Browse the complete Report on: South Africa Insurance Report Q3 2010
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‘Resilient’ is a word that has appeared frequently in corporate reports published by South African insurers, whether they operate mainly in the non-life or life segments. The economic slowdown has contributed to downwards pricing pressure in many lines within the non-life segment, while in the life segment a lack of financial security has inhibited customers from committing to long-term savings products. Nevertheless, published results indicate that 2009 was far from disastrous for South Africa’s insurers.
Although none mention it, it is possible that the structure of the market has helped participants to maintain prices and margins. Both the life and non-life segments continue to be dominated by companies from South Africa’s large domestic financial services groups. In the life segment the largest players are Old Mutual (among much else, the owner of Nedbank) and Sanlam. In the non-life segment Mutual & Federal, Santam and the local operations of Zurich account for nearly 40% of total premiums. Absa has non-life and life subsidiaries. FirstRand Group is represented by Momentum Group (life insurance) and OUTsurance (non-life). Standard Bank owns Liberty Group, a major life player. Nevertheless, there are several substantial independent companies, including Discovery, which focuses on health insurance, Metropolitan and Hollard, a private company expanding into Australia and elsewhere. A key development in the life segment has been the announcement – at the end of March 2010 – of the proposed merger of Metropolitan with Momentum. Metropolitan will make an all-share purchase of Momentum. FirstRand will then distribute its shares in Metropolitan/Momentum to its own shareholders, who will dominate the share register of the combined company. The deal will create a new and large listed life insurer out of two broadly complementary businesses, with an embedded value of around ZAR30bn. Metropolitan has traditionally focused on the low-to-middle income segment of the retail market, while Momentum has concentrated its activities in the upper-income segment. This transaction, which should ‘unlock’ the value of the investment in Momentum held by FirstRand’s shareholders and give them a controlling interest in a stronger business, is scheduled to be completed by the end of 2010.
The responses to a challenging year vary. However, in general, the impact of the downturn on profits was softened by at least one of: lower claims; lower administrative costs; corporate restructurings to emphasise more profitable lines and businesses; restructurings to reduce volatility of earnings; growth in healthcare products (thanks in part to the Government Employees Medical Scheme, or GEMS); foreign expansion (usually into embryonic markets elsewhere in Sub-Saharan Africa, but also in Australia’s nonlife segment) and, perhaps most importantly, higher investment earnings.
Of the insurers that emphasise niche businesses, it is possible that the one affected least by the downturn was Guardrisk, an element of Alexander Forbes (a broker of short-term insurance and provider of various risk management solutions). Guardrisk is one of the world’s leading providers of captive cell solutions to its clients. Guardrisk grew by virtually all measures in the year to the end of March 2009, as its customers sought the advantages of underwriting their own risks through captives.
A theme that runs through virtually all corporate reports is that the South African insurers’ levels of capital are well in excess of statutory requirements. Whether by retaining earnings within their businesses or by tapping into funds from shareholders or global capital markets in the good times prior to 2007, South African insurers ensured that their balance sheets were in good shape before the slowdown. At the time of writing, in June2010, we were able to ensure this report included actual data for 2008. We have generally been able to use data published in 2009 to adjust our figures for the year as a whole. We expect total premiums for 2009 of ZAR239,423mn. This includes non-life premiums of ZAR58,446mn and life premiums of ZAR180,977mn. In 2014 the corresponding figures are forecast to be ZAR322,072mn, ZAR110,361mn and ZAR211,711mn respectively. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to rise from 2.44% in 2009 to 3.45% in 2014, and for life density to rise from US$440 to US$532 per capita. BMI’s insurance industry Business Environment Rating for South Africa is 66.5 out of 100.
Issues To Watch
Overseas Expansion
Although a number of niches are unquestionably growing rapidly, the South African insurance sector as a whole is fairly mature, particularly in relation to GDP per capita. The structure of the industry is such that players cannot look to expand by way of mega-mergers. An obvious solution for the South African insurers is to draw on their strong balance sheets in order to expand outside the country.
Claims Costs
The South African Insurance Association (SAIA), the trade association for the non-life insurers, has emphasised the need to reduce the number of deaths on the road. Further initiatives by the industry to lower the incidence of accidents could be beneficial.
Lapses And Surrenders
Figures from the Association for Savings and Investment South Africa (ASISA), the trade association for life insurers and investment managers, show that lapses of life insurance policies fell from ZAR38bn in 2008 to ZAR32bn in 2009, a little over the level of 2007. This is another sign of the overall resilience of the industry in 2009, although lapses and surrenders in 2008 and 2007 may have been inflated by one-off value enhancements. Continuing slippage in the level of lapses and surrenders of life policies would be a positive sign.


