Axco THE IMPORTANCE OF COMPLIANCE ABROAD JANUARY 29 TH, 2014 ERV, STOCKHOLM.

Axco

THE IMPORTANCE OF COMPLIANCE ABROADJANUARY 29TH, 2014

ERV, STOCKHOLM

202 ABOUT AXCO

© Axco Insurance Information Services 2014

About Axco

With over 40 year’s experience in researching and delivering industry intelligence, Axco provides business-critical compliance and market data on non-life, life & benefits and employee benefits markets across the globe.

Axco information is relied upon by a diverse range of organisations and our client base includes the world’s foremost insurers, reinsurers, brokers, and employee benefits professionals.

Our unique business model and methods of research have enabled us to develop an extensive suite of products comprising in-depth reports, profiles, Q&A databases and information platforms.

303 THE AXCO BUSINESS MODEL


The Axco business model

Axco operates under a mutualised outsourcing model

We look to build long term partnerships with both our clients and information and data sources

We undertake to understand our client’s individual requirements

We prioritise frequent interaction with our clients

We are committed to developing new and innovative methods of information delivery.

Axco DatabaseCentral Global Industry

Repository

Local Offices

Other Brokers & Insurers

Regulators

Associations

Global Users Feedback

In-house research

Partners

Specialist Compliance

Research TeamCopy of Axco report

Interviews, Correspondence

Copy of Axco report

Interviews,

Correspondence

Copy of Axco report

Interviews, Correspondence

04 HOW IS AXCO INFORMATION RESEARCHED


05 INTERNATIONAL INSURANCE REQUIREMENTS


The challenges of international insurance

International companies, international operations = International risks

196 countries in the world = Hundreds of jurisdictions, cultures, insurance practices

Spectrum of insurance market development: Emerging/low expertise to Developed/well-funded

Aims of regulations: laws designed to protect consumers of insurance and financial systems not international companies

Accepting grey answers: Complexity (of the world), Ambiguity/Uncertainty (of insurance regulations)

606 COMPLIANCE ABROAD CHECKLIST


‘Compliance Abroad’ checklist

Market environment

Insurance regulations and supervisory authority

Is non admitted permitted?

Local coverage requirements

Compulsory insurances

Taxes and charges

Local underwriting expertise and capacity

07 Market Environment


Market environment

Ghana:

Resources51.9% Urban25.31 Million Exports

Brazil:

Events84% Urban198.66 MillionNatural

Resources

808 Market Environment


Market environment

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

0

10000

20000

30000

40000

50000

60000

70000

0

100

200

300

400

500

600

700Ghana

GDP (mn)

Written Premiums (mn)

GDP

(mn)

Writt

en P

rem

ium

(mn)

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000Brazil

GDP (mn)

Written Premiums (mn)GDP

(mn)

Writt

en P

rem

ium

s (m

n)

09

Specific insurance regulations and supervisory authority

Ghana

Proposed legislation can take years to reach Parliament

Brazil

Four resolutions to just set out the basis of premium and loss reserves

Rapidly developing insurance and reinsurance market

Supervisors and Regulators want to protect local companies

Insurance Law 1989

Supplemented by Insurance

Regulations 1990

Insurance Act 2006

CNSP Resolution

no. 162 – 26 December

2006

CNSP Resolution


2007

CNSP Resolution


2008

CNSP Resolution no. 204 –

28 May 2009

Market Environment


010

On what basis can I write Insurance?

Four main ways to write international business

Admitted – Policy is issued locally from a locally registered and based company

Cross Border Agreements – e.g. Freedom of Services

Fronting – Local office used and reinsured out

Non Admitted – Unauthorised Insurer

Insurance Options


11 What is Non Admitted?


What is meant by non admitted?

Definition. Non-admitted insurance refers to the placing of insurance outside the regulatory system of the country in which the risk is located. A non-admitted insurance policy is one that may be issued abroad or the risk(s) may be included in a global master policy by an insurer unauthorised in that country. An authorised insurer is one which is permitted to do business in a country (or region) by the local supervisory authority.

