Health Insurance Exchange Subsidy Programs
Life insurance distribution in Asia has long been dominated by the tied-agent model. While we are convinced that this will remain an important channel for the future, we have already seen bancassurance capturing shares of up to 50 percent in some markets. Furthermore, we will continue to see alternative and broker channels grow faster than the market - although from a still very small base.
Revamping The Agency Force
Asian insurers have typically built up large "tied" agency sales forces that rely heavily on relationship-based selling. These agents are often managed in a multilevel marketing, or pyramid, sales-force model. At the bottom of the pyramid are the new agents who have just entered the sales force.
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Alliance Life Insurance Malaysia - The Rise of the Multinational Insurers in Asia
Alliance Life Insurance Malaysia
Multinational insurance companies (MNCs) are not new in Asia. The best known example is AIG, which has its roots in Shanghai, and a large presence across most of the region. However, the recent bailout of AIG by the US government in late 2008 will likely change the ending of this story. Apart from AIG and a few other large MNCs that have a true pan-Asia business, most MNCs have a much smaller footprint across Asia, and are mostly active in the financial centers of Hong Kong and Singapore.
In the last decade though, we have seen a strong rise in the foreign presence in Asian insurance markets. Across all markets, foreign players have increased their market share substantially, often at the expense of local incumbents. Several changes in the marketplace fostered this growth of foreign participation in Asia markets: deregulation, economic conditions conducive for entry, and superior capabilities which allow foreign insurers to grow once they have arrived in the market.
Multinational insurance companies (MNCs) are not new in Asia. The best known example is AIG, which has its roots in Shanghai, and a large presence across most of the region. However, the recent bailout of AIG by the US government in late 2008 will likely change the ending of this story. Apart from AIG and a few other large MNCs that have a true pan-Asia business, most MNCs have a much smaller footprint across Asia, and are mostly active in the financial centers of Hong Kong and Singapore.
In the last decade though, we have seen a strong rise in the foreign presence in Asian insurance markets. Across all markets, foreign players have increased their market share substantially, often at the expense of local incumbents. Several changes in the marketplace fostered this growth of foreign participation in Asia markets: deregulation, economic conditions conducive for entry, and superior capabilities which allow foreign insurers to grow once they have arrived in the market.
Nippon Life Insurance Company Japan - The Emerging Middle Class
Nippon Life Insurance Company Japan
The second trend across Asia is the rapidly changing complexion of life insurance customers. This is a trend that is more prevalent in the nascent markets of China, India, Indonesia, and Vietnam, and describes the expansion of the insurance market into previously untapped territory. The numbers are staggering: There are 110 million households earning US$10,000 per annum in the 12 countries we studied; by 2012 there will be over 200 million. In the US there were 107 million households with the same income level in 2007 and is expected to increase to 113 million in 2012 the same year, there will be slightly more than 110 million US households with that same income level. This translates to an influx of approximately 200 million new customers into the Asian market over the next five years.
Where do these new customers come from? As Asian countries become wealthier at their breakneck pace of growth, a large middle class is emerging in many of these markets. In China, for example, where 99 percent of urban households were considered "poor" in 1985, by 2005, 22 percent of urban households were considered "middle class," and it is projected that by 2025, about 80 percent of urban households will be in that category. In absolute terms, that means an additional 250 million middle-class households in China! Similarly, in India, the middle class currently only constitutes 5 percent of the population but is expected to be more than 40 percent of the population by 2025.
The second trend across Asia is the rapidly changing complexion of life insurance customers. This is a trend that is more prevalent in the nascent markets of China, India, Indonesia, and Vietnam, and describes the expansion of the insurance market into previously untapped territory. The numbers are staggering: There are 110 million households earning US$10,000 per annum in the 12 countries we studied; by 2012 there will be over 200 million. In the US there were 107 million households with the same income level in 2007 and is expected to increase to 113 million in 2012 the same year, there will be slightly more than 110 million US households with that same income level. This translates to an influx of approximately 200 million new customers into the Asian market over the next five years.
Where do these new customers come from? As Asian countries become wealthier at their breakneck pace of growth, a large middle class is emerging in many of these markets. In China, for example, where 99 percent of urban households were considered "poor" in 1985, by 2005, 22 percent of urban households were considered "middle class," and it is projected that by 2025, about 80 percent of urban households will be in that category. In absolute terms, that means an additional 250 million middle-class households in China! Similarly, in India, the middle class currently only constitutes 5 percent of the population but is expected to be more than 40 percent of the population by 2025.
