Fitch highlights implications of MetLife restructuring for the industry
The proposed restructuring of MetLife’s business announced this week will have significant implications for the global insurance industry according to Fitch. The ratings agency says that with the industry facing increased regulatory and competitive pressures “the prospect of increasing regulatory capital requirements associated with MetLife's nonbank systemically important financial institution (SIFI) designation weighed heavily in its decision.” Fitch believes that there will be further restructuring within the global insurance industry as firms seek to avoid higher regulatory burdens and capital requirements as a result of being deemed ‘too big to fail’.
Canadian insurance body backs insurance fraud focus
A focus on reducing insurance crime has been launched by the Insurance Bureau of Canada. January is Crime Stoppers Month and the bureau is highlighting the significant issue of insurance fraud, which it wants Canadians to realize is not a victimless crime. The IBC has been successful in lobbying for greater penalties for those convicted of insurance crime but continues to work with law enforcement agencies to push for further action. Rick Dubin VP of investigative services at IBC says that the message to policyholders is that it is premiums of honest Canadians that are pushed higher by actions of fraudsters.
Chinese market surged in 2015
The insurance market in China grew by around 20 per cent in 2015 with income from premiums hitting a record U$389 billion as consumers became more aware of protection. Asiaasset.com reports that life insurance made up 54 per cent of the premium incomes with property insurance amounting to 32.8 per cent and experiencing growth of 11 per cent year-over-year. Zhou Yanli, VP of the China Insurance Regulatory Commission commented: “With the country’s fast growing economy, the insurance industry has played an increasingly important role in providing social protection in China.”