Insurance News

Reinsurance is one of insurance kinds and the major mechanism on risks redistribution. Reinsurance allows to compensate fluctuations and to reduce damage potential. It is a system of economic relations according to which the insurer, accepting to insurance on them (in view of the financial opportunities), transfers risks, a part of the responsibility on the coordinated conditions to other insurers with the purpose of creation of whenever possible balanced insurance portfolio, financial stability maintenance and insurance operations profitability.
How does it work? Let’s consider the certain insurance company working in the certain region. In current period the insurance company regularly carried out of the obligations. But suddenly powerful downpours have fallen upon region; the rivers have overflown banks and have flooded practically all. During one moment the sums on payments have exceeded the insurance fund and the company was not able to pay them.
Now we shall assume, that understanding this problem, the company has reinsured the risks in the large Russian company, working in all territory of Russia. In that case, the regional company will pay only a part of the sum, and the rest will be paid by the large company for which this payment will not be catastrophic as it insures not only the given region.

There is also a need for the state support - in fact, insurance support (in a counterbalance to direct payments from the budget to the suffered agriculture producers), which allows to use budgetary funds more rationally and to reach greater effect at smaller expenses. On the other hand, the state support of insurance is directed on overcoming of those natural restrictions, which prevent agrarian insurance development in cleanly market conditions – low profitability, complexity of tariffing, etc. Hence, state support allows reaching reduction in price of insurance for agricultural manufacturers through the mechanism of the insurance premium subsidizing, and also puts public services into operation on granting the information and methodological help to the insurance companies. Interaction of the state, insurers and insurants is based on observance of three important principles:
• Information transparency, which foresees active exchange of a trustworthy information between establishments and the organizations, representing the different interested parties;
• Stability of the same establishments existence (the Law on agricultural risks insurance in Spain has been accepted in 1978, and it has not been changed since then);
• Spirit of cooperation between agrarian insurance market participants.
Specificity of crop and definition of damage insurance contract imposes a number of difficulties at work on voluntary insurance on market conditions. Every Russian underwriter or expert on payments knows these problems. Voluntaries of insurance means also the special approach in risks’ portfolio management, and complexities with diversification (including territorial), and difficulties in establishment of limit for own deduction (both on separate regions, and on areas and on facilities).

During last five years the market of building risks insurance develops dynamically. In 2005 almost 80 % of building operations were insured, thus the cumulative insurance premium on construction risks insurance has made 5,3 billion rubles. For comparison, in 2000 the share of insured risks made only 30 %. In 2006 the market has grown almost on 40 % and has got 9,0 billion rubles of the insurance premium. And though adjusted totals for 2007 are not brought yet, according to the forecasts, existing dynamics of growth of building risks insurance market is kept. We expect, that the cumulative insurance premium on insurance of construction risks for a year will make nearby 12 billion rubles.
There are some reasons of growth. First one is that the general rise of the building market, as a whole, and also increases of interest to insurance of building risks affects investors and customers. Development of the market occurs basically due to activization of operations on insurance of social and construction works. Secondly, new kinds of insurance - such, as insurance of after-building guarantee shows that, insurance of the responsibility under state contracts have started to develop actively.

The second annual conference “Modern ways of financing of the commercial real estate: leasing, design financing, IPO”  will offer case study in the context of which leasing experts will tell detail about practical questions of the real estate leasing transactions.
In experts’ opinion, absence of precise legislative regulation of legal procedures of registration of transactions with real estate is to become one of the primary factors, braking leasing development, as way of commercial real estate financing.
So, absence of procedure on real estate leasing transactions registration allows each registering body to carry out it in own way.
Also one more essential moment relies in opacity of the market of the commercial real estate, both as market of “seller”, and its inadequacy, to the pure and transparent financial tool - to leasing.
At the second annual conference “Modern ways of financing of the commercial real estate: leasing, design financing, IPO ” which will pass on May, 15th, at hotel Marriott Grand, experts will in detail tell about practical questions of real estate leasing transactions.
In case study leasing companies, which representatives will tell about pluses and minuses of this way of financing of projects on example of concrete transactions, will also participate.