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Browse the complete Report on: Saudi Arabia Insurance Report Q3 2010
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But for the underdevelopment of the life segment, Saudi Arabia would be the most attractive prospect for international insurance companies that are looking to operate in the Gulf Cooperation Council (GCC) countries. Virtually all other trends are favourable and the market has been opened up to foreign competition. New laws are promoting the development of health insurance. Saudi Arabia’s economy has withstood the downturn in energy prices through 2009 well.
Saudi Arabia’s insurance sector differs from others in the Middle East in that it includes at least one indigenous insurer – Tawuniya – that would rank as a large insurance company in most countries. Figures released by Tawuniya to Tadawul, the local stock exchange on which it is listed, indicate that its premiums nearly doubled over the course of 2009. By contrast, the next two largest players – Medgulf (a regional insurance company substantially owned by Saudi Arabian interests) and Bupa Arabia (the partly-owned subsidiary of UK health insurance giant Bupa) – lost ground.
In this report, we provide a breakdown of the market shares of the various market participants. We also provide a breakdown of the insurance sector by line, from the point of view of the regulator or trade association. The Saudi Arabian market is dominated by health products, which is double the value of the next most popular insurance, motor. They account for around 40% and 20% of the insurance products marketplace, respectively.
We have been able to ensure that the report includes actual data for 2008. We have generally been able to use data that has been published over the course of 2009 to adjust our forecasts for the year as a whole. We forecast total premiums in 2009 of SAR17,480mn. This is made up of non-life premiums of SAR16,784mn and life premiums of SAR696mn. In 2014 the corresponding figures are forecast at SAR44,618, SAR43,295mn and SAR1,323mn. In terms of the key drivers that underpin our forecasts, we forecast that non-life penetration will rise from 1.06% in 2009 to 1.80% in 2014, and life density from US$8 to US$13. BMI’s Insurance Business Environment Rating for Saudi Arabia is 53.2 out of 100.
Issues To Watch
Islamic Finance
The problems of Dubai World and its affiliates in the UAE in late 2009 have overshadowed the longterm strengths of Islamic finance. The absolute size of the capital pools in Saudi Arabia mean that the country has very strong potential as a market for the issuance and distribution of sukuks. Some estimates suggest that contributions to takaful operators account for about one-fifth of the Saudi Arabian insurance market.
Regional Consolidation
There is, and has been for some time, limited cross border investment by insurance companies based in the Middle East. Medgulf and ARIG are examples of (re)insurers based within the region that operate very effectively across national borders within the GCC states (and slightly further afield). In Saudi Arabia (and all other Arab countries in the region), the vast majority of insurance companies are small by anything other than local standards and lack economies of scale. There is scope for consolidation. Health Insurance
This line has emerged as a major – and growing – line in the non-life segment and should remain so.
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Browse the complete Report on: Kuwait Insurance Report Q3 2010
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Kuwait’s insurance sector is one in which much needs to change if the country is to shake its status as something of a backwater. As BMI’s discussion on the economic and political outlook makes clear, progress towards economic reform and liberalisation continues at a slow pace, at a time when inwards investment has been constrained by a challenging political environment. This is evidently not a market in which foreign insurers have felt the need for a lowering of barriers to entry.
Nor is it clear that there would be much opportunity for them if they did. The larger listed Kuwaiti insurance companies have published their results for the nine months to the end of 2009. We continue to look for overall growth in premiums last year of around 5%. Virtually all of the absolute growth in premiums was accounted for by market leader Gulf Insurance. Al Ahleia Insurance reported a significant decline in both gross and net premiums and total assets. As a result of our methodology – which assumes a steady increase in non-life penetration (i.e. premiums as a percentage of GDP), we are currently looking for accelerating in growth from 2010. However, we recognise that we may yet have to lower our forecasts. Other than those mentioned, the main operators in Kuwait are, similarly, locally owned and listed organisations that are small by anything other than local standards. Examples include Kuwait Insurance, Kuwait Re, Warba Insurance, Wethaq Takaful and First Takaful.
As is the case in several other Middle Eastern countries, the level of development of the life segment is embryonic. This may be because the government makes extensive social security benefits available to its citizens and it is not clear what will be a catalyst for this to change.
In this report, we also continue to provide a breakdown of the insurance sector by line – from the point of view of the regulator or trade association. In Kuwait, comprehensive motor insurance (presumably compulsory motor third party liability) was the largest line in the non-life segment, accounting for just under half of gross written premiums. Other major lines included life and health, marine aviation and transport, and property and fire insurance.
At the time of writing in mid 2010, we have been able to ensure that the report includes actual data for 2008. We have generally been able to use data that was published during 2009 to adjust our forecasts for the year as a whole. We have also extended our forecasts to 2014. We expect total premiums of KWD185mn in 2009, which comprises non-life premiums of KWD143mn and life premiums of KWD42mn. In 2014, the corresponding figures should be KWD382mn KWD318mn and KWD64mn respectively. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to rise from 0.47% in 2009 to 0.65% in 2014, and for life density per capita to rise from US$46 to US$67. BMI’s Insurance Business Environment Rating for Kuwait is 44.8
Issues To Watch
Islamic Finance
In spite of the general underdevelopment of its insurance sector, Kuwait stands out for the significance – in a local context – of its takaful operators. In the event that official resources are mobilised to promote Islamic finance, this sub-segment could grow rapidly.
Expansion Abroad
The growth prospects of the Kuwaiti insurers are constrained by the small actual (and potential) absolute size of the market. In many cases, it is difficult for them to increase their market shares within Kuwait.
There is no sign of a catalyst for development of the life segment. The obvious solution is to underwrite risks outside Kuwait – and/or to expand by way of acquisition.
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Browse the complete Report on: Iran Insurance Report Q3 2010
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Iran is home to an insurance sector that writes over US$4,000mn in premiums annually – equal to around 1.5% of GDP – and several of the largest non-life companies in the Middle East, indicating that there is widespread understanding of the general concept of insurance among its citizens and companies. However, the challenges that must be overcome if Iran’s insurance sector is to reach its full potential are both large and numerous. They would also be large and numerous even if Iran were not the object of international sanctions. In one of the few developments reported in the trade media outside Iran over the last six months or so, both Allianz SE and Munich Reinsurance said that they would suspend their business in Iran. This decision will have very little impact on Allianz, but may cost Munich Re around EUR10mn in annual reinsurance premiums.
Arguably the main problem is the conduct of monetary and fiscal policy. In spite of substantial revenues from oil production, the government has for a long time run substantial fiscal deficits, which have been monetised. As we explain in this report, the structural deficits are mainly the result of subsidies (for instance in relation to the price of gasoline). The consequence is that, for much of the last decade, Iran has experienced inflation of 12-15% a year, although the rate rose 27% in 2008/09.
High inflation distorts the impact of prices and complicates competition by companies (and insurers) on the basis of price. Furthermore, it shortens the perspective of economic actors. For Iran, one consequence has been the non-development of life insurance, which by its nature involves long-term relationships between underwriters and their clients. The history of persistent high inflation sets Iran apart from all other countries in the Middle East whose insurance sectors are profiled by BMI.
