Insurance exposures vary in each emerging market!

Insurers expanding into new markets should be aware of the often significant differences between the countries they are moving into and not treat them as generic emerging markets, said Denis Kessler, chairman and CEO of Paris-based SCOR S.E.
Closer examination of the exposures insurers face in emerging markets will reveal the differences between the markets and the level of catastrophe risk they are taking on, which often is greater than insurers may think, he said.
“Emerging markets are not clones,” and each market requires a different strategy and approach, Mr. Kessler said during a panel session Monday at the International Insurance Society Seminar in Rio de Janeiro. Different legal systems, different family sizes, different religious beliefs and different attitudes to risk create specific characteristics for each market, he added.
Insurers can often find it difficult to assess the exposures they face in emerging markets because data is not always available and underwriting models usually cover only developed regions, Mr. Kessler said.

BRIC catastrophe profiles

An overview of the catastrophe exposures of the so-called BRIC countries—Brazil, Russia, India and China—illustrates the difficulty of assessing natural catastrophe exposures.
Brazil traditionally has been viewed as a country with few catastrophe exposures because it has not been exposed to hurricanes and it is not in an earthquake zone, he said. However, in the past several years, flooding in Brazil has led to significant landslides.
In addition, Tropical Storm Catarina made landfall in Brazil in 2004. While Atlantic hurricanes and tropical storms traditionally occurred in the North Atlantic, climate change may lead to hurricane exposures for the South Atlantic, Mr. Kessler said.
Russia also has been viewed as being largely unexposed to catastrophe risks, he said. But in 2010, it experienced a severe heat wave that had far-reaching consequences—an increase in the death rate during the summer and an outbreak of wildfires. The heat wave also led to lower crop yields, which affected countries that rely on Russia’s cereal production.
“The heat wave in Russia led to a heat wave in the streets of Tunisia,” Mr. Kessler said, referring to the so-called Arab Spring protests and revolts that began in Tunisia at the end of 2010, which were sparked in part by bit increases in the price of food.
In India, the catastrophe exposure has long been recognized, with insurers experiencing 21 catastrophes in India since 1999. But as the Indian economy has grown so rapidly in the past several years, insurers need to be aware that the catastrophe exposure is growing at a similar rate, he said.
In China, again, the catastrophe exposure is large, with four Chinese earthquakes since 1900 being among the most deadly on record, Mr. Kessler said. As the Chinese economy grows, so does the catastrophe exposure and the business interruption exposure. “There are 250 industrial parks in China that are like those affected by the Thai floods,” he said.
For insurance growth to be sustainable, insurers need to invest in training and education and carefully analyze the risks they are exposed to as they expand globally, Mr. Kessler said.

FCC Report: Top 5 Causes of 'Accidental' Avian bird deaths in the US!

A change of pace from the usual serious tone.....Not sure who had the time to count these 2.38 Billion 'incidents' but it reeks of a waste of money - no offense to our bird friends.

As reportes in the WSJ.

1. Cats (1Bn), 2. Building, windows ($1Bn), 3. Power lines (130M), 4. Hunting (120M), 5. Pesticides (67M)......

Rest of the Top 10:

6. Automobiles (60M), 7. Communications towers (6.8M), 8. Wind turbines (400,000), 9. Airplanes (25,000), 10. Misc.

Sadly, the Bay-Breasted warbler is considered the 'Super-tower collider - while the Horned lark is considered the least at risk of colliding tragically but superbly into a communications tower.

The FCC suggests deaths could be avoided by turning off steady warning signals on towers.....of course this does not consider the risk to aeroplanes, gliders, parachutists or levetators.

"TeachMe" suit first under cyberfraud initiative.

In a federal lawsuit filed in New Jersey this week, the State Attorney General alleged that the developer of "TeachMe" apps has been collecting personal information about children and selling it without telling users or asking their parents for their consent.

The "TeachMe" apps let children post pictures of themselves and they are some of the most popular educational games of their kind.

Mobile devices typically can capture and transmit a wealth of personal information about users including their identities and even their geographic location.

This personal information is primarily used for subliminal marketing purposes - who hasn't seen an offer from a coffee or retail chain on their phone or email. However, when it comes to children their can be unfortunately a more sinister motive.

Technology companies who create apps - or use them in their operating systems - typically purchase coverages to respond to Mobile or Geolocation claims; All based on privacy and data protection.

Technology Errors & Omissions policies - manuscripted correctly - also can respond to such allegations or claims.