Russian market of crop insurance is characterized by number of essential features. First of all, it suffers risk of the raised unprofitability, including due to significant losses from natural cataclysms (a drought, a frost, a hailstones, etc.), secondly, absence of actual statistics on unprofitability complicates work - such statistics is not being carried out from the moment of general insurance system disintegration.
Today Russian Agriculture insurance develops in the context of «Spanish model», which overall objective stabilization of farmers’ incomes and involving them in risks management. The system of agrarian insurance in Spain is constructed on interest and, accordingly, interaction of three basic participants - agricultural manufacturers, insurance companies and government. Agricultural manufacturers are interested in receiving insurance protection at the minimal cost. Insurance companies wish to conduct insurance operations with sufficient profitability degree, and thus test the certain shortage of the necessary information and methodological development for work with agrarian sector. And the government, from its part, pursues the state interest, wishes to create conditions for stable work of national agrarian sector in order to protect the manufacturer at minimal public costs.

Insurance of financial risks is a unique opportunity to return money, invested into the construction, in case of failure of obligations from the building organization.
The most widespread kinds of infringements from the builder are double sale of apartments relies in numerous carry of terms of input of the house to operation down to a suspension of construction.
Under the contract insurance case is default by the Counterpart (the building organization, cooperative society …) of financial obligations regarding return of the money resources paid by the Insurant according to the contract, in case of its cancellation by the Insurant owing to following events:
Delay by the counterpart of the term of input of apartment house established by the contract to operation more than for 6 (Six) months.
Not maintenance with the counterpart of registration of the property rights of the Insurant on an apartment within 6 (Six) months from the date of signing the certificate.
The insurance company, can sign the contract for the term from 2 till 5 years (better that the contract of insurance blocked terms of construction for 1-2 quarters).
Insurance of investment risks in share construction costs from 1,5 % from the sum of insurance and above - depending on validities of the contract, a degree of readiness of the house and reliability of participants of building process.

It is a complex of the programs, allowing securing you from contingencies during trips far abroad. The policy of travelers’ assurance will provide to you with reliable protection against a wide spectrum of risks, since expenses for treatment and finishing with civil liability, loss of luggage and even a canceling of trip.
For going abroad tourists the insurance program can provide insurance of medical and transport charges for the period of travel abroad, insurance of luggage, insurance of a civil liability and insurance upon accident.
The insurance sum under the policy can deviate from 15 up to 100 thousand US dollars.
There are special insurance programs for fans of scuba diving or winter kinds of sports.
Green card is a program of insurance of a civil liability for the motorists leaving on own for car. The insurance acts on territories of the countries-participants of a bureau Green card. Becoming the participant of the program, you will secure yourselves against troubles on roads during travel.
According to your desire validity of insurance policy can vary from 15 days till one year.
Depending on a direction of a trip, you can choose one of variants of policy validity:
• All the countries Green card-participants 
• European Union countries
• Countries, which are not entering into the European Union
• Belarus, Moldova and Ukraine.
 

In the fourth quarter 2007 losses of American International Group (AIG) have reached the record sum of $5,29 billion because of the write-offs, connected with crisis in the hypothec market.
The world’s largest insurer did not face such losses for all 89-years history. Company AIG has not justified expectation of the analysts expected smaller losses - at the level of $0,15 per share.
For comparison, during the similar period of 2006 AIG has received net profit in the sum of $3,44 billion, or $1,31 per share.
The corrected losses for the fourth quarter have made $3,2 billion, or $1,25 per share. Thus in the fourth quarter, 2006, the company has taken the corrected net profit at the rate of $3,85 billion, or $1,47 per action.
The chapter of the company Martin Sullivan has declared, that despite of “obviously unsatisfactory results” and possible write-offs in the further, AIG does not think, that contents of its investment portfolio will strongly worsen in long-term prospect.