The China Insurance Regulatory Commission (CIRC) on Sept 5 issued detailed rules governing insurance companies’ investment in real estate projects and unlisted companies.

The rules could help insurance companies expand their investment channels. They include Provisional Measures on Insurance Capital’s Investment in Real Estate and Provisional Measures on Insurance Capital’s Investment in Equity of Non-listed Companies.

Under the rules, an insurance company is allowed to invest a maximum of 5 per cent of its total assets by the end of the previous quarter in the equity of unlisted companies. Its real-estate investment should be no more than 10 per cent of its total assets by the end of the previous quarter.

The Provisional Measures on Insurance Capital’s Investment in Real Estate say that insurers’ real-estate investments must be confined to commercial and office real-estate projects; projects related to the insurance business, such as projects supporting old people, medical and auto services related projects; and real-estate projects for the insurers’ own use.

Insurers are not allowed to invest or sell commercial housing, participate in real-estate development, establish real-estate development companies, or invest in unlisted real-estate companies.

If insurers have already set up or controlled real-estate enterprises, they are required to either withdraw or transfer their investment within a certain period.

The rules also say that insurers should not use their invested real-estate projects as collateral, and should not raise capital from lending and bond issues to finance their real-estate investment.

Under Provisional Measures on Insurance Capital’s Investment in Equity of Non-listed Companies, insurance capital is only allowed to invest in equities of the non-listed companies that are in their growth or mature period. Insurers are prohibited from investing in venture capital funds and enterprises that are highly polluting, high energy-consuming and of low technology, and report low cash return. Insurers are also prohibited from establishing or holding shares in investment institutions.

Insurers’ direct equity investment in unlisted companies is confined to insurance companies, non-insurance financial enterprises, and old-age, medical and auto services businesses.

In order to invest in unlisted companies, insurers are required to keep their solvency ratio above 150 per cent, and to maintain their net assets above 1 billion yuan (US$147.3 million).

In early August, the CIRC issued Provisional Measures on Insurance Capital Operation, in which the CIRC sets the proportion for insurers’ investment in real-estate projects and in equity of non-listed companies. The two sets of rules issued on September 5 are detailed implementation rules of this earlier document.

Chinese insurers are under great pressure to manage their vast insurance capital. According to CIRC, over 2 trillion yuan of insurance capital are expected to suffer from allocation pressure this year, 0.5 trillion yuan higher than predicted at the beginning of the year.

83% — Percentage of full-time workers 18 to 64 covered by health insurance during all or part of 2008.

78% — Percentage of workers in private industry who receive a paid vacation as one of their employment benefits.

Our jobs

7.6 million — Number of workers who hold down more than one job. So-called moonlighters comprise 5 percent of the working population. Of these, 4 million work full time at their primary job and part time at their other job.

10.1 million — Number of self-employed workers.

26.4 million — Number of female workers 16 and older in management, professional and related occupations. Among male workers 16 and older, 24.7 million were employed in management, professional and related occupations.

27% — Percentage of workers 16 and older who work more than 40 hours a week. About 7 percent work 60 or more hours a week.

4.1 — Median number of years workers have been with their current employer. About 10 percent of those employed have been with their current employer for 20 or more years.

10.3 million — Number of independent contractors.

16.1 million — Number of labor union members nationwide.

Minus-5.3% — Percentage decline in employment in the United States, between September 2008 and September 2009. Employment declined in 329 of the 334 largest counties (large counties are defined as having employment levels of 75,000 or more).

5.9 million — The number of people who work at home.

Another Day, Another Dollar

$46,367 and $35,745 — The 2008 real median earnings for male and female full-time, year-round workers, respectively.

Hot jobs

53% — Projected percentage growth from 2006 to 2016 in the number of network systems and data communication analysts. Forecasters expect this occupation to grow at a faster rate than any other. Meanwhile, the occupation expected to add more positions over this period than any other is registered nurses (587,000).

Early, Lonely and Long — the Commute to Work

17.7 million — Number of commuters who leave for work between midnight and 5:59 a.m. That’s 13 percent of all commuters.

25.5 minutes — The average time it takes people in the nation to commute to work.

3.5 million — Number of workers who face extreme commutes to work of 90 or more minutes each day.

