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Axco
THE IMPORTANCE OF COMPLIANCE ABROAD
JANUARY 29TH, 2014
ERV, STOCKHOLM
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ABOUT AXCO
About Axco
 With over 40 year’s experience in researching and delivering industry intelligence, Axco provides
business-critical compliance and market data on non-life, life & benefits and employee benefits markets
across the globe.
 Axco information is relied upon by a diverse range of organisations and our client base includes the
world’s foremost insurers, reinsurers, brokers, and employee benefits professionals.
 Our unique business model and methods of research have enabled us to develop an extensive suite of
products comprising in-depth reports, profiles, Q&A databases and information platforms.
© Axco Insurance Information Services 2014
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THE AXCO BUSINESS MODEL
The Axco business model
 Axco operates under a mutualised outsourcing model
 We look to build long term partnerships with both our clients and information and data sources
 We undertake to understand our client’s individual requirements
 We prioritise frequent interaction with our clients
 We are committed to developing new and innovative methods of information delivery.
© Axco Insurance Information Services 2014
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HOW IS AXCO INFORMATION RESEARCHED
Local Offices
Partners
Specialist
Compliance
Research Team
Interviews,
Correspondence
Copy of
Axco report
Axco Database
Central Global Industry
Repository
Other Brokers & Insurers
Interviews,
Correspondence
Regulators
Copy of Axco report
In-house research
Associations
Global Users Feedback
© Axco Insurance Information Services 2014
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INTERNATIONAL INSURANCE REQUIREMENTS
The challenges of international insurance
 International companies, international operations = International risks
196 countries in the world = Hundreds of jurisdictions, cultures, insurance practices
 Spectrum of insurance market development: Emerging/low expertise to Developed/well-funded
 Aims of regulations: laws designed to protect consumers of insurance and financial systems not
international companies
 Accepting grey answers: Complexity (of the world), Ambiguity/Uncertainty (of insurance regulations)
© Axco Insurance Information Services 2014
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COMPLIANCE ABROAD CHECKLIST
‘Compliance Abroad’ checklist
 Market environment
 Insurance regulations and supervisory authority
 Is non admitted permitted?
 Local coverage requirements
 Compulsory insurances
 Taxes and charges
 Local underwriting expertise and capacity
© Axco Insurance Information Services 2014
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Market Environment
Market environment
Ghana:
25.31 Million
51.9% Urban
Resources
Exports
Events
Natural
Resources
Brazil:
198.66 Million
84% Urban
© Axco Insurance Information Services 2014
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Market Environment
Market environment
Ghana
700
60000
600
50000
500
40000
400
30000
300
20000
200
10000
100
0
GDP (mn)
Written Premiums (mn)
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Brazil
10000000
100000
9000000
90000
8000000
80000
7000000
70000
6000000
60000
5000000
50000
4000000
40000
3000000
30000
2000000
20000
1000000
10000
0
0
1994
1996
1998
2000
2002
2004
2006
2008
2010
© Axco Insurance Information Services 2014
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Written Premiums (mn)
1988
GDP (mn)
Written Premium (mn)
GDP (mn)
70000
GDP (mn)
Written Premiums
(mn)
08
Market Environment
Specific insurance regulations and supervisory authority
Ghana
Insurance Law
1989
Supplemented by
Insurance
Regulations 1990
Insurance Act
2006
 Proposed legislation can take years to reach Parliament
Brazil
CNSP
Resolution
no. 162 – 26
December
2006
CNSP
Resolution
no. 181 – 17
December
2007
CNSP
Resolution
no. 195 – 16
December
2008
 Four resolutions to just set out the basis of premium and loss reserves
 Rapidly developing insurance and reinsurance market
 Supervisors and Regulators want to protect local companies
© Axco Insurance Information Services 2014
CNSP
Resolution
no. 204 –
28 May
2009
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Insurance Options
On what basis can I write Insurance?
Four main ways to write international business
 Admitted – Policy is issued locally from a locally registered and based company
 Cross Border Agreements – e.g. Freedom of Services
 Fronting – Local office used and reinsured out
 Non Admitted – Unauthorised Insurer
© Axco Insurance Information Services 2014
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What is Non Admitted?
What is meant by non admitted?
Definition. Non-admitted insurance refers to the placing of insurance outside the regulatory system of the
country in which the risk is located. A non-admitted insurance policy is one that may be issued abroad or
the risk(s) may be included in a global master policy by an insurer unauthorised in that country. An
authorised insurer is one which is permitted to do business in a country (or region) by the local supervisory
authority.
© Axco Insurance Information Services 2014
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International Insurance Programme
© Axco Insurance Information Services 2014
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International Insurance Programme
Admitted
 Locally Licensed and
Regulated
© Axco Insurance Information Services 2014
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International Insurance Programme
FOS
 International Agreements
 As if Locally Licensed
 Taxes and Charges
© Axco Insurance Information Services 2014
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International Insurance Programme
Locally Licensed
Office
 High Level of compliance
confidence
 Local Broker
 Policy Wording
 Policy Issue
 Premium Payment and
Terms
 Local Capacity
© Axco Insurance Information Services 2014
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International Insurance Programme