Average Whole Life Insurance Rates By Age - Emerging Insurance Themes In Asia
Average Whole Life Insurance Rates By Age
Joining an insurance company in the 1960s in Hong Kong was not an obvious choice. In fact, the industry was poorly understood, and only a few multinationals were active in the market at the time. Insurance agents had a difficult time explaining to customers what the product was about, and many viewed such agents with suspicion.
It was in such an environment that Dominic Leung joined AIA (a subsidiary of MG) as an IT analyst. He remembered that "AIA was essentially run by locals - besides a few expats from the US, most of the management team consisted of Hong Kong executives." Over the years, the industry blossomed as life insurance became one of the first financial products that most middle-class people purchased. As AIG expanded its presence across Asia, Dominic moved to Taiwan in 1989 to become the country head. There, MG was known by its Chinese name, Nanshan (a company AIA acquired some years before).
Joining an insurance company in the 1960s in Hong Kong was not an obvious choice. In fact, the industry was poorly understood, and only a few multinationals were active in the market at the time. Insurance agents had a difficult time explaining to customers what the product was about, and many viewed such agents with suspicion.
It was in such an environment that Dominic Leung joined AIA (a subsidiary of MG) as an IT analyst. He remembered that "AIA was essentially run by locals - besides a few expats from the US, most of the management team consisted of Hong Kong executives." Over the years, the industry blossomed as life insurance became one of the first financial products that most middle-class people purchased. As AIG expanded its presence across Asia, Dominic moved to Taiwan in 1989 to become the country head. There, MG was known by its Chinese name, Nanshan (a company AIA acquired some years before).
Personal Injury Insurance Definition - Personal Injury
Personal Injury Insurance Definition
PERSONAL INJURY
This is a good time to discuss the personal injury coverage that is included in some homeowners policies, or that is an optional coverage to be added by an endorsement to others (such at the ISO HO 3 policy). As noted, while there are some variations from insurer to insurer, personal injury liability coverage extends to five basic categories of acts or conduct. These include:
PERSONAL INJURY
This is a good time to discuss the personal injury coverage that is included in some homeowners policies, or that is an optional coverage to be added by an endorsement to others (such at the ISO HO 3 policy). As noted, while there are some variations from insurer to insurer, personal injury liability coverage extends to five basic categories of acts or conduct. These include:
- false arrest, detention, or imprisonment:
- libel, slander, defamation, or product disparagement;
- malicious prosecution (which may include abuse of process);
- wrongful eviction, wrongful entry, or violation of right of private occupancy; and,
- invasion of or violation of right of privacy.
Insurance Liability Waiver - Liability Coverages
Insurance Liability Waiver
Liability Coverages
The overall intent of the liability coverages of homeowners policies is to insure for liability to third parties arising out of the ownership, use, and occupancy of insured premises. The liability coverages of homeowners policies are not general liability coverages. Other liability exposures generally need to be insured separately. This can include the liability arising from business pursuits or from ownership and use of automobiles, watercraft, aircraft, and other vehicles (motorcycles, all terrain vehicles, snowmobiles, etc,).
The physical organization of the liability coverages of homeowners policies is essentially the same as that of the property coverages. The policy's declarations will specify the liability policy limits. If the policy's definition appear at the beginning, rather than at the end of the policy, they follow the declarations and contain the definitions of terms pertinent to the liability coverages.
Liability Coverages
The overall intent of the liability coverages of homeowners policies is to insure for liability to third parties arising out of the ownership, use, and occupancy of insured premises. The liability coverages of homeowners policies are not general liability coverages. Other liability exposures generally need to be insured separately. This can include the liability arising from business pursuits or from ownership and use of automobiles, watercraft, aircraft, and other vehicles (motorcycles, all terrain vehicles, snowmobiles, etc,).
The physical organization of the liability coverages of homeowners policies is essentially the same as that of the property coverages. The policy's declarations will specify the liability policy limits. If the policy's definition appear at the beginning, rather than at the end of the policy, they follow the declarations and contain the definitions of terms pertinent to the liability coverages.