As we have discussed in previous reports, Iran is moving gradually towards the liberalisation of financial services. About 75% of the market (in terms of gross written premiums) is accounted for by the four large, state-owned insurers – Bimeh Iran, Bimeh Asia, Bimeh Alborz and Bimeh Dana. The remainder includes 16 relatively new private sector companies, including Bimeh Moallem, Bimeh Parsian, Bimeh Karafarin and Bimeh Razi.
In this report we continue to provide a breakdown of the insurance sector by line from the point of view of the regulator or trade association. In Iran in 2008 comprehensive motor insurance (presumably compulsory motor third party liability, or CMTPL) was the largest line in the non-life segment, accounting for about half of gross written premiums. Other major lines included motor (CASCO), health, fire and liability insurance.
We have been able to ensure that the report includes actual data for 2008. We have also generally been able to use data published during 2009 to adjust our forecasts for the year as a whole. We expect total premiums in 2009 of IRR50,889,347mn. This comprises non-life premiums of IRR48,223,890mn and life premiums of IRR2,665,457mn. In 2014, the corresponding figures are forecast to be IRR 95,696,535mn IRR 90,518,340mn and IRR 5,178,195mn respectively. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to rise from 1.49% in 2009 to 1.50% in 2014, and for life density to rise from US$3.64 per capita to US$5.35. BMI’s insurance industry Business Environment Rating for Iran is 35.7 out of 100.
Issues To Watch
Political Risk
BMI does not at this stage expect that the political unrest in Iran will lead to a significant contraction in GDP (in the way that it did 30 years ago at the time of the fall of the Shah). Nevertheless, we recognise that political problems could have an adverse impact on economic activity.
Government Subsidies
Any substantial reduction in government subsidies (on gasoline etc) will be a necessary, although not sufficient, move towards balanced budgets and lower inflation. As explained above, Iran’s insurance sector will remain stunted while inflation remains a problem.
International Activities
The isolation of Iranian insurance companies from the global economy is less than total. Bimeh Iran has minor operations in Gulf Cooperation Council (GCC) countries – and may be able to expand these over the medium term.
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Browse the complete Report on: Egypt Insurance Report Q3 2010
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On paper, Egypt’s insurance market is one of the most promising in the Middle East. By virtually all measures, it is underdeveloped. However, and in complete contrast to the nearby Gulf Co-operation Council (GCC) countries, which have (far) higher per capita incomes than Egypt and which are mostly easier places in which to do business, there is already a significant life sector. The prospects for the economy, which was largely isolated from the impact of the global financial crisis, are favourable. The market is open to foreign competition, and the government is moving slowly towards financial liberalisation.
The Insurance Holding Company (IHC) is the largest player in the market by far. This is the stateowned enterprise through which the government maintains its stakes in Misr Insurance and National Insurance Company of Egypt (NICE). Misr Insurance includes the operations of the eponymous insurance company, Al-Chark Insurance and Egyptian Reinsurance, all of which were merged in 2007. Misr Insurance is a composite insurer, although IHC has been separating its life operations from its non-life operations in preparation for an initial public offering (IPO) of the life business sometime in 2010. NICE, which operates separately from Misr Insurance, focuses on health, pensions and other life products.
Delays in the privatisation of Banque du Caire following the breakdown in negotiations between the government and the National Bank of Greece in 2008 provide a reminder that in Egypt a general statement of official intent to undertake an IPO does not necessarily mean that a deal will take place. According to the Egyptian insurance regulator, total premiums in the year to June 30 2008 were EGP9,943mn. Total premiums written by IHC’s companies amounted to EGP3,905mn, or about 40% of this. However, IHC’s companies’ investment assets account for about 75% of those of the entire insurance sector.
Determining a value for those assets that is both reasonable from the point of view of the government and potential buyers of Misr Insurance’s life operations (or, indeed, anything else that IHC seeks to sell) is one of the major challenges. IHC’s management has indicated that it is in the process of transforming the insurance companies’ real estate assets into a stand-alone real estate ownership/development/management operation. Given the generally favourable performance of Egypt’s economy over recent years and the massive developments that are underway to the east and west of Cairo especially, but also in other parts of Egypt, BMI strongly suspects that the property holdings of IHC’s insurers are latent assets that are undervalued.
The enlargement of Misr Insurance, or, from the point of view of IHC, the combination of an enlarged Misr Insurance with NICE, has undoubtedly produced one of the largest indigenous insurance companies in the Middle East. Furthermore, and in contrast to Tawuniya in Saudi Arabia or Bimeh Iran, Misr Insurance and IHC are truly composite operations. However, even the sale of all of IHC, as opposed to the life operations of Misr Insurance, would not be a particularly large transaction by international standards. We have not seen the latest premium figures for IHC, but assume that they were somewhere near US$800mn in the year to June 30 2009 (assuming a 10% rise over the premiums for the year to June 2008). Press reports indicate that ‘realised’ profits were EGP972mn (US$172mn) in the year to June 2009, while total assets fell slightly to EGP22,900mn (US$4,190mn). According to an article commissioned by the American Chamber of Commerce (AmCham) in Egypt, IHC had 13,000 staff. If these figures are correct IHC has slightly more than half the staff of the AIA business which AIG sought to sell to Prudential plc at the beginning of March 2010 in one of the largest corporate deals of all time. However, AIA’s total weighted premium income, from 20mn customers in 15 national markets across Asia Pacific, was US$11,600mn in the year to November 2009. AIA’s profits before and after tax were US$2,274mn and US$1,437mn respectively. Its total assets were US$90,659mn.
In other words, we suspect that labour productivity may be an issue for IHC – and a challenge that will not necessarily be faced by foreign competitors, who will almost certainly have access to capital at a lower cost than IHC’s companies, which are looking to develop their businesses in Egypt organically. In this report, we continue to provide a breakdown of the insurance sector by line from the point of view of the regulator or the trade association. In Egypt group life products accounted for about one-quarter of overall life premiums in 2007/08. In the non-life segment comprehensive motor insurance (presumably compulsory motor third party liability, or CMTPL) was the largest line, accounting for about one-fifth of gross written premiums. Other major lines, accounting for over one-10th of non-life premiums each, included oil, fire, other motor insurance and accident insurance.
At the time of writing, in June 2010, we have been able to ensure that the report includes actual data for 2008. We have generally been able to use data published in 2009 to adjust our forecasts for the year as a whole.
We expect total premiums for the year to June 30 2009 of EGP10,656mn, which comprises non-life premiums of EGP4,770mn and life premiums of EGP5,886mn. In 2014 the corresponding figures should be EGP21,039mn, EGP9,668mn and EGP11,370mn respectively. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to rise from 0.45% in 2009 to 0.60% in 2014, and for life density to rise from US$13.60 per capita to US$29.39. BMI’s insurance industry Business Environment Rating for Egypt is 47.0 out of 100.
Issues To Watch
The Privatisation Of Misr Insurance’s Life Operations Through An IPO The process would likely add to the overall transparency of Egypt’s insurance sector, whether or not a deal actually takes place.
Foreign Groups In Egypt
Multinationals present include MetLife (following its purchase of ALICO from AIG in March 2010, Allianz and ACE). Crédit Agricole and Etiqa (from Malaysia) have applied for licences. Given that Egypt appears set to achieve steady, double-digit growth in premiums over the next five years, and is home to both non-life and life segments that have moved beyond embryonic levels of development, it is possible that additional companies will look to enter the market.
Islamic Finance
Egypt’s regulators and financial institutions have been less active in promoting Islamic banking and takaful than have their counterparts in Bahrain and Malaysia. Nevertheless, takaful may play a substantially greater part in the overall development of Egypt’s insurance sector than it has to date.