Insured’s Initiative
Exempt lines of business
Compulsory Insurances
Taxes and Charges
 Claims management
© Axco Insurance Information Services 2014
Non Admitted is
Permitted
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International Insurance Programme
Non
Fronting
Admitted
Partner
NOT
permitted




Abide by all local regulations
Long term partnership
Local knowledge
Not ideal for one time
placements
 Exposed to Reinsurance taxes
 Expensive
© Axco Insurance Information Services 2014
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International Insurance Programme
Central Cover
DIC/DIL, Financial Interest
Clause, Master Policy




Non Admitted
NOT
permitted
Penalties
Prison
Reputational Damage
Claims payments
© Axco Insurance Information Services 2014
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International Insurance Programme
© Axco Insurance Information Services 2014
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International Insurance Programme
Admitted
FOS
Locally Licensed
Office
Central Cover
DIC/DIL, Financial Interest
Clause, Master Policy
Non Admitted
NOT
permitted
Fronting
Partner
© Axco Insurance Information Services 2014
Non Admitted is
Permitted
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How can Axco help?
HOW CAN AXCO HELP?
 Critical to have knowledge in order to continue writing compliant programmes
 Axco’s remit is to provide information
 On the ground research: Axco visits 170 + countries
 Avoiding information overload: ‘Less is More’ product development = right information for the
right person at the right time
 Integration of information sources and product design: portals, annotations, click-throughs
 Combine that information with your expertise
 KNOWLEDGE
 Who to talk to
 What questions should you be asking
 What pitfalls should you be looking out for
 Never a straight forward black and white area
© Axco Insurance Information Services 2014
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AXCO PRODUCTS
Insurance Market Reports
Comprehensive country by country insurance market
information
Non-Life (Property & Casualty) and Life & Benefits.
Employee Benefits Reports
Comprehensive coverage of worldwide
employee benefits markets.
Regulatory Alerts
Monthly e-mail alerts reporting on key
developments in regulation, legislation and
premium taxation.
Global Statistics
Current and historical statistics covering non-life and life
& benefits markets in over 180 territories worldwide.
Clinical Trials
Clinical trials insurance information for over 170
territories, including market and compliance data.
Compliance Point
A single “go to place” combining regulatory and
tax compliance information.
Insight
Using Q&A structure, Axco Insight provides a
customisable overview of global insurance markets.
CIMS Market Profiles
Focused information on key aspects of the market and
compliance requirements in over
170 territories.
Country Benefits Profiles
Concise information on state and compulsory
benefits and typical employer practice in 69
countries.
© Axco Insurance Information Services 2014
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NON-LIFE INSURANCE MARKET REPORTS (IMR)
Non-Life Insurance Market Reports
Non-life insurance market information for over 170 countries
 Essential legislative, insurance regulatory and tax
compliance information
 Insurance market overview, distribution channels, market
size, structure and key players
 All major lines of non-life business
 Comprehensive appendices containing market statistics,
company statistics, and directory of key market contacts
 Create customised reports to facilitate client
presentations and business tendering
© Axco Insurance Information Services 2014
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INSIGHT COMPLIANCE
Insight Compliance
Delivering global non-life (P&C) insurance regulations and
taxes at a glance
 Single point of reference for non-life insurance
regulatory and tax compliance requirements
 Question & Answer structure, with topics compiled from
clients' most frequently asked compliance questions
 Line of business-specific regulation for over 170
territories
 Customise and filter data according to territory, line of
business and regulatory topic
© Axco Insurance Information Services 2014
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AXCO COMPLIANCE POINT
Compliance Point
Interactive compliance tool guiding users through multinational insurance programmes calculating all taxes
and charges that are applicable.
 A single “go to place” combining regulatory
and tax compliance information.
 Market solution tailored to user group
needs
 Intelligent questioning prompts users for
the exact information needed as they
progress through the system.
 Up to date, transparent and unbiased
information from multiple sources.
 Auditable trail of decisions and results
© Axco Insurance Information Services 2014
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For further information about Axco or for product demonstrations
please come and find us afterwards.
Thank you
Teams of London-based in-house research analysts,
editors and statisticians ensure that information is
maintained and updated to the highest standards.
We welcome client enquiries and feedback which
are integral to the continued development and
enhancement of our products.
Carol Au-Young
Ali Mufti
Axco Insurance Information Services
10 Old Broad Street
London
UK
EC2N 1DW
Tel: +44 20 7374 5252
Fax: +44 20 7374 5277
Email: axco@axcoinfo.com
www.axcoinfo.com