December 15, 2008

International reinsurance prices have been domestic insurance and reinsurance premiums or rate increases

A few days ago in Germany at a meeting, a number of reinsurance companies and insurance companies to meet, arrange with the terms and conditions of the contract renewal. Munich Re board member of the media Lude Sen said that reinsurance will reach double-digit price increases.

Munich Re's reinsurance business director in charge of Torsten Jeworrek said, "We are facing a market with the United States is very similar to the 9.11 incident, the risk is increased and the safety factor is reduced, we hope to continue the contract in 2009 when the price More than 20%. "

And a state-owned insurance company marketing director, told reporters: even the risk involved in investment income, as well as reduce the premium increase can not guarantee that his insurance company is currently considering the sale stopped in a few sections of the pension bonus, on behalf of the higher The rate of insurance products.

Reinsurance giant investment impairment

According to Swiss Re published quarterly portfolio as well as hurricane claims is the main reason for the loss in the third quarter, third quarter earnings per share for the Swiss franc -0.93.

In the Quarterly Bulletin released on the same day, Swiss Re was trading down 7.4 percent to 47 Swiss francs, while the share price this year has shrunk about 37% of the total market value fell to 17.9 billion Swiss francs.

Hannover Re Quarterly Bulletin revealed that its third-quarter loss of 395,000,000 euros, while its net profit for the same period last year 284,000,000 euros. At the same time, Hannover Re net income to -1.43 billion euros in the same period last year of 577,000,000 euros substantially reduced its losses as high as 445,000,000 euros.

Hannover Re noted in the Quarterly Bulletin, in 2008 the international financial markets as well as the further deterioration of the above-average catastrophe losses in the third quarter led to the deterioration of the operating results of the third quarter and had a significant reduction of the Hong Kong equity holdings.

Quarterly Bulletin of the loss of investors confidence and income are reduced, and these insurance companies a wake-up call. 10 at the end of the summit of the International Reinsurance, Munich Reinsurance and other international reinsurance companies said on: this year will further tighten underwriting insurance policies cover the price will be faced with substantial price increases.

Domestic prices or lag

"China's insurance market, foreign-funded enterprises and joint ventures will certainly be subject to international reinsurance prices, rose an inevitable trend." Peking University School of Economics, Risk Management and Insurance Department, Associate Professor Dr. Xie Shiqing in "China Times" reporter interview Said.

Professor Xie admitted: China Insurance Regulatory Commission on the territory of insurance regulation is more stringent, the international market prices in the domestic acts will be lagging behind.

This reporter has learned that after the 9.11 incident, Munich Re, Swiss Re, as well as many terrorist attacks in the United States to pay about 1,950,000,000 U.S. dollars and 12.8 billion dollars in insurance money, accounting for two companies that year reinsurance premium income of 11.5% That year and net profit of 2 / 3. 9.11 terrorist attacks, the reinsurance giant on the longer one after another to raise the premium rate.

A reinsurance company Insurance Department said that in the Chinese market, international reinsurance business giants are more cautious low-key. France reinsurance little to do reinsurance chief, often based on a follow-up role in the sub business, and greater than its Swiss Re, Munich Re insurance company over the past few years in China did not have a very in-depth penetration.

"The reason is that the prices in the Chinese market itself is relatively low rates, already at the bottom of. In addition, lower interest rates, some foreign insurance companies have to invest some serious losses, the insurance proceeds will eventually be affected So will the adoption of an appropriate way to do something to make up for. "Professor Xie analysis of the case.

At the same time, some reporters from the insurance companies that, because so far this year, as well as damage to the investment business can not be stability in the rapid growth of the insurance field and back office revenues have been put to the test. Several companies have already abolished the end of the year award, and employees do not pay within two years to prepare mentally prepared for the winter.

But Professor Xie Shiqing said: Re Although the current situation is indeed subject to a number of losses, but ultimately survive. The higher level of insurance as a consumer, in tightening the money supply, to reduce the personal income, insurance needs to drop is normal. Insurance bonds as well as the principal investment to the stock market, the real economy, and so on, decreased earnings, declining interest rates will affect the operational effectiveness of the insurance company as a whole, it will do some adjustments to the financial sector but also the normal adjustment.

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