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Browse the complete Report on: Bahrain Insurance Report Q3 2010
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In some ways, Bahrain’s position in the Middle East is analogous to that of Singapore in South East Asia. Both countries are city states, located on islands, with relatively few natural resources – with the result that they have had to develop as regional service centres. Both are home to highly respected central bankcum- regulators that have worked assiduously to promote financial services, including insurance.
Great credit is due to the Central Bank of Bahrain (CBB) that the country’s insurance sector has continued to grow steadily even though Bahrain – like Singapore – was hit hard by the downturn in trade in the wake of the global financial crisis. In the CBB’s quarterly publication, The Review, the edition for Q309 noted that, thanks mainly to the further development of the non-life segment, total premiums in H109 were 9% higher than they had been in the first six months of 2008. In our projections, we have assumed that the growth rate applied for 2009 as a whole.
In short, a downturn in economic activity has been more than offset by a rise in non-life (and almost certainly life) penetration (ie premiums as a percentage of GDP). As the tables in this report show, the effect of the global financial crisis seems to have been that growth in Bahrain’s insurance sector slowed to single figures (just) for one year (2009). The key question, therefore, is: will growth accelerate again? BMI believes strongly that the answer is yes. By virtually all measures, insurance is growing rapidly across the Middle East. Bahrain is the longest established international business centre in the region. Along with Bank Negara Malaysia and the Securities Commission of Malaysia, the CBB has been a major and successful proponent of Islamic finance at the global level. Bahrain and Malaysia are home to important international Islamic finance institutions. Despite the financial problems of some issuers of Islamic bonds in other countries in Q409, Islamic finance continues to develop rapidly from a low base. A glance at the CBB’s website shows that central bank recently issued a licence to Zurich Insurance Services, so that the multinational Swiss giant can provide non-life services to its large corporate customers through Bahrain. Zurich has been active in Bahrain’s life segment for some time. In late 2009 the central bank granted a licence to Hardy ARIG Insurance Management, so that it could develop a reinsurance joint venture (JV) in Bahrain. Hardy Underwriting Bermuda Ltd is a specialist insurer and reinsurer at Lloyd’s of London, while Arab Insurance Group (ARIG) is a leading regional reinsurer. ARIG is owned by the governments of the UAE, Libya and Kuwait, as well as by private interests in the UAE, Kuwait and elsewhere, but its head office is in Bahrain. According to the CBB, ‘the new company will initially focus on construction and engineering business, along with onshore energy risks, and will look to develop further lines in due course.’
Bahrain’s non-life insurance sector continues to be dominated by two large companies, Bahrain Kuwait Insurance and Bahrain National Insurance, which together account for about one-third of gross written premiums in that sector. Other large players in the sector include Takaful International, Al Ahlia Insurance, Gulf Union Insurance & Reinsurance, AXA Insurance (Gulf) and ACE American Insurance. In addition, 15 other, smaller companies participate in the non-life market. The life sector is dominated by Life Insurance Corporation (International) and Zurich International, which together account for approximately two-thirds of gross written premiums. Eight other players share the remaining third of the market share for the life sector.
In this report we provide a breakdown of the insurance sector by line, from the point of view of the regulator or trade association. In Bahrain in 2008 comprehensive motor insurance (presumably compulsory motor third party liability, or CMTPL) was the largest line in the non-life segment, accounting for a little under half of gross written premiums. Other major lines included fire, property and liability; medical; and engineering cover.
At the time of writing, in June 2010, we were able to ensure the report includes actual data for 2008. We were able to use data that has been published in 2009 to adjust our forecasts for the year as a whole. BMI expects total premiums in 2009 of BHD204mn. This comprises non-life premiums of BHD147mn and life premiums of BHD57mn. In 2014 the figures are forecast to be BHD527mn, BHD375mn and BHD152mn respectively. In terms of the key drivers underpinning our forecasts, we forecast non-life penetration to rise from 2.78% in 2009 to 3.50% in 2014, and for life density to rise from US$151 to US$474 per capita. BMI’s Insurance Business Environment Rating for Bahrain is 56.9 out of 100.
Issues To Watch
Continued Growth
Official reports that quantify the growth of premiums, profits and assets in H209 should be available by mid-2010. Assuming that the trends in H109 remain intact (which appears reasonable, given the general improvement in the global economy over the last year), the reports should provide confirmation that Bahrain’s insurance sector remains in good health and is gaining market share in global terms.
New Participants
Together with the arrival of newcomers such as Zurich Insurance Services and the new Hardy Arig JV, plus any other new initiatives announced by international groups in Bahrain through Q210, the growing premiums provide confirmation that Bahrain’s cross-border business is expanding. Islamic Finance
In the Q309 edition of its publication, The Review, the CBB noted that takaful contributions had risen by 37% (or nearly four times as fast as the insurance sector as a whole) to BHD18mn in H109. The development of Takaful should continue to evolve as an important growth driver over the coming years.

