The Netherlands: World's most expensive drug may not be covered by Dutch insurance

A drug to treat a rare muscle disease which affects some 20 children in the Netherlands a year should not be included in the basic insurance package unless the price is halved, government advisory group Zorginstituut Nederland has said in new recommendations.

In addition, pharmaceutical company Novartis should also agree to payment on the basis of the actual results, the institute said. Zolgensma, known as the most expensive drug in the world, is used to treat spinal muscular dystrophy (SMA) and costs €1.9m per treatment. The institute estimates that if the cost were halved, the drug would add some €11m to the Dutch healthcare budget a year.

Read more at: World's most expensive drug may not be covered by Dutch insurance - DutchNews.nl

EU Insurance: Unemployment reinsurance popular in the EU

Read more at:
https://www.socialeurope.eu/unemployment-reinsurance

EU-U.S. (re)insurance deal boost for transatlantic trade — EUbusiness.com | EU news, business and politics

More than 20 years of talks between the EU and the United States ended successfully Friday with a bilateral agreement set to boost transatlantic trade in insurance and re-insurance.

The agreement will apply the same requirements to both EU and U.S. reinsurers when they place business in each other's jurisdictions.

European insurers will welcome in particular the removal of the collateral requirements - if they meet the conditions laid down in the Agreement - which EU reinsurers were subject to when placing business in the US, which were seen as discriminatory.

Eliminating collateral and local presence requirements for EU and U.S. reinsurers will enhance consumer protection, say both parties.

The deal is a win-win solution, set to benefit insurers, reinsurers and policyholders on both sides of the Atlantic, says the EU's Commissioner for financial services Valdis Dombrovskis: "It shows that both EU and US regulators can reach mutually-beneficial outcomes through enhanced international cooperation," he said.

Insurance Europe, the European insurance and reinsurance federation, also welcomed the agreement, saying the recent conclusion "demonstrates the strength of the relationship between the EU and the US", and "will help support bilateral trade in (re)insurance, for the benefit of both consumers and economies. Looking ahead, Insurance Europe hopes to see a swift application of the spirit and provisions of this agreement by all relevant authorities, to ensure a successful outcome.”

The agreement covers prudential benefits which are granted on certain conditions for reinsurers and for reinsurance and insurance groups of the EU operating in the US and conversely, and exchange of information between supervisors on both sides of the Atlantic.

The agreement will make possible increased investment by reinsurers, says the Commission. EU reinsurers estimate that they have about $40 billion of collateral posted in the USA, which could be used more effectively in other investments.

The opportunity cost is estimated at around $400 million per year.

EU and US insurance and reinsurance groups active in both jurisdictions will not be subject to certain requirements with respect to group supervision for their worldwide activities, but supervisors retain the ability to request and obtain information about worldwide activities which could harm policyholders' interests or financial stability.

The agreement also contains model provisions for the exchange of information between supervisors, which supervisors on both sides of the Atlantic are encouraged to follow.

The agreement is being notified to Congress in the USA.

In the EU, it will be submitted to the EU Member States in Council in view of its formal signature. The European Parliament's consent will also be needed for conclusion of the deal.

Read more: EU-U.S. (re)insurance deal boost for transatlantic trade — EUbusiness.com | EU news, business and politics

Italy: Insurance Industry: How Italy's Generali Is Connecting U.S. With Its Global Network - by L.S. Howard

Global Reach & point-of-sale expertise.

The U.S. branch of Generali’s Global Corporate & Commercial business unit has recently  launched a property insurance product for U.S.-based multinational corporations.

GC&C is a relative new kid on the block in insurance terms, having launched quietly three years ago. Since then it has carefully chosen a suite of products and a geographic spread that matches its intention to
provide point-of-sale expertise.

GC&C’s newest product, called TRIBUNE, has a global capacity of up to $250 million and provides comprehensive coverage for U.S. corporations’ domestic and overseas exposures via a “controlled master program,” which leverages the global capabilities of Generali.

TRIBUNE customers will be able to access the global loss control and mitigation services provided by BELFOR Property Restoration, said a statement issued by GC&C.

With the ability to issue admitted policies in 145 countries through its network, Generali provides “the advantages of an established global network, such as cross-border premium transfers, local claims adjusting and claims settlement as well as local servicing capabilities and a very broad international network of loss control engineers,” said Andrew Sims, senior vice president of Property & Construction at GC&C in New York City, during a recent interview.

“In an increasingly interconnected world, when you have multiple insurers handling your insurance, you run the risk of certain risks falling between the cracks,” he said. “One of the reasons a multinational program is so attractive is because it provides global consistency.”