Homeowners Insurance Agencies Milton FL - Loss Payment
Homeowners Insurance Agencies Milton FL
LOSS PAYMENT
This condition addresses several issues, including to whom and when a claim payment will be made. This condition provides that payment will be made to the named insured unless some other person is named in the policy (e,g., your spouse) or is legally entitled to receive payment (e.g, your mortgage lender).
This condition further provides that loss payment will be made sixty days after the insurer's receipt of proof of loss and:
LOSS PAYMENT
This condition addresses several issues, including to whom and when a claim payment will be made. This condition provides that payment will be made to the named insured unless some other person is named in the policy (e,g., your spouse) or is legally entitled to receive payment (e.g, your mortgage lender).
This condition further provides that loss payment will be made sixty days after the insurer's receipt of proof of loss and:
- the insured and the insurer agree to the amount of loss;
- there is an entry of a final judgment in the lawsuit; or
- there is the filing of an appraisal award with the insurer.
Affordable Insurance Company Texas - Loss To A Pair Or Set
Affordable Insurance Company Texas
This condition gives the insurer two alternatives in the event of a loss to a pair or set of personal property items. The insurer may:
Appraisal can be invoked to determine the amount of loss. Such disputes might involve the valuation of items of damaged or destroyed personal property or involve the dispute over what constitutes like or equivalent construction.
This condition gives the insurer two alternatives in the event of a loss to a pair or set of personal property items. The insurer may:
- repair or replace any part to replace the pair or set to its preloss value or
- pay the difference between the actual cash value of the property before and after the loss.
Appraisal can be invoked to determine the amount of loss. Such disputes might involve the valuation of items of damaged or destroyed personal property or involve the dispute over what constitutes like or equivalent construction.
Homeowners Insurance Agencies San Antonio - Levels Of Insurance Coverage
Homeowners Insurance Agencies San Antonio
First, there is actual cash value coverage (i.e., coverage for the fair market value of the dwelling at the time of loss, up to the policy limit). This can be stated ultimately as the cost of replacing or repairing the damaged or destroyed dwelling with like or equivalent .construction, up to the policy limit.
Second, there is building code upgrade coverage. This covers the additional costs, up to stated limits, to repair or replace a damaged or destroyed dwelling to conform to current building codes as of the time, of loss or rebuilding.
First, there is actual cash value coverage (i.e., coverage for the fair market value of the dwelling at the time of loss, up to the policy limit). This can be stated ultimately as the cost of replacing or repairing the damaged or destroyed dwelling with like or equivalent .construction, up to the policy limit.
Second, there is building code upgrade coverage. This covers the additional costs, up to stated limits, to repair or replace a damaged or destroyed dwelling to conform to current building codes as of the time, of loss or rebuilding.
Homeowners Insurance Agencies Florida - Loss Settlement
Homeowners Insurance Agencies Florida
The loss settlement conditions of the property coverages of homeowners policies comprise an area where the policies of various insurers are likely to substantially differ. Thus, a somewhat more generic discussion is appropriate. The issues that arise under the loss settlement conditions involve the collision of and interaction between a number of concepts and policy provisions, including:
The loss settlement conditions of the property coverages of homeowners policies comprise an area where the policies of various insurers are likely to substantially differ. Thus, a somewhat more generic discussion is appropriate. The issues that arise under the loss settlement conditions involve the collision of and interaction between a number of concepts and policy provisions, including:
- policy limits;
- the concept of insurance-to-value and the effect of your failure to maintain sufficient insurance-to-value;
- the concept of actual cash value;
- the different forms of replacement costs coverage;
- the concept of increased costs of construction or repair due to the operation of new or different building code requirements or other such laws; and,
- the concept of repair or replacement with like kind and quality along with the related concept of betterment.
How To Claim Insurance For Home - Duties After Loss
How To Claim Insurance For Home
This is an extensive group of conditions comprising eight sections, that further encompass thirteen subparagraphs. All of these are highly important policy provisions standard to all homeowners policies and merit your attention.
The introductory paragraph to this section states that the insurer has no duty to provide coverage for an otherwise covered loss if the insurer is prejudiced by the failure of the named insured, another insured, or a representative of an insured, to comply with the list of duties that follows.
This is an extensive group of conditions comprising eight sections, that further encompass thirteen subparagraphs. All of these are highly important policy provisions standard to all homeowners policies and merit your attention.