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Browse the complete Report on : United States Insurance Report Q4 2010

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This is BMI’s third report on the US’ insurance sector. The main aim of this report is to analyse the US’ non-life and life insurance segments in a global context.
One of the challenges revolves around the way in which accident and health insurance is treated. In most countries whose insurance sectors are surveyed by BMI, health insurance is considered part of the nonlife segment. In the US, however, only is small proportion of the entire health insurance sector is provided by property/casualty insurers, which are broadly analogous to non-life or general insurers in other countries. A larger proportion of health insurance is provided by life/health insurers, which, but for their involvement in accident and health insurance, would be broadly analogous to life insurers in other countries. However, the majority of health insurance coverage is provided by specialist health insurance plans, which are considered generally (and by us) to lie outside the mainstream insurance sector.
In order to determine a data series for the US non-life segment that is consistent with those calculated for other countries, we have used as a starting point the property and casualty direct premiums disclosed by the Insurance Information Institute (III) in its 2010 Insurance Fact Book. We have added the net health insurance premiums identified by the American Council of Life Insurers (ACLI) in its annual statistical publications. Accordingly, we consider that non-life premiums rose from US$598.83bn in 2005 to US$637.20bn in 2006, US$651.08bn in 2007 and US$654.65bn in 2008. These figures include health premiums written by life insurers that rose from US$118.69bn in 2005 to US$141.20bn in 2006, US$151.46bn in 2007 and US$165.03bn in 2008. In relation to 2009, we have assumed that gross premiums contracted by 2%. The III’s review of the Property & Casualty insurers’ 2009 results noted that net premiums shrunk by 3.7%.
Net premiums in Q110 were 1.3% lower than they had been in the previous corresponding period. 2009 marks the first occasion since the Great Depression of the 1930s that net premiums have fallen for three consecutive years. For the time being, we are looking for another 2% contraction in premiums in 2010. Meanwhile, life premiums (actually mostly contributions to individual and group annuities, together with premiums for individual and group life insurance, together with minor lines), rose from US$447.30bn in 2005 to US$478.48bn in 2006, US$515.26bn in 2007 and US$520.92bn in 2008. It appears to us that the health plans wrote around US$437bn in 2008. This is not included in our figures.
However, 2009 was a particularly challenging year for the life segment. A study of the top 25 life/health insurance companies by AM Best, which was published in March 2010, found that net premiums of these organisations contracted by 17.9% to US$465bn in 2009. In its annual review of the global insurance industry, Swiss Re indicated that life premiums in the US fell by 15%. This slump was ‘unprecedented’, as ‘weakening consumer demand and capacity constraints adversely impacted new business in all major business lines.’
Unsurprisingly, given the volatility of global financial markets in Q408, savings and equity-linked products suffered the most.
For the time being, we are looking for life premiums to contract by another 2% over 2010 as a whole. Nevertheless, we recognise that sales of particular products may contract by much more than this. According to figures published by Beacon Research and the Insured Retirement Institute, and cited by Best’s Insurance News, sales of individual fixed annuities in Q110 fell by 52% - relative to the previous corresponding period – to US$16.7bn or so.
The US insurance sector accounts for about one-quarter of total premiums written by non-life and life companies worldwide. Around one-third of all reinsurance sold worldwide is bought by US firms. Aside from its absolute size, we suggest that it stands out from other national insurance markets for the following reasons:
It is comparatively fragmented, even though a process of consolidation has been underway for some years. Companies such as State Farm (in the non-life segment) and MetLife (in the life segment) have powerful brands, access to economies of scale and several other advantages. Nevertheless, their respective 12% of total property/casualty premiums and 13% of life/health premiums are unusually large in that they are in double digits. Even in analyses of particular lines, double-digit market shares are the exception rather than the norm. Among the health plans, whose premiums we have not included in the premium figures discussed above, the largest player appears to be United Health Group, with a market share of 13%.
Mutuals account for substantial minority of the market. Conventional wisdom would suggest that, in the country with the world’s largest and most sophisticated capital markets, almost all insurance companies would be listed public companies in order to facilitate access to capital. The success and size of companies like New York Life and State Farm is that some of the leading players do not need such access and instead focus on delivering the benefits of mutual status to their policyholders/ members.
Foreign groups account for about one-eighth of each of the non-life and the life segments. Zurich is the largest foreign player in the overall non-life segment, while ING, AEGON and John Hancock have top- 10 positions in the overall life segment. The foreign groups present all have the economies of scale, both within the US and in their businesses elsewhere, to compete.
The US is too big for foreign multinationals to ignore. Absolute size of the opportunity that is available to foreign multinationals means that all large companies with international aspirations should have clear reasons for not being active in the US – if that is their decision. The US economy and insurance sector may not be growing as rapidly as that of say China, but the restrictions and the relative sizes of entrenched local players are far less of a problem. Furthermore, the regulatory environment if vastly more transparent.
Similarly, the vast majority of US insurance companies see no need to pursue expansion abroad. We estimate that AIG accounted for one-sixth of non-life premiums and one-third of life premiums written by US companies outside the US in 2006. In spite of AIG’s well publicised financial problems – which do not stem from its traditional property/casualty or life/health businesses – we suspect that the same is broadly true today. In spite of its disposal of key businesses in Brazil and Taiwan over the last year or so and many smaller assets, AIG is still the US insurer with the largest global footprint. However, its global orientation makes AIG the exception rather than the rule.
Reinsurance is the main section of the market where foreign and (ultimately) foreign-owned companies have the edge. The Lloyd’s market in London, leading Bermuda-based reinsurers, such as XL and multinationals such as Swiss Re, Munich Re and Hanover Re, account for about 80% of the reinsurance premiums written annually in the US.
Unsurprisingly, auto-related lines are enormous businesses for the non-life insurers. In 2008, for instance, private passenger auto premiums amounted to more than US$160.0bn, while commercial auto premiums were in excess of US$26.0bn. However, the sophistication of the US non-life market, together with the high level of litigiousness, means that auto-related lines are a smaller percentage of total non-life premiums than they are in other countries. Conversely, liability insurance is more important in the US than it is in most other markets. Medical malpractice liability insurance alone, for instance, is a US$11.0bn business.
The popularity of individual annuities is an aspect of the US life sector which sets it apart from its counterparts in other countries. Annuities can be fixed or variable, immediate or deferred and are distributed through a variety of channels. In 2008, contributions to ordinary individual annuities were more than US$220.0bn. Contributions to group annuities were nearly US$127.0bn. Ordinary life and group life insurance premiums were US$137.0bn and nearly US$31.0bn respectively.
Diversity in distribution channels is a distinctive feature. In most countries whose insurance sectors are surveyed by BMI, insurers tend collectively to focus on one or two distribution channels. In the US, however, both non-life and life insurers are substantial users of tied agents, independent brokers, in-house sales networks, direct sales channels (including the internet) and (for life insurers), stockbrokers, financial planners and banks. This is another sign of the competitive pressures.
Aside from focusing on particular distribution channels, insurance companies also differentiate themselves by pricing, product features and brand.
Competitive pressures contribute to the typically slow growth rates of both non-life and life segments. Life penetration is also constrained by the abundance of organised savings products that fall outside the purview of the insurance sector. Nevertheless, the absolute increases in premiums that BMI forecasts for the next five years are substantial.
There is no federal regulator of the entire insurance sector. Insurers are subject to regulation by the relevant authority in the state in which they are chartered and must be licensed by regulators in other states in which they operate. Some companies are arguing for a federal regulator to be set up. However, although the existing regime gives rise to interstate inconsistencies and additional costs, it has generally served the insurers and their customers well. Aside from AIG, whose problems did not originate in its insurance businesses, failures of insurance companies have tended to be few and small. The US is an important domicile for captive insurance companies. This is despite the proximity and attractions of well-established offshore domiciles such as Bermuda and the Cayman Islands