“TRIBUNE was specifically designed to respond to the unique challenges of cross-border risk management for multinational corporations based in the U.S. and to avoid the pitfalls of insurance fragmentation across country lines,” said Sims in a statement issued by GC&C.

A controlled master program provides a centrally administered global program in addition to local policies with local claims adjusters, loss control engineers and servicing. The master policy wraps around “the local coverages and provides a consistent level of global coverage,” Sims explained in the interview, noting that this is especially important for manufacturing companies dealing with complex supply chain exposures.

A controlled master policy is a bit like a speed dial, he continued. “You don’t have to keep a list of 50 different insurers that are insuring your assets.”

If something goes wrong, the customer makes one call to its account executive at Generali in New York, Sims said.

Founded in Trieste, Italy in 1831, Generali has had a branch in the U.S. for more than 50 years. Approximately 1,200 people work in the U.S. under different brands such as European Assistance and Generali Employee Benefits—businesses that generate $1 billion in annual revenue for Generali.

EU-Digest

Car insurance tailored to your usage (UBI)

The ability to bring internet connection to nearly every type of consumer device will have huge implications for the insurance industry over the next five years. Insurers looking to cut costs, improve business practices, and better assess clients' risk levels, will increasingly invest in the Internet of Things (IoT).

Some auto and health insurers are already offering a new type of insurance — usage-based insurance (UBI) that uses IoT devices to track clients' activity and offer discounts or rewards for healthy and safe behavior. We expect 17 million people will have tried UBI auto insurance by the end of this year.

The usage based insurance market more closely aligns driving behaviors with premium rates for auto insurance. The UBI program mainly includes On-Board Diagnostics (OBD) to monitor the driving habits, pay as you drive (PAYD), and pay how you drive (PHYD).

At present, usage based insurance market has been popularized in Europe and the United States, where the insurers like Allianz, Insure The Box, Progressive, Allstate, and Desjardins Insurance have developed UBI business and made some profits. Meanwhile, the telematics providers in different countries including Baseline Telematics, Masternaut, MyDrive Solutions Limited, Octo Telematics, and TomTom Telematics have continuously optimized OBD devices to assist insurers with accurate usage based insurance market pricing.

Insure-Digest

Insurance Comparison Tool: Google unveils car insurance comparison tool to help you save some money - by Jimmy Westenberg

Google has just introduced a new tool to help you save some money the next time you buy auto insurance. It’s called Google Compare for car insurance, and will display both national and local insurance providers in order to get you the best deal. There are only 14 partners on-board with the comparison tool so far, but the company hopes to add many more in the near future.

Read more: Google unveils car insurance comparison tool to help you save some money | AndroidAuthority

The Netherlands: Reinsurance Group Arm to Grow Life Insurance in Netherlands

Leidsche Levensverzekeringen Maatschappij N.V., the Netherlands-based life insurance subsidiary of Reinsurance Group of America, Incorporated (RGA - Analyst Report) has agreed to purchase the life insurance policy portfolio of PGGM Levensverzekeringen. However, the terms remain undisclosed.

also based in the Netherlands, provides asset management, pension fund management and consultancy services to its institutional clients. Per the closed-block transaction, PGGM will transfer 75,500 life insurance policies to Reinsurance Group.

With the acquisition, the company’s portfolio run-off solutions will find a market in Europe. Plus, Reinsurance Group will benefit from the ‘realignment of the financial services industry’.

Reinsurance Group remains focused on strategic buyouts that strengthen its operations. Recently, the Zacks Rank #3 (Hold) insurer acquired Elite Sales Processing, Inc. in an attempt to bolster its underwriting business in the U.S. In April, the company bought Aurora National Life Assurance Company. Reinsurance Group’s strong liquidity supports its inorganic growth initiatives.

Reinsurance Group holds a niche position in the U.S. and Canada reinsurance markets. Moreover, the company is expanding its international operations to reap the benefits of diversification. It is poised to benefit from the changing life reinsurance pricing environment. Its expanding business in the pension risk transfer market also looks promising.

PGGM, also based in the Netherlands, provides asset management, pension fund management and consultancy services to its institutional clients. Per the closed-block transaction, PGGM will transfer 75,500 life insurance policies to Reinsurance Group.

With the acquisition, the company’s portfolio run-off solutions will find a market in Europe. Plus, Reinsurance Group will benefit from the ‘realignment of the financial services industry’.

Reinsurance Group remains focused on strategic buyouts that strengthen its operations. Recently, the Zacks Rank #3 (Hold) insurer acquired Elite Sales Processing, Inc. in an attempt to bolster its underwriting business in the U.S. In April, the company bought Aurora National Life Assurance Company. Reinsurance Group’s strong liquidity supports its inorganic growth initiatives.