The introductory paragraph to this section states that the insurer has no duty to provide coverage for an otherwise covered loss if the insurer is prejudiced by the failure of the named insured, another insured, or a representative of an insured, to comply with the list of duties that follows.
Affordable Insurance Company Claims - Comparsion Shopping For Insurance
Affordable Insurance Company Claims
The exclusions of homeowners policies are another area in which comparison shopping may help you make an informed choice of insurer. Homeowners insurance policies may vary widely in terms of how particular exclusions are worded or exceptions to exclusions are worded that have the practical effect of providing broader coverage.
The subject of exclusions is one in which homeowners insurers seek to compete with each other, although their competition is often not very transparent to the insurance consumer. It often requires actual comparison of specimen policy forms from various insurers to discern the differences in the scope of exclusions. Unfortunately, some insurers will not give out specimen copies of their policies and too few consumers take the time to ask for them.
The exclusions of homeowners policies are another area in which comparison shopping may help you make an informed choice of insurer. Homeowners insurance policies may vary widely in terms of how particular exclusions are worded or exceptions to exclusions are worded that have the practical effect of providing broader coverage.
The subject of exclusions is one in which homeowners insurers seek to compete with each other, although their competition is often not very transparent to the insurance consumer. It often requires actual comparison of specimen policy forms from various insurers to discern the differences in the scope of exclusions. Unfortunately, some insurers will not give out specimen copies of their policies and too few consumers take the time to ask for them.
House Insurance Cost Estimator - Additional Insurance Exclusions To Take Note
House Insurance Cost Estimator
ADDITIONAL EXCLUSIONS
The next group of exclusions in the ISO HO 2 and HO 3 is essentially the flip side of several of the exceptions to certain of the personal property named perils, and/or of certain of the Additional Coverages.
Collapse
The first of these exclusions is for loss involving collapse, except as is provided in the Additional Coverages peril of collapse. As discussed, the collapse coverage is essentially a named perils coverage, which, under the ISO HO 2 and HO 3 policies, requires an actual collapse of the building or parts of the building for coverage to arise. This collapse exclusion is also modified by an ensuing loss clause that provides that coverage exists for loss ensuing from an otherwise noncovered collapse if that ensuing loss is caused by a covered peril.
ADDITIONAL EXCLUSIONS
The next group of exclusions in the ISO HO 2 and HO 3 is essentially the flip side of several of the exceptions to certain of the personal property named perils, and/or of certain of the Additional Coverages.
Collapse
The first of these exclusions is for loss involving collapse, except as is provided in the Additional Coverages peril of collapse. As discussed, the collapse coverage is essentially a named perils coverage, which, under the ISO HO 2 and HO 3 policies, requires an actual collapse of the building or parts of the building for coverage to arise. This collapse exclusion is also modified by an ensuing loss clause that provides that coverage exists for loss ensuing from an otherwise noncovered collapse if that ensuing loss is caused by a covered peril.
Home Insurance Coverage Definitions - More Exclusive Damages
Home Insurance Coverage Definitions
Weather Conditions
This exclusion has a substantial qualification and is actually relatively narrow. This exclusion only applies if weather conditions contribute in any way with a cause of loss or an event excluded in any of the exclusions previously discussed to produce the loss. Let's try some illustrative examples.
Weather conditions cause a power failure, resulting in loss to contents of refrigerators and freezers, The exclusion applies. Heavy rain causes a hillside to give way, resulting in a mudslide that damages your house or garage. The exclusion applies. Lighting causes a power failure that causes a sump pump to cease operating, resulting in backup or overflow of the sump. The exclusion applies.
Weather Conditions
This exclusion has a substantial qualification and is actually relatively narrow. This exclusion only applies if weather conditions contribute in any way with a cause of loss or an event excluded in any of the exclusions previously discussed to produce the loss. Let's try some illustrative examples.
Weather conditions cause a power failure, resulting in loss to contents of refrigerators and freezers, The exclusion applies. Heavy rain causes a hillside to give way, resulting in a mudslide that damages your house or garage. The exclusion applies. Lighting causes a power failure that causes a sump pump to cease operating, resulting in backup or overflow of the sump. The exclusion applies.