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Browse the complete Report on : Canada Insurance Report Q4 2010

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This is BMI’s third report on Canada’s insurance sector. As is the case with our other insurance sector reports, we put the non-life and life segments in a regional and global context. We discuss the main lines and seek to identify the major themes.
In this report, we have been able to incorporate the actual premiums for calendar 2009, as disclosed by Canada’s insurance regulator, the Office of the Superintendent of Financial Institutions (OSFI). Last year, the total premiums written by Canada’s insurance sector amounted to CAD85,233mn. This includes nonlife premiums of CAD55,101mn and life premiums of CAD30,132mn. In 2014, the corresponding figures should be CAD109,107mn, CAD70,827mn and CAD38,280mn respectively. In terms of the key drivers that underpin our forecasts, we are looking for non-life penetration to remain constant at 3.50% of GDP through the forecast period, and envisage that life density will rise from US$780 to US$850 per person. BMI’s proprietary Insurance Business Environment Rating for Canada is 72.0
As in previous quarters, what stands out is the strength and scale of the Canadian insurance sector. The life segment is dominated by three players – Great-West Lifeco (including its subsidiaries London Life and Canada Life), Manulife Financial and Sun Life Financial. All three rank among the 10 largest life insurance companies worldwide in terms of stock market capitalisation. All three have expanded beyond insurance into wealth management and other financial services. All three (but particularly Manulife and Sun Life) have expanded into the US. Manulife and Sun Life are unusual in world terms in that they also own cross-border businesses in the Asia Pacific region. All three would rank as very large insurers in any country.
In short, the processes of demutualisation and concentration over the last decade or so have produced life companies that have the ability to secure funding from global markets in order to undertake large scale deals. Manulife’s 2004 acquisition of US major John Hancock remains a key landmark. In contrast, the non-life segment consists mainly of mutuals and co-operatives that have not needed to raise capital from global markets. The Economical Insurance Group, The Co-operators Insurance & Financial Services, Desjardins Group and Wawanesa Mutual are all obvious examples. The non-life segment, which includes four state-owned monopoly automobile insurance companies (with differing mandates) is fragmented in that no single player appears to have a double-digit market share. This is despite the fact that many of the mutuals – and, indeed, some of the subsidiaries of multinationals such as Aviva and RSA – have in the past expanded by way of acquisition and/or operate through multiple brands. One consequence of the fragmentation and lingering mutualisation of the Canadian non-life segment is that the Canadian property and casualty insurers have had less desire and need than the life companies to seek challenges and opportunities in other countries.
Even a cursory examination of corporate websites shows that across both major segments (with health insurance in Canada provided by life companies) there is a huge variety of strategies. There are different prices, different product lines, different distribution channels (with most companies relying on several), different attitudes to the provision of financial services beyond and above insurance, and different priorities vis-à-vis stakeholders. Even the major banking groups have taken different approaches to insurance. TD Financial Group is a large player in the non-life segment through Meloche-Monnex, and its subsidiaries and affiliates. In the life segment, RBC Life and BMO Life are significant in terms of absolute premiums written, but a fraction of the size of each of the three largest life firms.
A key factor in the strength of the Canadian insurance sector – and indeed the commercial banking sector – has been the regulatory environment. OSFI is concerned primarily with the banks’ and insurers’ capital adequacy. The absence of problems in the wake of the global financial crisis suggests that it has performed its function effectively. Indeed, Canada’s financial institutions are among the best capitalised of any developed country. Some of the credit should also go to the provincial and territory regulators, of which the Financial Services Commission of Ontario (FSCO) and L’Autorité des marchés financiers (AMF) of Quebec are the two most important. The provincial and territory regulators are also concerned with solvency and capitalisation. However, they also oversee the dealings between the various financial institutions and their customers. We suggest that in a global context there are two challenges for the Canadian insurance sector. One is that, being mature and competitive, it is unlikely to achieve rapid growth through our forecast period – this is in spite of its advantages and a generally favourable outlook for the Canadian economy. Although both non-life and life insurance is open to foreign companies, we note that many of the deals that have taken place in recent years have involved sales of Canadian operations by foreign groups who have decided that those businesses are not central to their overall strategies. The second is that, as investors, the Canadian insurers are now so large in a global context that it would be difficult for them to emerge unscathed from any new financial crisis. However, as noted above, Canadian insurers have handled the global financial crisis and its aftermath well.
Issues To Watch
Debate Over Healthcare Reform
Total healthcare spending in Canada has risen from 7% of GDP in the mid-1970s to about 10% of GDP. On current trends, the figure will rise to 13% by 2015 and 17% by 2025. The governments of some provinces, including British Columbia and Ontario, will be spending about 70% of their revenues on healthcare by 2020. In June 2009, the Canadian Life and Health Insurance Association (CLHIA), the trade body for the country’s life and health insurance providers, published a report that included a number of general recommendations to the governments. Central to the recommendations was the concept that the governments should build on the public-private partnerships that are already a key feature of Canada’s healthcare system. Over the medium term, the health insurance companies could be significant beneficiaries of healthcare reform in Canada.
Further Deal-Making
The major life firms have shown that they can successfully fund and execute large scale acquisitions both within Canada and elsewhere. At a time when Canadian insurers enjoy scale and financial strength relative to their peers in other countries, it would not be surprising if they undertook new purchases over the coming year or so. Some of these transactions may be opportunistic, in that they are driven by the problems of the target company. Deal-making within the non-life segment is also a possibility.
Changes In Aggregate Investment Strategy
Collectively, the Canadian insurers represent one of the larger pools of investment assets worldwide, and have successfully managed the challenges of the global financial crisis and its aftermath. Changes to asset allocations will provide a useful indication of how the insurers see the global investment environment in the coming months.