Reinsurance Group holds a niche position in the U.S. and Canada reinsurance markets. Moreover, the company is expanding its international operations to reap the benefits of diversification. It is poised to benefit from the changing life reinsurance pricing environment. Its expanding business in the pension risk t - See more at: http://www.zacks.com/stock/news/187335/reinsurance-group-arm-to-grow-life-insurance-in-netherlands#sthash.vk5S7FYZ.dpuf

Leidsche Levensverzekeringen Maatschappij N.V., the Netherlands-based life insurance subsidiary of Reinsurance Group of America, Incorporated (RGA - Analyst Report) has agreed to purchase the life insurance policy portfolio of PGGM Levensverzekeringen. However, the terms remain undisclosed. - See more at: http://www.zacks.com/stock/news/187335/reinsurance-group-arm-to-grow-life-insurance-in-netherlands#sthash.vk5S7FYZ.dpuf

Read more: Reinsurance Group Arm to Grow Life Insurance in Netherlands - August 21, 2015 - Zacks.com

The Netherlands: How to be well insured in the Netherlands

Being insured in the Netherlands is seen as common sense. We want to be well insured against a wide variety of situations. Suppose a faulty washing machine floods our apartment (or that of our downstairs neighbours).

What if we accidently spill coffee over a tablet, either our own or somebody else’s? What if our child scratches the neighbours’ car? Maybe our home gets burgled or we hit someone with our car or bicycle. The Dutch know accidents do happen and we want to avoid unpleasant surprises.

Our advice to new arrivals is: ‘Do it like the Dutch’. Then you can rest easy, because we are one of the best insured nations in the world. Eight types of insurance in the Netherlands The average Dutch person has eight different insurance policies. That sounds a lot, but insurance is relatively cheap in the Netherlands and is compulsory in some instances. For example, everybody must have health insurance.

And homeowners must have buildings insurance and car owners need car insurance. In addition, liability insurance and home contents insurance are considered essential and are not expensive. Good liability insurance, for example, costs only a few euros a month. And full home contents insurance is around €10 a month.

Read more: How to be well insured in the Netherlands: in English - DutchNews.nl

Institutional Investments: How Pension Plans Can Adapt to a New Normal of Low Returns - by Tony Gould

After years of near-zero policy rates, institutional investors are still waiting for a return to a normalized level of long-term interest rates. Whereas many pensions have embraced liability-driven investing in recent years, asset-liability mismatches remain. A rise in long-term bond yields would allow pension investors to close duration gaps athigher levels of funding.

But what if it turns out that we’re in an environment of lower yield and lower returns for longer
than we expected? What if the slow rates of real and nominal growth we have experienced since the 2008–’09 financial crisis are reflective of long-term secular trends?

Let’s consider three underlying reasons why we may be facing lower long-term growth across asset classes.

We believe lower productivity could limit GDP growth and keep rates low. The most reliable long-term driver of GDP growth is productivity growth. Since World War II, productivity has been slowing across the developed world. There are few signs today that a new wave of expansion is imminent. The source of productivity and the factors that influence it are complex questions for economists to debate.

Demographic trends could also constrain rates. An aging population and the subsequent dwindling in the labor force put a speed limit on nominal growth numbers. That implies lower nominal and real interest rates
ahead.

Structural adjustments in Europe, China and Japan will mean slower global growth. U.S. long bond yields are clearly impacted by developments in the rest of the world. Although the European Central Bank has implemented quantitative easing to buy time for Europe to sort out its economic problems, it is hard to make the case for a sustained renaissance in growth on the Continent. In fact,

Europe still faces the prospect of several more years of adjustment to low growth as high unemployment and stagnant wages and then before competitiveness in these countries can be restored. Meanwhile, we believe that China is in the midst of a heavily managed but inexorable decline in structural growth rates to a likely range of 5 to 6 percent on a consistent basis. Japan’s aggressive program of quantitative easing is also helping to depress bond yields globally. Ongoing declines in that country’s labor force suggest that low rates of growth, accompanied by low bond yields, will persist for the foreseeable future.

A lower baseline for risk-free rates in turn implies lower long-term capital markets returns. Low asset return expectations come at a challenging time for institutional investors. Many pension plans are facing recent
or upcoming hits to funded status as they incorporate updated mortality assumptions. As a result, many corporate plans have fallen down — rather than up — their glide paths and are debating whether to derisk at even lower yields or to rerisk and await higher rates. State and local government budgets are increasingly strained by rising pension contributions. In a low-return world, public pension plans will either need to reduce their return assumptions, requiring further contribution ncreases, or reconsider their investment policy.

Read more: How Pension Plans Can Adapt to a New Normal of Low Returns | Institutional Investor