12 International Insurance Programme


13

Admitted

Locally Licensed and Regulated

International Insurance Programme


14

FOS

International Agreements As if Locally Licensed Taxes and Charges



15

Locally Licensed Office

High Level of compliance confidence

Local Broker Policy Wording Policy Issue Premium Payment and

Terms Local Capacity



16

Non Admitted is Permitted

Insured’s Initiative Exempt lines of business Compulsory Insurances Taxes and Charges

Claims management



17

Non Admitted NOT

permitted

Fronting Partner

Abide by all local regulations Long term partnership Local knowledge Not ideal for one time

placements Exposed to Reinsurance taxes Expensive



18

Non Admitted NOT

permitted

Penalties Prison Reputational Damage Claims payments

Central CoverDIC/DIL, Financial Interest

Clause, Master Policy



19 International Insurance Programme


20

Non Admitted NOT

permitted

Central CoverDIC/DIL, Financial Interest

Clause, Master Policy

Fronting Partner

Non Admitted is Permitted

Locally Licensed Office

FOS

Admitted



21 How can Axco help?


HOW CAN AXCO HELP?

Critical to have knowledge in order to continue writing compliant programmes

Axco’s remit is to provide information

On the ground research: Axco visits 170 + countries

Avoiding information overload: ‘Less is More’ product development = right information for the right person at the right time

Integration of information sources and product design: portals, annotations, click-throughs

Combine that information with your expertise

KNOWLEDGE

Who to talk to

What questions should you be asking

What pitfalls should you be looking out for

Never a straight forward black and white area

22 AXCO PRODUCTS


Insurance Market Reports Comprehensive country by country insurance market information

Non-Life (Property & Casualty) and Life & Benefits.

Global StatisticsCurrent and historical statistics covering non-life and life &

benefits markets in over 180 territories worldwide.

Regulatory AlertsMonthly e-mail alerts reporting on key developments in regulation, legislation and premium taxation.

InsightUsing Q&A structure, Axco Insight provides a customisable overview of global insurance markets.

Employee Benefits ReportsComprehensive coverage of worldwide

employee benefits markets.

Clinical TrialsClinical trials insurance information for over 170 territories, including market and compliance data.

Compliance PointA single “go to place” combining regulatory and

tax compliance information.

Country Benefits ProfilesConcise information on state and compulsory benefits and typical employer practice in 69 countries.

CIMS Market ProfilesFocused information on key aspects of the market and compliance requirements in over 170 territories.

NON-LIFE INSURANCE MARKET REPORTS (IMR)


23

Non-Life Insurance Market Reports

Non-life insurance market information for over 170 countries

Essential legislative, insurance regulatory and tax compliance information

Insurance market overview, distribution channels, market size, structure and key players

All major lines of non-life business

Comprehensive appendices containing market statistics, company statistics, and directory of key market contacts

Create customised reports to facilitate client presentations and business tendering

INSIGHT COMPLIANCE


24

Insight Compliance

Delivering global non-life (P&C) insurance regulations and taxes at a glance

Single point of reference for non-life insurance regulatory and tax compliance requirements

Question & Answer structure, with topics compiled from clients' most frequently asked compliance questions

Line of business-specific regulation for over 170 territories

Customise and filter data according to territory, line of business and regulatory topic

25 AXCO COMPLIANCE POINT

Interactive compliance tool guiding users through multinational insurance programmes calculating all taxes and charges that are applicable.

A single “go to place” combining regulatory and tax compliance information.

Market solution tailored to user group needs

Intelligent questioning prompts users for the exact information needed as they progress through the system.

Up to date, transparent and unbiased information from multiple sources.

Auditable trail of decisions and results


Compliance Point

26

For further information about Axco or for product demonstrations please come and find us afterwards.

Thank you

www.axcoinfo.com

Axco Insurance Information Services10 Old Broad StreetLondonUKEC2N 1DW

Tel: +44 20 7374 5252Fax: +44 20 7374 5277Email: [email protected]

Carol Au-YoungAli Mufti

Teams of London-based in-house research analysts, editors and statisticians ensure that information is maintained and updated to the highest standards.

We welcome client enquiries and feedback which are integral to the continued development and enhancement of our products.

Axco THE IMPORTANCE OF COMPLIANCE ABROAD JANUARY 29 TH, 2014 ERV, STOCKHOLM.

Documents

developing insurance

consumers of insurance

insurance act

specific insurance regulations

market environment slide

local companies insurance

information platforms

market environment ghana