OECD GLOBAL INSURANCE STATISTICS:

PRELIMINARY RESULTS FROM THE DATA COLLECTION

EXERCISE FOR ASSAL MEMBERS AND THE WAY FORWARD

Jean-Marc Salou

Financial Affairs Division

Directorate for Financial and Enterprise Affairs

OECD, Paris

.

OECD-Latin America Seminar on enhancing transparency and monitoring of insurance markets

Montevideo, Uruguay 26-27 September 2013 

.

Questionnaire administration

• Two documents to be returned before 30 May 2013:

• Electronic Excel questionnaire (Sections 1.1 to 1.4)

• Qualitative word questionnaire (Section 1.5)

• Full questionnaire to be received by 3 October 2013, including:

• Sections 2.1 to 2.14

• Any updates or/and revisions from Sections 1.1 to 1.4

• Section 2.15 + methodological notes by 1 November 2013

2

Provision of unaudited and/or estimated data is encouraged when data are not available

In Latin America:

•1st Joint Seminar on Insurance Statistics in Latin America with ASSAL (Asociación de Supervisores de Seguros de América Latina), 26-27 September 2013 in Montevideo, Uruguay

Level of participation

3

• Overall, electronic questionnaires sent to 59 OECD and non-OECD countries,

• Excel questionnaires with 2012 data received so far for:• 19/34 OECD countries• 13/25 non-OECD key partners, of which:

1/7 Asian key partners 12/17 ASSAL key partners

• Qualitative information was in most cases provided with Excel questionnaire

Data completeness can impede data comparability

Annuities Unit-linkedOther Life Insurance

TotalOf Which Pension

Contracts

Mexico P P P Argentina P P P PBolivia P P P Brazil Chile P P P P Colombia P P P P PCosta Rica P P P P PDominican Republic Ecuador El Salvador P P Guatemala P P P P PHonduras Nicaragua P P P Panama Paraguay Peru P P P Puerto Rico P Uruguay P P P P P

4

Data completeness of Section 1.2, about Business Written in the Reporting Country (by selected classes of life insurance), in Latin america, 2012

Core outputs

• “Insurance Statistics Yearbook: Edition 2013” (to be released in December) and a CD-ROM;

• The OECD Global Insurance Market Trends (to be released in October)

• Contribution to an OECD G20 report on Long Term Investments (initial work to start in October)

• A one-stop statistics where historical data series presenting comparable statistics and indicators can be retrieved easily: http://stats.oecd.org/index.aspx

5

All range of

insurance statistics

Direct access: http://stats.oecd.org/Index.aspx?DatasetCode=INSIND

6

Examining potential sources of discrepancies that can jeopardize data comparability

• Check the valuation method used at national level across countries (i.e., mark-to-market vs. book value) and accounting standards (business vs. national accounting)

• Identify where different compilation methods apply across countries, such as the look-through of certain instruments (e.g., mutual funds) across other asset classes

• Timeliness (e.g., time lag calendar vs. fiscal year)

• Sourcing (e.g., entire population of insurance undertakings vs. sample, primary vs. secondary sources)

• Inclusion or exclusion of the business of branches and agencies of domestic insurance companies located abroad

7

Examining potential sources of discrepancies that can jeopardize data comparability (Cont.)

•Inclusion or exclusion of reinsurance in submitted data

– Premiums ceded by direct business are not available in some countries. Instead total premiums (reinsurance + retrocession) are provided. This might generate a double counting problem for users interested in direct cession rates.

– This is why it is very important to have both Premiums Ceded by Direct Insurers and Premiums Ceded by Reinsurers (reinsurance and retrocession) as separate series

PPremium, P, ceded by

the direct insurerReinsurer retrocedes a

part of this premium

Reinsurance Retrocession

8

Preliminary list of follow-up actions to the Seminar

• Liaise bilaterally with countries that did not send back the questionnaire yet

• Follow-up with countries in order to check outliers and further explain trends

• Finalise the report “Stocktaking and Comparative Assessment of Insurance Statistics in Selected Latin American Countries: Preliminary Findings”

• Circulate a list of future outputs and possible contributions for planning purposes

9

SELECTED CHARTS BASED ON PRELIMINARY FIGURES

10

Annual real gross premium growth: Life sector (2011-12) In percent

-48.45.1

14.321.5

24.126.8

-2.4-0.3

8.9

-18.0-13.8-13.5

-10.5-10.4

-9.3-9.2

-7.6-7.6

-5.8-4.6

-3.1-2.3-2.3-2.3-1.8-1.7

-0.50.9

2.02.42.6

3.810.1

11.211.611.7

12.620.9

21.9

-60 -50 -40 -30 -20 -10 0 10 20 30 40

Panama (2)Peru (1)