Our research indicates that the Indian IVD market has considerable scope for growth in the coming years. Increasing healthcare expenditure, increasing prevalence of lifestyle diseases, improving access to healthcare centers, and increasing prevalence of health insurance are expected to drive this market in the coming years. Our analysis of the industry indicates that the trend will move toward Rapid Diagnostic Tests (RDTs) and Point-of-Care Testing (POCT). Apart from this, we have also evaluated various factors that will propel the growth of the Indian IVD market during the forecast period (2010-2012).

Besides this, we have done thorough research and prudent analysis of the Global IVD market and identified some critical factors acting as a catalyst for the industryaEUR(TM)s current and future growth outlook. The report reveals that a boost in demand for diagnostics services will drive renewed investments in the IVD market at the global level. Moreover, products with improved specificity and sensitivity speed-up testing and an increase in high-quality molecular market will pave the growth of the market in coming years by drawing attention of more players towards the market.

aEURoeGlobal In Vitro Diagnostic Market AnalysisaEUR provides thorough research and rational analysis along with reliable statistics of the Global IVD market. The report also provides extensive information on the traditional IVD testing markets as well as on the emerging technologies. An insight of trends prevailing in the regional IVD markets across the globe has also been covered in the report. Analysis and statistics regarding market size, growth, share, segmentation and geographic distribution, and trends in technology development have been thoroughly studied in the report to give a comprehensive view of the IVD market. The report has thoroughly examined current market trends; industrial developments, and competitive landscape to enable clients understand the market structure and its progress in coming years.

About RNCOS:

RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. Our professionals study and analyze the industry and its various components, with comprehensive study of the changing market behavior. Our accuracy and data precision proves beneficial in terms of pricing and time management that assist the consultants in meeting their objectives in a cost-effective and timely manner.

The plan by the National health insurance Fund to increase the amount each worker paid per month would improve medical services, making healthcare more accessible to the poor, Medical Services minister Anyang’ Nyong’o said on Thursday.

“If you make Sh800,000 like I do, and contribute Sh2,000 monthly, the increase amounts to about Sh66 per day,” he said. “I’m going for lunch at the Serena Hotel today and will spend about Sh2,500 on lunch, so why shouldn’t I be willing to spend an extra Sh66?”

Responsibility of Government

Prof Nyong’o said the expanded plan would increase health coverage including treatment for diabetes and kidney disease.

The Central Organisation of Trade Unions has criticised the Fund, saying over-taxed Kenyans will pay 600 per cent more monthly.

“If you look at the new Constitution, it says supplying healthcare is the responsibility of the government. It doesn’t say workers are responsible,” said Cotu secretary general Francis Atwoli.

Flavia Nansubuga, the operational manager of IAA, told the Anti-corruption Court yesterday that Wakhweya was registered as a silver client of IAA in the name of Mulumba Inc, an NGO that was contracted to carry out Global Fund activities.

Nansubuga told Justice Paul Mugamba that Wakhweya registered at IAA in 2005. Personal silver cover gives patients unlimited access to treatment.

David Namanya, the former finance manager of the Joint Clinical Research Centre (JCRC) denied reports that the centre received sh1,855,000 from Mulumba Inc as payment for counselling and training of the NGO staff.

Namanya said JCRC never carried out such activities. “We did not have such records when the Police came to verify whether we issued receipts acknowledging payment,” Namanya said.

Patrick Wafula, another prosecution witness, testified that Bududa Hospital never received sh626,000 from Mulumba Inc for tuberculosis counseling and payment for baseline analysis and production of data.

He disowned a receipt allegedly issued by Mulumba Inc for payment for counselling.

Wafula, an administrator at Budada Hospital, told court that the hospital did not receive any fund in relation to Global Fund activities. Wakhweya is alleged to have mismanaged sh31,915,040 he received from the Project Management Unit in March 2005. The money was meant to cater for HIV/AIDS related activities, support orphans and other vulnerable children.

Wakhweya also faces charges of uttering false documents, claiming he had carried out several activities in connection with the project. Prosecution led by state attorney Jane Okuo said Wakhweya did not account for the money. The case was adjourned to October14.

The insurer added in a statement on Monday that it was too early to tell how much damage had been caused by the magnitude 7.1 earthquake which struck Christchurch over the weekend.

Christchurch City Council says there are more than 500 damaged buildings, 90 of which are in the central city area, while some parts of the city had lost water and power.

Gale-force winds and heavy rain have hampered clean-up operations, while hundreds of people have been forced to stay in temporary accomodation after their homes were damaged or destroyed.

IAG managing director and chief executive Michael Wilkins said the group’s New Zealand businesses – State and NZI – had responded to more than 2,000 calls.

“At this stage, it is too early to determine the extent of damage to our customers’ property, however, we expect it is likely to be significant,” Mr Wilkins said in the statement.

“From a financial perspective, the entire event will be covered by our reinsurance arrangements.”

IAG said its earnings guidance for 2010/11 was unchanged.

At IAG’s full year results presentation last month, the insurer said its insurance margin, a key driver of profit, was expected to be between 10.5 per cent and 12.5 per cent in 2010 11, while gross written premium was would grow by three to five per cent.

Meanwhile, another insurer, Suncorp-Metway Ltd (ASX:SUN), said it would be “some time before an accurate assessment of claims volumes and costs can be provided”, following the earthquake.

“Suncorp’s financial exposure is likely to be limited due to New Zealand’s statutory framework and the Group’s conservative reinsurance arrangements,” the Brisbane-headquartered company said in a statement.

Suncorp, which operates the Vero New Zealand and AA Insurance businesses there, said the New Zealand earthquake commission provided the “first layer of household cover” in the event of an earthquake.

“This generally caps at $NZ100,000 plus GST per dwelling and $NZ20,000 plus GST for contents,” Suncorp said.

“Any household exposures beyond this and Suncorp’s commercial property risks are supported by the group’s reinsurance arrangements, which include a cap of $NZ60 million on its Vero NZ and AAI domestic earthquake exposures.”

Other businesses to have issued statements on Monday in relation to the earthquake include bread, spreads and milk company Goodman Fielder (ASX:GFF) and NZ-based retailer The Warehouse Group Ltd (ASX:WHS).

Goodman Fielder said the company’s milk plant and bakery in Christchurch continued to function normally, while the flour mill suffered limited damage that was being repaired.

“Fresh milk and bread will continue to be available in New Zealand’s south island, although a limited range or products may be available for a few days,” Goodman Fielder said.

“The financial impact on the company is expected to be minimal.”

The Warehouse Group said all its stores in the Christchurch area had been inspected by structural engineers and would reopen for business on Monday.

The company said its distribution centre suffered no significant damage and normal operations were expected to resume during the week.

“Alternative arrangements for the supply of goods to Warehouse stores in the south island in the mean time have been implemented,” The Warehouse said.

Kotak Secure Invest Insurance is an equity exposure plan and is backed by capital guarantees with in-built investment advice of the guarantee fund. It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions, the company said in a statement on Thursday .

Kotak Wealth Insurance is a complete package that provides investment growth along with comprehensive triple benefits in the event of death. Its power-packed range of eight fund options allows customers to balance their risk profile with the tenure their investments.

* It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions, the company said in a statement on Thursday .

* Kotak Wealth Insurance is a complete package that provides investment growth along with comprehensive triple benefits in the event of death.

MUMBAI – Kotak life insurance on Thursday launched two new unit-linked insurance plans (ULIPs) — Kotak Secure Invest Insurance and Kotak Wealth Insurance-meeting the new Irda guidelines.

Kotak Secure Invest Insurance is an equity exposure plan and is backed by capital guarantees with in-built investment advice of the guarantee fund. It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions, the company said in a statement on Thursday .

ENTRY OF NEW PLAYERS TO BOOST MALAYSIA’S TAKAFUL INDUSTRY: AIA

KUALA LUMPUR – The entry of more new players into the financial system will enhance the breadth and depth of takaful solutions in Malaysia, according to American International Assurance Bhd (AIA).

AIA and its joint venture partner Alliance Bank Malaysia Bhd have received approval from central bank Bank Negara Malaysia to operate a family takaful licence business.

AUST-BASED INSURER AIG SAYS NZ EARTHQUAKE CLAIMS TO BE COVERED

SYDNEY – Insurance Australia Group Ltd (ASX:AIG) expects claims from the New Zealand earthquake to be “entirely covered” by reinsurance arrangements and reaffirmed earnings guidance for the current year.

The insurer added in a statement on Monday that it was too early to tell how much damage had been caused by the magnitude 7.1 earthquake which struck Christchurch over the weekend.

MARSH INDIA EYES LAUNCHING INSURANCE COVER FOR WATER UTILITIES

MUMBAI – American insurance brokerage firm Marsh Inc on Friday launched a specialist contamination insurance product for water utilities in the global markets and is in talks with insurance companies to roll out the product in the Indian market.

A water contamination insurance cover helps strengthen the resilience of market players to risks in the wake of the tightening regulatory regimes and the increased terror risks globally.

“We have received applications from more than 50% of Fortune 500 companies, all major unions, and government entities in all 50 states and the District of Columbia,” said HHS Secretary Kathleen Sebelius, in a statement. The nearly 2,000 plans already approved represent just a segment of applications, according to HHS.

The program is meant as a bridge until 2014, when state-based health insurance exchanges will be operating, but it’s designed as a one-shot deal that will end when its money runs dry. Experts have guessed that could happen pretty quickly. Joel Michaels, the partner in charge of the health industry advisory practice at McDermott Will & Emery, had pointed out the program is “first-come, first-served. … If you haven’t gotten in line in time, you’ll be out of luck.” Michaels had also said that insurers have been permitted to submit claims on behalf of participating plan sponsors (BestWire, May 6, 2010).

A May survey by Hewitt Associates had shown that of employers who offer health coverage to pre-Medicare retirees, 76% planned to apply to get the program to potentially pay for some of it (BestWire, May 26, 2010).

However, the pool of eligible companies is less now than it has been in the past. According to HHS, the number of pre-Medicare retirees provided with coverage by large firms declined from 66% in 1988 to 29% in 2009.

HHS will keep taking and reviewing applications, the agency said, getting to them in the order they come in.

Launching the Smart Performer and Unit Plus Super plans here, SBI Life MD & CEO MN Rao said, “These plans provide customers across socio-economic profiles a stronger rationale to participate in equity markets. Customers will find that these plans are highly beneficial as they further reinforce security and long-term wealth creation.”

With these Unit Linked Insurance Plans (Ulips), SBI Life, a JV between State Bank and BNP Paribas, claims to have become the first insurer to launch Ulips under the new IRDA norms that make it mandatory to offer life cover on any Ulip among others.

The IRDA recently issued a set of new guidelines for Ulips after its spat with Sebi, when the latter sought to control Ulips and on April 9 banned all Ulips. But with government siding with IRDA, Sebi lost the battle.

In compliance with new IRDA norms, these newly launched Ulips offer higher protection, multiple investment options and a range of riders offering additional protection, Rao said.

Unit Plus Super offers guaranteed addition, lower charges partial withdrawals and premium redirection, Smart Performer offers automatic rebalancing and highest daily NAV guarantee.

The Smart Performer offers a policyholder 5 per cent more return than the highest NAV during the first seven years or NAV at maturity, automatic rebalancing allows a consumer to avail the potential of higher gains, as only 20 per cent of the premium goes to index fund and 80 per cent goes to daily protect fund. Also, gains of over 15 per cent from the index fund are auto-transferred to the daily protect fund.

Rao said the company will shortly be coming out with a bouquet of uniquely-featured Ulips in the child, non-medical, pension and high networth individual categories.

The increased burdens on financial providers and adverse consequences for consumers certainly outweigh any measurable accompanying benefits,” Bob Rusbuldt. president and chief executive officer of the Independent Insurance Agents & Brokers of America, wrote in the letter to the SEC. He called the proposal “unwarranted” and said it would have “seismic repercussions” if such a standard were extended into the insurance world.

Certain life insurance agents ? namely securities licensed insurance agents and broker-dealer firms ? could face increased legal liability depending on how the SEC rules (BestWire, Aug. 16, 2010). While the Big I members deal largely with property/casualty business, Charles Symington, its senior vice president of government affairs, said that “a large number of our members do sell these products.”

“At the end of the day, we believe it would be harmful to consumers — particularly middle-class consumers,” Symington said of the universal standard. “We believe our members provide a valuable service in counseling that level of consumer.” He argued that middle-class customers may not be able to afford the expensive advice available to more affluent people if the main-street Big I members “decide that they’ll no longer offer this type of service to clients.”

Under the Dodd-Frank Act, the SEC has been called on to study the legal standards of care for broker-dealers and investment advisers when providing investment advice about securities to individual investors. Investment advisers are held to a fiduciary standard, meaning they must put the interest of their clients before their own, whereas a broker-dealer must observe standards that include an obligation to make recommendations that are suitable for their clients, according to SEC Chairwoman Mary L. Schapiro (BestWire, Aug. 16, 2010).

This week’s letter to the SEC contended that “identifying the ideal product among many different alternatives is not as simplistic, straightforward, and clear-cut as some mistakenly believe. Any such determination is inherently subjective.” Establishing “an amorphous and subjective standard” could “reduce the universe of qualified professionals willing to offer knowledgeable assistance and investment services,” Rusbuldt wrote.