Hong Kong insurers’ values soar
The insurance sector is outperforming other financial services in Hong Kong. Thomson Reuters data, reported by the FT, shows that the region’s 8 publicly-listed insurers are valued at a median 10.7 times their projected 12-month revenue compared to banks at 5 times and securities brokers at 8.5 times. Insurance is growing in Hong Kong and China with a growing middle class wanting to secure their increasing assets. Insurance penetration is still low relative to Japan and many western nations, giving plenty of scope for growth and higher returns to investors. The challenge though is to overcome a reluctance to purchase cover which does not guarantee a payout as insurance is seen by many in China as an investment rather than a safeguard.
Chubb launches ‘trolling’ policy
Chubb Insurance has launched a new cyber bullying policy in the UK. The insurer has introduced the coverage for high-worth individuals who may be subjected to online abuse or ‘trolling’. The policy covers up to £50,000 ($76,000) for costs including professional assistance, time taken away from work and even counselling. The policy is aimed at parents who may be concerned about their children being targeted by cyber bullies but adults can also take out the protection, which is likely to be of particular interest to those with high value business reputations.
Insurance industry helps thwart international car theft ring
Canadian police have arrested close to 20 individuals who are alleged to be associated with the theft of 211 high-value vehicles from the Greater Toronto Area. The Insurance Bureau of Canada has praised the law enforcement agencies involved in thwarting the alleged theft of a total of C$11 million worth of vehicles which were bound for lucrative West African markets. The IBC’s investigators worked with law enforcement to reunite the vehicles with their owners and has also worked with agencies in the US, Spain and Belgium to recover stolen vehicles already shipped out of Canada.
"The enormous profits in auto theft attract organized crime. Investigations leading to arrests, such as these significantly interfere with these criminal operations," said Rick Dubin, Vice-President, Investigative Services, IBC. "IBC is committed to supporting our law enforcement agencies in their fight against auto theft, and other insurance crimes so that honest policyholders aren't the ones affected."
Australia may scrap rebates for private health insurance
The Australian federal government is considering scrapping the private health insurance rebate that was introduced in 1999 to help cover the costs of most individual’s premiums. The Telegraph newspaper reports that the 30 per cent rebate is costing the country’s government U$4.3 billion and a reform of the health insurance system would see payments made direct to hospitals rather than the current arrangement.
