Reinsurance / Reaseguro / Resseguro. Dr. Sebastian von Dahlen Santiago de Chile 15 November 2007

Transcription

1 Reinsurance / Reaseguro / Resseguro Dr. Sebastian von Dahlen Santiago 15 November 2007

2 Introduction / Introducción / Introdução Señoras y señores, Disculpen que mi presentación sea en inglés. Mis escasos conocimientos de español y portugués solo me permiten decirles que pueden sentirse dichosos de que me esté limitando a esta sola página. Muchas gracias! Estimados senhoras e senhores, Peço desculpa por proferir a minha conferência somente em língua inglesa, mas os meus escassos conhecimentos das línguas portuguesa e espanhola são apenas suficientes para lhes comunicar que se podem considerar felizes que agora acabo por continuar a falar apenas em língua inglesa. Muito obrigado! 2

3 Today s schedule on IAIS and reinsurance Index of contents A) During PANEL (now) Some background on: Current IAIS reinsurance work Selected Latin American data B) During CASE STUDY (later) Some basic insights: Reinsurance supervision Problems and solutions 3

4 Importance of the IAIS IAIS Mandate Standards and guidance for insurance supervision Assist national supervisors Promote cooperation among insurance supervisors Coordinate with other financial sector and international organizations (Basel Committee, IOSCO, Joint Forum, Financial Stability Forum, etc.) 4

5 Reinsurance and the IAIS Executive Committee Reinsurance Subcommittee Solvency Subcommittee Accounting Subcommittee (incl. Insurance Contracts) Reinsurance Subcommittee Technical Committee Governance & Market Conduct Compliance Subcommittee Subcommittee Financial Conglomerate Subcommittee Pension Coordination Task Force ICP Rev For Reinsurance Transparency Subgroup 1. Main focus on Mutual Recognition Subgroup Mutual Recognition Reinsurance Transparency Executive Committee Technical Committee 2. Work also on Reinsurance Subcommittee Revision of IAIS Papers Reinsurance Transparency Subgroup Mutual Recognition Subgroup 5

6 Reinsurance Transparency Subgroup Global Reinsurance Market Report Participants of report Supervisors from Bermuda, France, Germany, Japan Switzerland, the UK and the USA 56 significant reinsurance entities Representing a very high proportion of the worldwide reinsurance market Aim of report Increase transparency concerning worldwide reinsurance market Indicate resiliency of the reinsurance market Source of information for supervisors around the world 6

7 IAIS Global Reinsurance Market Report Edition 2007 new structure & new layout Insights to relevant reinsurance market developments New in the report: more reference to the overall capital market Example: Average CDS spreads for reinsurance, insurance and banks Banks Insurance Reinsurance Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 7

8 IAIS Global Reinsurance Market Report Edition 2007 some life reinsurance focus Chapter III provides assessments on: a) pandemic risks b) mortality risks e.g. potential avian flu e.g. graph below 8

9 Mutual Recognition Subgroup Mutual Recognition of Reinsurance Supersvision Reinsurance protection Important risk mitigation tool for insurers Provide economic benefits for primary insurers and their policyholders Example: major natural catastrophes (e.g. severe storms) - Reinsurance provides protection - Global risk diversification is important Supervisors should support, if possible and appropriate, a worldwide diversification of reinsured risks 9

10 Mutual Recognition Subgroup IAIS aim concerning mutual recognition To facilitate a system of efficient insurance and reinsurance supervision: avoid unnecessary burdens Example: appropriate information sharing among supervisors instead of a duplication of supervisory requests Please check IAIS website for the recently published Discussion Paper on the Mutual Recognition of Reinsurance Supervision 10

11 Reinsurance Subcommittee Additional work planned for the near future Revision and updating of existing reinsurance related IAIS papers Standard on the evaluation of the reinsurance cover of primary insurers Guidance Paper on finite reinsurance 11

12 Insurance and Reinsurance Some insights into Latin America Premium shares Premium growth Market penetration Growth expectation 12

13 Latin America Non Life premium shares Latin America NL Premium shares* within LA (2005) Brazil Mexico Venezuela Argentina Colombia Chile Ecuador Peru Dominican Republic Jamaica Costa Rica Panama Guatemala Uruguay Trinidad and Tobago El Salvador Bahamas Barbados Honduras Bolivia Nicaragua Paraguay 1.5% 1.5% 1.4% 1.0% 1.0% 0.8% 0.8% 0.7% 0.7% 0.7% 0.6% 0.6% 0.4% 0.3% 0.2% 0.2% 5.6% 4.5% 9.2% 9.1% 21.4% 37.8% 87.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: VERA 13

14 Latin America Non Life premium growth NL real premium growth * Venezuela Chile Mexico Argentina Latin America World Colombia Brazil 2.3% 6.5% 5.4% 4.9% 4.4% 3.9% 12.5% 12.3% 0% 5% 10% 15% Source: Munich Re 14

15 Penetration Non-life (%) Latin America Insurance market penetration 6 year: 2005 Source: VERA 5 UK USA 4 Global trend line Germany S. Korea France 3 South Africa Taiwan Canada Italy Venezuela Australia Norway Russia 2 Brazil New Zealand Japan Colombia Chile Argentina Singapore 1 Mexico India China Philippines 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 GNI per capita in purchasing power parities (PPP-US$) 15

16 Chile Growth expectation for a primary insurance market NL Trend BIP nom. (downside) Global Trend NL NL Trend (GNI PPP) source: AACH (history), Munich Re 16

17 Reinsurance / Reaseguro / Resseguro A source for further questions und answers: 17