Asia/Pacific
BESTWEEK
Weekly Insurance Newsletter
17 March, 2009 • Issue 14
BEST’S REGIONAL COMPOSITE INDEXES Year-to-Date: U.S. (AMBUS) ▼26.41% • EUROPE (AMBEUR) ▼ 41.67% • ASIA/PACIFIC (AMBAP) ▼ 31.90%
Terror Threats Strain Insurance Capacity
By Iris Lai
After the Mumbai terrorist attacks last November, ter-
rorism activity has intensified in South Asia, as illustrated
by the recent deadly attacks in Sri Lanka and Pakistan,
further exposing the vulnerability of the region.
Increasing terrorist attacks may lead to price hikes for
terrorism insurance, and hence, the issue of affordable
protection. “Insurers need to be aware of the heightened
risk to soft commercial targets in the major cities,” said
Gordon Woo, a terrorism risk expert at RMS, a risk mod-
eling company. Hotels and transportation systems with
open public access are prone to terrorist attacks.
The incidents continue. On March 10, a rebel suicide
bomber associated with the Tamil Tigers attacked a pro-
cession that was part of a Muslim celebration in south- An explosion from a suicide bomber strikes a religious procession of
ern Sir Lanka, killing 14 people and wounding a govern-
Muslim men in Sri Lanka March 10, the latest in a series of terrorist
attacks in South Asia. Increasing terrorist attacks may lead to price
ment minister.
hikes for terrorism insurance, experts say. AP Photo/Krishan Jeewaka
■ Continued: TerrorIsM
BestWeek Asia/Pacific News Digest
A Closer Look
Asia-Pacific Insurers Find
Bancassurance Success
By Iris Lai
A walk on the streets of Hong Kong or any of China’s
cities can show why bancassurance has become so perva-
sive in the Asia-Pacific region: It is always easier to spot a
bank than a grocery shop in these cities.
Over the past decade, the ubiquitous presence of bank-
ing branches in most of the region’s countries has driven the
popularity of bancassurance as a major distribution channel.
For instance, Hong Kong, a city of 7 million people, has 1,223
bank branches with a penetration rate of 18 branches per 100,000
people, compared with 17 branches in New York and 11 branch-
es in Singapore, according to Hong Kong Association of Banks.
■ Continued: Bancassurance
Sompo-Nipponkoa Indonesian Growth Singapore Growth Malayan Team-Up
Merge Allianz Indonesia The life insur- Malayan Insurance teams
Merger will cre- reported strong ance sector up with Rizal to develop
ate the third- premium gains in in Singapore bancassurance business.
largest nonlife insurance the Indonesian life recorded a 3%
company in Japan. and nonlife markets. growth rate in 2008.
Copyright © 2008 by A.M. Best Company2009 by A.M. Best Company, Inc.
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