Insuring Your Home To Value - Exclusion Damages To Your Home
Insuring Your Home To Value
Earth Movement
The earth movement exclusion is not limited to the peril of earthquake, but also includes:
Earth Movement
The earth movement exclusion is not limited to the peril of earthquake, but also includes:
- land shock waves, including tremors associated with volcanic eruptions;
- landslides, mudslides, and mudflow;
- subsidence or sinkholes; and,
- any other earth movement, including earth rising, sinking, or shifting (for example, due to variation or changes in the amount of subsurface water that causes soil to expand or contract).
Homeowner Insurance Coverage Characteristics - Exclusion Coverages
Homeowner Insurance Coverage Characteristics
As previously noted, homeowners policies contain exclusions within the basic policy form. It is, however, necessary to review a homeowners policy's endorsements in order to determine whether any of the exclusions contained in the basic policy form have been modified or any new exclusions have been added to further restrict coverage. Often, when an exclusion contained in the basic policy form has been modified by an endorsement, it can be difficult to figure out what is or is not covered.
Before discussing the particular exclusions, a review of the language that begins the exclusions section needs to be discussed. The ISO HO 3 policy first states the broad all-risk insuring agreement and then begins its prefatory statement with respect to the exclusions. This language states the following.
As previously noted, homeowners policies contain exclusions within the basic policy form. It is, however, necessary to review a homeowners policy's endorsements in order to determine whether any of the exclusions contained in the basic policy form have been modified or any new exclusions have been added to further restrict coverage. Often, when an exclusion contained in the basic policy form has been modified by an endorsement, it can be difficult to figure out what is or is not covered.
Before discussing the particular exclusions, a review of the language that begins the exclusions section needs to be discussed. The ISO HO 3 policy first states the broad all-risk insuring agreement and then begins its prefatory statement with respect to the exclusions. This language states the following.
Insurance For Your Home Business - Furnitures And Other Materials
Insurance For Your Home Business
Glass or Safety Glazing Material
This provision affords coverage for glass breakage that is caused directly by earth movement and also extends to direct physical loss to property that is caused by the glass fragments. For purposes of this coverage, glass means glass or glazing material that is part of the building (i.e., windows and skylights), storm doors, or storm windows.
It does not include glass used in picture frames, mirrors, or glassware. No glass coverage, except as the result of earthquake or earth movement, exists if the building has been vacant for a period of sixty days prior to the date of loss. The glass coverage is included within the policy limit and is not in addition to the policy limit.
Glass or Safety Glazing Material
This provision affords coverage for glass breakage that is caused directly by earth movement and also extends to direct physical loss to property that is caused by the glass fragments. For purposes of this coverage, glass means glass or glazing material that is part of the building (i.e., windows and skylights), storm doors, or storm windows.
It does not include glass used in picture frames, mirrors, or glassware. No glass coverage, except as the result of earthquake or earth movement, exists if the building has been vacant for a period of sixty days prior to the date of loss. The glass coverage is included within the policy limit and is not in addition to the policy limit.
What Is Title Insurance For Your Home - Fire and Lighting Protection
What Is Title Insurance For Your Home
Trees, Shrubs, and Other Plants
The standard ISO HO 2 and HO 3 policies also provide up to 5% of the dwelling policy limit for loss to trees, shrubs, plants, or lawns at the residence premises caused by the perils of:
Trees, Shrubs, and Other Plants
The standard ISO HO 2 and HO 3 policies also provide up to 5% of the dwelling policy limit for loss to trees, shrubs, plants, or lawns at the residence premises caused by the perils of:
- fire or lightning;
- explosion;
- riot or civil commotion;
- aircraft;
- vehicles not owned or operated by residents of the residence premises;
- vandalism and malicious mischief; or,
- theft.
Home Insurance Coverage Characteristics - Loss of Use and Additional Coverages
Home Insurance Coverage Characteristics
Before discussing the exclusions applicable to the property coverages of homeowners policies, there are two additional categories of property coverage grants that need to be discussed. These are:
The loss of use coverages fall into three general categories:
Before discussing the exclusions applicable to the property coverages of homeowners policies, there are two additional categories of property coverage grants that need to be discussed. These are:
- loss of use coverage and
- miscellaneous additional coverages, frequently grouped under a heading in the policy referring to additional or additional protection.
The loss of use coverages fall into three general categories:
- additional living expense;
- fair rental value; and,
- loss due to civil authority.
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