Global Risk Alerts

Country: Hong Kong
Date Issued: April 17, 2019
Subject: Global Risk Alert – Poland

Note: Employees’ Compensation Insurance(Hong Kong’s version of Workers Compensation) is an important placement in the private insurance market. Recently, the Hong Kong Insurance Authority introduced a protocol, “Improved Practice on ECI”, to provide for more consistency in the disclosure of exposure information.

Country: Poland
Date Issued: October 4, 2018
Subject: Global Risk Alert – Poland

Note: On October 4, 2018, the Sejm (the first House of Parliament of Poland) passed the Act on Employee Capital Plans (PPK). The new regulation requires establishment of a pension savings system based on employee and employer contributions to increase pensions savings for employees post age 60. The scheme assumes engagement of employers, employees and the State and will result in an additional expense for employers.

Country: Vietnam
Date Issued: June 22, 2018
Subject: Global Risk Alert - Vietnam

Note: Effective April 15, 2018, the Vietnam Government issued Decree No. 23, which updates regulations on compulsory fire and explosion insurance products.

Country: Spain
Date Issued: May 24, 2018
Subject: Global Risk Alert – Spain

Note: In a resolution dated March 28, 2018 the DIRECCIÓN GENERAL DE SEGUROS Y FONDOS DE PENSIONES approved new rates for contributions due to the Consorcio de Compensación de Seguros , reducing many of the charges.

Country: USA
Date Issued: March 26, 2018
Subject: Global Risk Alert – USA

Note: The US Tax Cuts & Jobs Act, which became law on January 1, 2018, contained a number of provisions which may affect multinational firms. One such provision is the Base Erosion and Anti-Abuse Tax, or BEAT.

Country: Brazil
Date Issued: March 16, 2018
Subject: Global Risk Alert - Brazil

Note: Brazil’s National Council for Private Insurances – CNSP– issued CNSP Resolution 353, which impacts cessions of reinsurance from Brazil to reinsurers abroad. Resolution 353 eliminates limitations on intercompany cessions and mandatory minimum local market reinsurance placements.

Country: South Africa
Date Issued: March 16, 2018
Subject: Global Risk Alert – South Africa

Note: The Insurance Act has been in development for over 5 years and will provide the framework for supervision of the insurance industry in South Africa in line with international standards.

Country: Spain
Date Issued: February 8, 2018
Subject: Global Risk Alert – Spain

Note: All companies in Spain are strictly liable for damage to the Environment. Ministerial Order APM/1040/2017 dated 23 October 2017 established dates by which companies engaged in certain activities posing a high-risk to the environment, must obtain a financial guarantee (such as an insurance policy).

Country: China
Date Issued: January 25, 2018
Subject: Global Risk Alert – China

Note: China’s Ministry of Environmental Protection (MEP) and insurance regulator CIRC have jointly released draft guidelines on environmental pollution liability insurance (the “Draft Guideline”) for public comments – the latest one in October 2017.

Country: Taiwan
Date Issued: November 21, 2017
Subject: Global Risk Alert – Taiwan

Note: The Taiwanese insurance regulatory body, the Financial Supervisory Commission, has been active in implementing guidelines for premium calculations on Property and Liability policies. The expectation is that reference rates for 2018 will increase over 2017.

Country: New Zealand
Date Issued: May 17, 2017
Subject: Global Risk Alert - New Zealand

Note: As of July 1, 2017 the New Zealand Fire Service Commission and rural fire authorities will be amalgamated into a new organization - Fire and Emergency New Zealand (FENZ). Following this the levies assessed on Property, Motor or any other policies that insure fire risk will increase.

Country: India
Date Issued: May 17, 2017
Subject: Global Risk Alert - India

Note: Last May India announced new regulations related to foreign reinsurers and reinsurance cession. Now those regulations are coming into effect as foreign reinsurers have received licenses to operate.

Country: Germany
Date Issued: April 3, 2017
Subject: Global Risk Alert - Germany

Note: In January 2017, German authorities made a number of amendments to the German Environmental Law concerning waste management and chemical/hazardous substances that include the introduction of a new compulsory insurance requirement for certified waste management companies.

Country: Russia
Date Issued: October 5, 2016
Subject: Global Risk Alert - Russia

Note: Amendments to the Law on Organization of the Insurance Industry Federal were approved by the Russian Duma on June 21, 2016 and signed by the Russian President on July 3, 2016 to create the National Reinsurance Company (NRC) and to impose obligations on local insurers to cede 10% of certain risks to the NRC.

Country: South Korea
Date Issued: July 20, 2016
Subject: Global Risk Alert- South Korea

Note: Under the new Environmental Pollution Damage Compensation and Recovery Act, facility operators will be strictly liable for any damages stemming from environmental pollution that occurred during the installation or operation of their facilities effective July 1st, 2016. According to the Damage Relief Act, approximately 9,000 local business facilities/sites that emit pollution will now be required by law to purchase compulsory environmental liability coverage.

Country: Saudi Arabia
Date Issued: July 19, 2016
Subject: Global Risk Alert- Saudi Arabia

Note: New instructions issued by the Saudi Arabian Monetary Agency (SAMA) in January 2016 are having a significant effect on both local domestic companies and local subsidiaries of offshore parents with property risks in Saudi Arabia.

Country: Papua New Guinea
Date Issued: June 28, 2016
Subject: Global Risk Alert- Papua New Guinea

Note: Existing laws related to non-life insurance in Papua New Guinea (PNG) require the placement of insurance for risks domiciled in PNG to be placed on an admitted basis with locally licensed insurers.

Country: Venezuela
Date Issued: March 17, 2016
Subject: Global Risk Alert- Venezuela Currency Devaluation

Note: In a new wave of economic measures announced by the government on February 15, 2016, Bolivares Fuertes have now been devalued. This will have a significant effect on local insurance policies issued for risks located in Venezuela. These economic measures went into effect March 8, 2016.

Country: India
Date Issued: March 4, 2016
Subject: Global Risk Alert- Increase in National Catastrophe Rates - India

Note: After the devastating floods in Jammu and Kashmir as well as Cyclone Hudhud, local Indian authorities are increasing the government-rated tariff insurance premium rates for Storm, Flood and Inundation perils (STFI) effective March 1, 2016.

Country: United Kingdom
Date Issued: February 29, 2016
Subject: Preparing for August 12, 2016 changes to UK Insurance Act - United Kingdom

The Insurance Act 2015 (the "Act") has now been passed in the United Kingdom and will have a significant effect on all clients with commercial contracts/policies (insurance or reinsurance) issued where the governing law within the policy is stated to be England, Wales, Scotland and Northern Ireland..

Country: Belgium
Date Issued: January 12, 2016
Subject: Global Risk Alert - Workers Comp IPT Reduction – Belgium

Note: As of January 1st, 2016 the Insurance Premium Tax (IPT) applied to Workers Compensation (WC) policies in Belgium will decrease from 4.13% to 3.75%.