edition
• OCBC Bank announces bid to acquire remaining 11.56% stake in Great Eastern Holdings, with plans to delist the insurer from the Singapore Exchange.
• The acquisition would look to integrate Great Eastern more closely into OCBC’s broader strategy, amidst growing demand for wealth management and insurance products.
• IRDAI mandates life and non-life insurers to meet specific rural and social sector quotas.
• Life insurers must insure a minimum percentage of lives, general insurers a minimum percentage of dwellings, shops, and vehicles, and health insuers a minimum percentage of health and personal accident policies.
• Insurers are required to submit quarterly reports detailing their compliance with these quotas, including specific metrics on coverage within these rural areas.
• Emergency Services Levy Insurance Monitor Bill introduced to Australia’s lower house of parliament on Thursday.
• Bill looks to reform emergency services levy, potentially cutting property and contents insurance premiums by up to 15% for homeowners and 23% for businesses.
• IPART appointed as Insurance Monitor, with powers to issue penalties up to AU$10m for insurers not passing savings to consumers.
• Reform aims to distribute funding more evenly across all property owners.
• New circular allows banks to partner with an unlimited number of insurers.
• The directive requires formal contracts for bank-insurer partnerships and standardises commission rates to prevent excessive fees.
• Changes likely to benefit smaller insurers by enabling them to compete more effectively.
• Porch Group, a U.S. homeowners insurer, has filed a lawsuit against China Construction Bank (CCB).
• The lawsuit alleges CCB enabled employees to conspire with insurtech firm Vesttoo to issue fake reinsurance letters of credit, resulting in substantial financial losses for Porch Group’s subsidiary, Homeowners of America Insurance.
• Vesttoo was a promising insurtech startup that developed a platform to connect insurers with capital market investors as an alternative to traditional reinsurers.
• Inquiry highlights need for government action to help address rising insurance and operational costs threatening Australia’s live music festival sector.
• Interim report recommends Government coordinate with festivals and insurance industry to ensure access is available to small and medium operators.
• Insurance premiums for festivals have reportedly surged up to ten times since 2022.
• South Korean insurers are focusing on women-specific products.
• Move is driven by higher insurance enrolment among females aged 60-65 compared to males, as well as growth in the femtech market, which focuses on women’s health services.
• Initiatives include Hanwha General Insurance’s research institute and products from Heungkuk Fire & Marine Insurance and DB Insurance targeting female health needs.
(Re)in Summary
• AM Best affirms IFS Rating at 'A-' and ICR rating at 'a-', both with a stable outlook.
• Insurer is a prominent provider to allied health professional associations and saw fluctuating operating performance due to COVID-19, weather events and financial market volatility.
• However, AM Best reports improved expense ratio due to increased operational scale and cost management.
