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In order to tap investor expectations of a rising yuan (RMB), insurers are preparing to launch yuan-denominated policies as a new product offering for insurers in the Hong Kong market. Insurance premiums make up almost 10% of Hong Kong’s GDP, compared with just 3% of China’s GDP. …
Read More Hong Kong: Launch of Yuan-Denominated Policies in Hong Kong

The China Insurance Regulatory Commission (the CIRC) has granted Lloyd’s China a licence to write direct insurance. This is in addition to Lloyd’s China’s existing reinsurance licence (granted in March 2007). The announcement was made by Lord Levene, chairman of Lloyd’s, on 19 May 2010 at the UK Pavilion at the World Expo in Shanghai. …
Read More China: Lloyd’s China Granted Licence to Write Direct Insurance

According to an estimate provided by Lloyd’s of London, over £6.2 billion worth of insurance coverage has been purchased by individuals and entities in connection with the 2010 FIFA World Cup, which begins today.  Over half of that amount is for coverage for stadiums and training facilities, which reflects the vast amount of money that has been spent constructing and upgrading stadiums ($5.5 billion, according to the New York Times). …
Read More World Cup Insurance Estimated at Over 6 Billion Pounds

China is considering reviving its plan to set up a super regulator in order to make the government’s oversight of the financial sector more efficient and expedient and improve the lack of integration and co-ordination between existing regulators. This is especially important as the financial sector becomes increasingly integrated (for example it is now possible for banks to invest in insurance companies and vice versa). 

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Read More China: Chinese Consider Revising Plan for a Super Regulator

In World Harbourview Hotel Co. Ltd & Others v ACE Insurance & Others [2010]  HKCFI 327, the High Court of the Hong Kong Special Administrative Region Court of First Instance considered a claim filed under insurance policies in respect of business interruption suffered as a result of the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003. 

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Read More HK: Insurers Win at Court of First Instance in Severe Acute Respiratory Syndrome Claim Dispute

PICC Property and Casualty Company (PICC), China’s largest non-life insurer, reported an increase in profits to 1.78 billion yuan (US$260.8 million) as a result of a surge in China’s stock market lifting the value of their investments and growth in insurance premiums received. PICC is exploring a number of ways to improve its solvency ratio, which currently sits at 111% having dropped 34% last year. …
Read More HK: Insurance Industry Update

On 12 April 2010, the IAIS published a guidance paper on the “treatment of non-regulated entities in group-wide supervision” (the Guidance), which is available here. 

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Read More International Association of Insurance Supervisors (IAIS) publishes guidance paper on insurance groups

The Governor of Guangdong Province, representing the Guangdong Provincial Government, and the Chief Executive of the Hong Kong Special Administrative Region (the SAR) signed a Framework Agreement on Hong Kong/Guangdong Co-operation (the Framework Agreement) at a signing ceremony in Beijing on 7 April 2010. …
Read More HK: Hong Kong and Guangdong sign Cooperation Agreement

The new Japanese Insurance Act (the Insurance Act), which was passed by the Japanese Diet in May 2008 came into force on 1 April 2010. The Insurance Act will regulate insurance contracts generally (although the Commercial Code will continue to regulate marine insurance). The Insurance Act represents the first significant revision of insurance law in Japan for about 100 years. …
Read More HK: New Japanese Insurance Law Concerning Insurance Contracts Comes Into Force