El Salvador (4)ColombiaUruguay

Costa Rica

SingaporeSouth Africa (4)

Hong Kong (China)

NetherlandsHungary (1)

SpainGreeceFranceAustria

PortugalItaly (3)

AustraliaTurkey (2)Estonia (1)

CanadaFinland (1)

Sweden (1)Czech Republic

Slovenia (1)Slovak Republic

OECD simple averageIceland (1)

OECD weighted averageSwitzerland

Denmark (1)United States

Mexico (1)Ireland

Poland (1)Belgium (1)

NorwayChile (1)

KoreaSelected OECD countries

Selected African and Asian countries

Selected ASSAL (non-OECD) countries

11

Annual real gross premium growth: Non-life sector (2011-12) In percent

-5.91.9

8.39.2

10.511.8

14.5

-7.09.0

13.6

-18.8-16.1

-8.2-7.9

-6.3-5.5-5.1

-4.5-3.9-3.6

-2.8-2.3

0.00.20.40.71.01.1

3.13.33.53.94.04.1

5.55.8

6.38.3

10.411.4

12.215.2

-25 -20 -15 -10 -5 0 5 10 15 20

GuatemalaEl Salvador (4)

PeruCosta Rica

UruguayCuba

Colombia

South Africa (4)Hong Kong (China)

Singapore

Sweden (1)Greece

Hungary (1)United Kingdom

PortugalSlovak Republic

NetherlandsCzech Republic

Italy (3)Spain

Slovenia (1)Finland (1)

AustriaIceland (1)

Denmark (1)OECD simple average

Poland (1)France

SwitzerlandOECD weighted average

United StatesMexico (1)

Israel (1)Norway

AustraliaChile (1)Canada

Estonia (1)Ireland

Turkey (2)Belgium (1)

KoreaSelected OECD countries

Selected African and Asian countries

Selected ASSAL (non-OECD) countries

12

Growth in gross claim payments: Non-Life sector (2011-12)

-17.011.4

16.716.7

20.320.7

22.432.6

-7.210.6

15.7

-31.3-21.8

-12.1-11.9

-7.1-1.4-1.4-1.3-1.0-0.4-0.2

0.10.20.81.01.41.82.73.7

6.57.6

8.89.810.5

23.329.4

32.536.1

62.3

-60 -40 -20 0 20 40 60 80

GuatemalaEl Salvador

PeruColombia

Costa RicaNicaragua

CubaUruguay

South AfricaHong Kong (China) (1)

Singapore

Australia (5)IrelandEstoniaItaly (4)

DenmarkPortugal

FinlandSlovak Republic

SloveniaSpain

HungaryCzech Republic

IsraelCanada (3)Mexico (3)

France (2,3)Netherlands

United StatesSwitzerland

AustriaKorea (1)Belgium

PolandNorwayTurkey

SwedenIcelandGreece

ChileSelected OECD countries

Selected African and Asian countries

Selected ASSAL (non-OECD) countries

13

Combined ratio (2011-2012)

59.0

61.3

67.882

.796.5

141.

019

3.6

72.7

116.

524

0.3

49.467

.273

.274

.676

.677

.978

.178

.881

.884

.088

.693

.593

.894

.594

.895

.197

.498

.810

8.2

108.

610

9.0

109.

011

4.5

119.

311

9.6

124.

113

1.415

6.5

169.

2

0

50

100

150

200

250

300

2012 2011

Sele

cted

OEC

D c

ount

ries

Sele

cted

Afr

ican

and

Asi

an c

ount

ries

Sele

cted

ASS

AL (n

on-O

ECD

) cou

ntrie

s

14

Investment portfolio allocation: Life insurers (2012)As a percentage of total investments

0 25 50 75 100

Panama

El Salvador

Bolivia

Argentina

Chile

Uruguay

Peru

Puerto Rico

Colombia

Mexico

Costa Rica

Bonds Shares Real estate Other

15

Investment portfolio allocation: Non-life insurers (2012)As a percentage of total investments

0 25 50 75 100

El Salvador

Bolivia

Peru

Argentina

Guatemala

Paraguay

Chile

Puerto Rico

Uruguay

Colombia

Mexico

Costa Rica

Bonds Shares Real estate Other

16

Investment portfolio allocation: Composite insurers (2012)As a percentage of total investments

0 25 50 75 100

Nicaragua

El Salvador

Panama

Argentina

Paraguay

Guatemala

Mexico

Costa Rica

Peru

Uruguay

Bonds Shares Real estate Other

17

THANK YOU

18