory Commission- is planning to ban the sale of new
sult of the poor performance of the high returns insurance products that have a term of less than 3 years. In addi-
global economy, and redirected in- tion all sales of such short term products already being sold are to be halted
vestments to traditional life products after October 1 2016.
such as whole life, general annuity,
endowment and term life insur- Met Life to sell its network of Agents
ance."
Met Life agreed to sell its network of 4000 life insurance agents to Massachu-
setts Mutual Life Insurance Company for about 300 million USD, as part of its
larger effort to slim down and respond to a shifting Regulatory environment.
Mass Mutual, based in Springfield, currently has about 5600 agents and one of
a small number of prominent life insurers owned by their policyholders.
14 The Insurance Times, July 2016
