Worlds of chances and challenges. (Editor's Prologue).In the search for new markets and potential policyholders, insurers are finding that Asia looks very good. China is particularly attractive, with its population of about 1.3 billion and insurance premiums that were only 2.2% of its gross domestic product in 2001. Breaking into that market, however, can be a big step, so some insurers are going into Australia and New Zealand first New Zealand First is a political party in New Zealand. Commentators dispute the appropriate classification of the party on the traditional political spectrum, but New Zealanders might arguably associate it with advocacy of senior citizens' benefits, opposition to open-door . "Australia's biggest trade partners are China and Japan. You find a lot of knowledge of Asian markets in Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ," said Selina Man, A.M. Best Co.'s Australia/New Zealand regional manager. The catch is that those markets have their own challenges and opportunities. Our cover story, "Rites of Passage," (page 18) describes considerations for insurers moving into and pulling out of Australia and New Zealand. Entry, for example, is virtually without barriers, but the markets are relatively small and crowded. Australia's insurance regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , the Australian Prudential Regulation Authority The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. Regulatory scope APRA oversees banks, credit unions, building societies, friendly societies, general insurance and reinsurance companies, life , is working to tighten standards, but some say legal reform is needed to deal with the litigious litigious adj. referring to a person who constantly brings or prolongs legal actions, particularly when the legal maneuvers are unnecessary or unfounded. Such persons often enjoy legal battles, controversy, the courtroom, the spotlight, use the courts to punish environment there. The prize for insurers may be worth the effort. "Going for the Gold" (page 24) describes the potential rewards--and difficulties--of doing business in China. The ultimate achievement will be success in Asia and in the markets along the way. Back in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the litigious environment--and high awards for noneconomic damages in medical-liability cases--are causing problems for insurers and the health-care professionals they cover. "Line Drive" (page 36) details predictions that medical-liability reform proposals will be hot issues for Congress and state legislatures again this year. And in the ever-expanding world of cyberspace, insurers face new threats to their security every day. In "Securing the System" (page 80), insurers talk about how they're fighting to protect their computer systems and their data. Sally Whitney is editor. You may reach her at (908) 439-2200, Ext. 5340, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at sally.whitney@ambest.com . The e-mail address See Internet address. e-mail address - electronic mail address for Best's Review is bestreview@ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion