Global: Losses For Wilma May Reach US$12 Billion
US insured losses for Hurricane Wilma are likely to range between US$4 billion to $12 billion, according to catastrophe modeling companies.
Risk Management Solutions revised its estimate for insured losses upwards to $8 billion to $12 billion, from its original estimate of $6 billion to $10 billion. This includes onshore damage resulting from wind and coastal storm surge, business interruption and increased costs for materials and services needed for repairs (demand surge).

AIR Worldwide Corp projected insured losses of between $6 billion and $9 billion in Florida, while EQECAT estimated insured losses in Florida at between $4 billion and $8 billion. In addition, EQECAT said it estimates that Wilma’s earlier landfall in Mexico could cause insured losses of $1 billion to $3 billion.

The Philippines: Last Two Local Reinsurers To Merge
Stockholders of National Reinsurance of the Philippines (National Re) and Universal Malayan Reinsurance Corp (UMRe) have approved the plan to merge the two companies.

The merger still needs to be approved by government regulators such as the Securities and Exchange Commission and the Insurance Commission. Once approved, National Re will be the surviving entity.

In a statement released by the Bank of the Philippine Islands, which has a 49.38% stake in UMRe, “the merger has a very strong strategic rationale – to create the dominant Philippine reinsurance entity with greater underwriting capacity to service the requirements of domestic life and nonlife insurance companies”.

After the merger, National Re would enjoy an asset base of 5.5 billion pesos (US$100 million) and an equity base of 3 billion pesos, putting it 3 billion pesos, thus making it competitive with reinsurance firms in Southeast Asia, the statement said.

S Korea: Drunk Drivers To Pay More Premiums
Starting next year, those who are caught drunk driving, driving without a license or fleeing from the scene of an accident will have to pay 20% more in premiums for compulsory non-life insurance.

Those who violate traffic laws more than three times over three years will have to pay premiums that will cost up to 60% more, although for now, the maximum it can reach is 30%, said the Korea Insurance Development Institute (KIDI).

It added that one violation of any of the three rules will be all it takes for a policyholder to be subjected to an additional premium payment.

In the cases of jaywalking, violation of traffic lights, speeding and crossing the median line, the first violation is forgiven but policyholders have to 5% more per violation, starting with the second.

KIDI said that non-life insurers will use records being compiled for one year starting in May with help from the National Police Agency.

Thailand: Bulk Discounts Given For Voluntary Car Insurance
Vehicle owners now have an added incentive to take out voluntary motor insurance, as the Insurance Department has asked all insurers to offer a 10% discount on bulk purchases.

Civil servants and company employees are entitled to the discount if they purchase at least 20 voluntary policies at the same time, Director-General Potjanee Thanavaranit said.

Individuals can also obtain the discount by purchasing coverage for at least three cars that belong to any legal member of the family. Previously, all the cars had to be under the name of the policyholder to be eligible for the discount.

Under the scheme, cars and motorcycles are counted separately, and renewals are subject to the insurer's review of each car's historical profile.

The promotion by the department is an attempt to lower the premium rate for the voluntary type of policy and encourage its take-up. The department's regulations require only third-party insurance.

Hong Kong: Push For Cap On Medical Claims
The Medical Association has urged the government to limit claims for medical negligence after another sharp rise in professional indemnity costs.

Annual professional indemnity premiums for obstetricians went up by 100% last year, while premiums for other specialties rose by 40 to 80%. The premiums are paid to the Medical Protection Society, the sole organisation insuring doctors for medical indemnity.

Dr Choi Kin, President of the Medical Association, warned that if nothing was done to limit claims, Hong Kong could go the way of Australia and Ireland, where governments have been forced to step in and underwrite the risks. He added that the association was having discussions with Chief Executive Donald Tsang on its concerns.

Some obstetricians in the city have already alerted the association that they will have to stop practice if the premiums keep rising. This might be detrimental to the healthcare system as it would push specialist services to public hospitals, which are already over-stretched, said Dr Choi.