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Browse the complete Report on : Mexico Insurance Report Q4 2010

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Writing in July 2010, we have been able to ensure that the report includes actual data for 2009. Data from Mexico’s insurance regulator, the Comisión Nacional de Seguros y Fianzas (CNSF), shows that total premiums in 2009 amounted to MXN232.90bn. This included non-life premiums of MXN138.23bn and life premiums of MXN94.67bn. We envisage that, in 2014, the corresponding figures will be MXN339.60bn, MXN212.17bn and MXN127.43bn. Our forecasts are driven by an increase in non-life penetration from 1.17% of GDP in 2009 to 1.50% in 2014. We are looking for life density to rise from US$65 per capita to US$110 per capita.
BMI’s Insurance Business Environment Rating for Mexico is 64.5 out of 100.
This quarter, we include a discussion of developments within regional markets, on the basis of results published by major cross-border companies in relation to Q209 or Q309 and the latest information provided by regulators and/or trade associations.


Mexico’s Insurance Sector

Mexico’s insurance sector appears underdeveloped by many metrics. In 2008, for instance, total premiums were about one-fifth of the size of those in Brazil, even though Mexico’s economy is only about one-third smaller and the population is only 45% smaller. This appears unlikely to change anytime soon. Many Mexicans who can afford to use financial services, provided by banks or insurance companies, are willing and able to work with providers in the US.
Partly because of the reconstruction of the banking industry following the financial crisis in the mid- 1990s, the life sector is dominated by major foreign groups, but is sufficiently fragmented to allow substantial competition. According to the CNSF, the five largest players in the life segment accounted for 71% of premiums written in H109. US insurance company MetLife was the largest, with a market share of 31%. It was followed by BBVA/Bancomer (15%), Monterrey New York Life (9%), Mexican group Grupo Nacional Provincial (GNP) (9%) and Citi/Banamex (7%).
The non-life segment is more fragmented. According to the CNSF, the five largest players accounted for 54% of premiums. AXA’s operations in Mexico, enlarged by the purchase of ING Seguros in early 2008, were the largest foreign non-life insurer, with a market share of 13%. Spain’s MAPFRE, with a market share of 5%, was the only other foreign group in the top five. Other leaders included the Mexican groups Quálitas (6%), GNP (12%) and Inbursa (18%).
In other words, premium growth has almost certainly been constrained by competition. Compared to their peers in other major Latin American countries such as Brazil or Chile, Mexican insurers have – at least potentially – been more directly exposed to the problems of the US economy in the wake of the global financial crisis.
Nevertheless, numbers from the CNSF indicate that H109 was far from disastrous for Mexican insurers. Total premiums for the period were MXN12.04bn, which suggests real growth of 8.8% year-on-year (y-oy). We expect total premiums of MXN232.30bn for 2009 as a whole. Virtually all of H109’s growth was generated by property (not autos) insurance. Compared to H108, premiums for credit insurance, earthquake cover, and marine, aviation and transport (MAT) rose by 20-25% in real terms. Fire insurance premiums surged 222% in real terms. The life sector, by contrast, saw real growth of 3.5%.
Among the various lines whose results are quantified by the CNSF, a conspicuous underperformer was auto insurance, for which premiums fell 9.4% in real terms in H109. This was a challenge for Quálitas, which in its semi-annual report reported lower sales by financial institutions, lower policy fees and a slump in premiums relating to motorcycles because of the in-sourcing of business by a major client. Losses and claims and acquisition costs fell as well, so Quálitas’ investment income held up despite the volatility of global markets.
Across the industry, the technical result for H109 was, in real terms, only 4.9% y-o-y lower, at MXN3.17bn. Claims rose 13.5%, to MXN57.67bn, but this was substantially offset by lower transfers to reserves. Thanks to the recovery in financial markets, investment earnings rose by more than 14% in real terms to MXN16.09bn. As a result, overall profits were also up in real terms, by 16.6% to MXN8.54bn. For the year ending June 30 2009 total assets of the insurance sector rose by 12% in real terms to MXN572.87bn.


Issues To Watch

Growth Of Life Segment
Life insurance premiums are growing significantly more slowly than they were in 2006-2007. Given the
competitive pressures in the segment, and the economic challenges still facing Mexico, we expect the segment to stagnate from 2011.
Fire Insurance And Other Non-Life Insurance Lines (Other Than Autos Insurance) The CNSF’s H109 figures highlight that the non-life sector has been boosted by particular lines. We suspect that the surge in fire insurance and other lines will not be sustained. Nevertheless, we forecast double-digit growth in the non-life segment over 2011-2012.

Mexican Fixed Income Markets

At a time when premiums generally are slowing, the continued favourable performance of the local bond markets will be crucial.
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Browse the complete Report on : Brazil Insurance Report Q4 2010

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Writing in July 2010, we have been able to ensure that the report includes actual data for 2009. The industry regulator, the Superintendency of Private Insurance Companies (Superintendência de Seguros Privados, SUSEP), identifies three life lines in its data: VGBL products, retirement savings schemes (of which PGBL products are an important subset) and capitalisation schemes. We have also included health insurance premiums: details are sourced from the Agência Nacional de Saúde Suplementar (ANS), the health insurance regulator. At the time of writing, SUSEP has published data for the first four months of 2010: we have incorporated this information into our forecasts for the year as a whole.
For BMI’s purposes, the non-life segment includes the consolidated insurance figures published by SUSEP except for VGBL products, which are a subset of personal lines that belong to the life segment. We consider that the Brazilian non-life segment also includes the health insurance premiums disclosed by the ANS.
Meanwhile, we consider the life segment to consist of three elements: VGBL premiums, private pension contributions (which are dominated by premiums for PGBL products) and contributions to Capitalizacão savings bonds.
Taking this approach, we consider that total insurance premiums amounted to BRL157.33bn in 2009. This included non-life premiums of BRL108.84bn and life premiums of BRL48.48bn. Our forecasts suggest that the corresponding figures in 2014 will be BRL264.10bn, BRL181.01bn and BRL83.09bn. In terms of the key drivers that underpin our forecasts, we are looking for non-life penetration to rise from 3.53% of GDP in 2009 to 4.00%. These figures are relatively high by the standards of developing countries with Brazil’s per capita GDP: however, as noted above, they are inflated by the inclusion of health insurance premiums. We look for life density to rise from US$125 per capita in 2009 to US$242 in 2014.
BMI’s Insurance Business Environment Rating (IBER) for Brazil is 67.4 out of 100.
We include a discussion of developments within regional markets, on the basis of results published by major cross-border companies in relation to Q209 or Q309 and the latest information provided by regulators and/or trade associations. The first nine months of 2009 were an excellent period for Spain’s MAPFRE, arguably the leading cross-border insurance group in Latin America. In October 2009 MAPFRE signed a memorandum of understanding with Banco do Brasil to establish a strategic alliance in the personal, property and motor lines in Brazil.
Brazil’s insurance sector is the beneficiary of several major trends. Perhaps the most important is the general improvement in investors’ perceptions of risks associated with the country. The overall tendency towards lower long-term interest rates and stronger currency helps in several ways. Greater economic stability is conducive to the development of non-life insurance, and greater availability of long-term local currency assets is helpful for the development of organised savings

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ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.


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Browse the complete Report on : Kenya Insurance Report Q4 2010

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This is BMI's second report on Kenya's insurance sector. As is the case with our other insurance sector reports, we seek to place the non-life and life segments in a regional and global context. We discuss the main insurance lines and describe the competitive landscape in some detail.
Kenya provides evidence that the insurance industry can thrive in Sub-Saharan Africa in face of highly challenging economic and – especially – political problems. At the end of 2008, the combined assets of Kenya's 42 insurers amounted to KES146.12bn, or nearly US$2bn. Both the non-life and the life segments sustained double-digit growth over the last five years. One does not need to make aggressive or radical assumptions to produce a scenario where the double digit-growth continues through the forecast period.
The development of the life segment is particularly encouraging. Life premiums account for about onethird of the total. Notwithstanding the fact that Pan Africa, the largest player in the segment, with a market share of around 20%, has a strategic alliance with a subsidiary of South Africa's Sanlam, the segment is dominated by local firms. In essence, Kenyan institutions are gathering long-term savings from Kenyan investors. In this respect, Kenya is hugely different from Nigeria and even from much richer and more stable countries in the Middle East.
As is the case in the Middle East, and to a lesser extent in Nigeria, the insurance industry is strengthened by its links with local entrepreneurs. In 1980, the government introduced laws that required local ownership of the insurance companies. As a result, insurers have since tended to be owned and/or run by local entrepreneurs with a deep understanding of the challenges of doing business in Kenya and well developed tolerance for risk.
A side effect, probably unanticipated by the government nearly 30 years ago, is that Kenya's insurance sector is fragmented. In this respect it is similar to its counterpart in Nigeria, but also the Philippines and Indonesia or the UAE, where local entrepreneurs often see insurance as a valuable adjunct to the other activities undertaken by the family conglomerate. The three largest non-life companies – The Jubilee, APA and Kenindia – together speak for about one-quarter of total premiums written in the segment. APA is the consolidation of Apollo with Pan Africa's non-life operations. However, there is scope for much more consolidation.
AIG's Kenyan subsidiary – now renamed Chartis – is one of the 10 largest non-life firms. It is important to note that foreign insurers are not entirely absent from Kenya. Aside from Sanlam's involvement with Pan Africa, Old Mutual – another giant from South Africa – has a small life operation in Kenya. Four major Indian insurers – New India Assurance, Oriental Insurance, United India Insurance and Life Insurance Corporation of India – are minority shareholders in Kenindia. What all these foreign groups have in common is that, relative to multinational insurance companies from developed countries, they have a high tolerance of emerging markets risk and low exposure to the volatility of capital markets in the wake of the global financial crisis.
Another indicator of the strength of Kenya's insurance sector is that non-life insurance has moved well beyond motor-related lines. Figures published by the Association of Kenya Insurers (AKI) indicate that private and commercial motor insurance respectively generated gross premiums of KES6,102.7mn and KES9,322mn in 2008. The next largest lines were personal accident (KES7,070mn), fire-industrial (KES4,322.7mn) and workers' compensation (KES2,145mn).
Writing in early 2009, AKI Chairman Nelson C Kuria suggested that the long-term future for the insurance sector was bright, given the low levels of penetration, increasing usage of information and communication technology (ICT), research, product development and focus on new distribution channels. Nevertheless, the challenges are significant. One is that that many Kenyans have little understanding of insurance and/or a low opinion of it. A survey by the AKI in 2003 found that the development of group life, for instance, was hampered by the rigidity of products, the limited scope of coverage, inefficient marketing and legislation. The providers had to deal with a lack of consumer education, the lack of incentives to employers, the domination of the market by brokers and cut-throat price competition. The comments from Kuria in his introduction to AKI's 2008 annual report (which was released in early 2009) indicate that these problems persisted nearly seven years later. However, Kuria was hopeful that the new insurance act would 'accelerate the growth and development of the insurance sector tremendously'. We discuss a number of scenarios as the country moves away from the disputed 2007 election and towards the next elections in 2012. In most scenarios, the insurance industry – which has weathered very difficult conditions in 2008 and 2009 – should continue to thrive. A wholesale breakdown in law and order would be disastrous. As the AKI notes in its 2008 annual report: 'Major man-made disasters caused losses of US$7.8bn in 2008, with large-scale industrial fires, explosions and losses in the energy sector at the top of the list. Man-made catastrophes resulted in 5,600 deaths in 2008.' Most casualties were the result of shipping and boating accidents. However, social unrest and bombings also claimed many lives.
Issues To Watch
Product Development And Pricing
In common with their counterparts in other countries in Africa and the Middle East, the Kenyan insurers
have often produced sub-optimal and undifferentiated products and have competed on price. This needs to change if the profitability of the sector is to grow. In 2008 the industry made a net profit before tax of KES5.05bn, with total assets of around KES146.12bn. During that year 21 companies, or about half the total, made underwriting profits. Collectively, life insurers suffered an underwriting loss of KES1.29bn.
Further Industry Consolidation
Given that commercial challenges are limiting the profitability of many players, we would see any consolidation as a favourable development. We would also be heartened by any move of the foreign groups who are already present in Kenya to increase their investment. We recognise that the small present (and, in world terms, future) size of the market means that Kenya is unlikely to be seen as a country of opportunity by many major multinationals.
Actions Of The IRA
From May 2007, regulatory responsibility for the insurance sector was transferred to the Insurance Regulatory Authority (IRA). In 2008, the IRA published a corporate plan that indicates it has a clear understanding of the problems facing the industry. The IRA is likely to have a role in the development of the new insurance act (as has the AKI). The IRA's actions over the next year or two will provide an indication of the extent to which the industry's problems and challenges are likely to be overcome.


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ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.

 Contact:

Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
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