Axis

Tuesday, July 28, 2015

Uninsurance

In 2010, about ten million citizens in America have lived without any insurance for a whole year. In other developing nations where surviving the day is more important than ensuring for what the possible things to happen, it would be difficult to compute. Cambodia has reported that more than half of their citizens do not even know what health insurance is. Jakarta, Indonesia is reported to have sold more car insurances in the past years than health ones.

For many of these people, the consequences of living day to day are in dire disadvantages.

According to the studies submitted to Axis Capital and distributed to its insurance and reinsurance companies from its main location in Bermuda to Singapore, Australia, United Kingdom and to over ten states around the United States of America, more and more citizens had dropped their policies. More than four million adolescents are medically uninsured. Their age estimate would be between 10-18 years old. In reviews, partners do not think it would be needed while their kids are young. Uninsured rates are higher among the poor and near poor, racial and ethnical minority and noncitizens than among young adults with obvious reasons. Others think they have existing insurance but turned out to be engaged in a scam instead.

Having health insurance does not ensure adolescents’ access to affordable, high-quality services given problems associated with high out-of-pocket cost-sharing requirements, limitations in benefit packages, and low provider reimbursement levels. For example, the current system for financing health insurance coverage leads to underinvestment in disease prevention and treatment in some areas that are particularly problematic for adolescents.

The following are the possible consequences for not taking any insurance:

1. Reduced Access to Timely and Quality Care

• Uninsured adults and children are less likely to receive preventive care, including regular checkups, diagnostic screenings and tests and prenatal care for pregnant women.

• Uninsured children are less likely than insured children to receive medical attention for common childhood illnesses or injuries.

• Uninsured persons are less likely to have a regular source of care and more likely to seek care in clinic or emergency room, compared to the insured.

2. Premature Mortality

• Uninsured individuals are often sicker than insured patients when seeking care.

• Life-threatening diseases are more likely to be diagnosed in late stages for uninsured patients, reducing the likelihood of full recovery.

• Newborns of uninsured mothers have a greater risk of adverse health outcomes at birth, including death.

3. Personal & Family Financial Strain

• Without coverage, uninsured patients often face significantly higher charges for care than the insured.

• High rates of personal bankruptcy result from lack of insurance coverage for significant medical expenses.

• Uninsured employees are more likely to experience greater annual income losses, reduced labor force participation and diminished job productivity due to untreated illnesses and conditions.

Monday, July 20, 2015

Axis Capital Group Insurance Update: Asian Bi-annual Report

With the great rise in business development and industrial growth in Asia, asset values are generally enabling insurers to pay higher premium for increased protection levels. Not that the risk is higher but people have been slowly realizing the importance of private insurance. Life and non-life insurance have high number of patrons across the continent with the highest of mobile insurance policies provided in Jakarta, Indonesia and Bangkok, Thailand; life insurance in Singapore and health insurance in Seoul, South Korea and Vietnam.

Review of this past 6 months activity shows that regional gross domestic product (GDP) growth is projected to remain solid at 5.4%-5.5% this year and rebound to 5.5% - 5.8% in 2015. Inflation is also expected to remain benign across much of the region, except in India and Indonesia, where monetary policy will remain tight to fend off inflationary pressures.

For the next 6 months remaining of 2015, major developing countries are expected to grow by 5% more. Consequently, the region’s continuing appeal to foreign insurers seeking growth opportunities remains strong.

The opportunity to offer private health insurance in Asia is also expanding, due to rising individual income levels and government budget constraints. In China, the health insurance market is growing strongly as consumers turn to the private sector to fill in the gaps left by inadequate government schemes while everyone waits for the success of Indonesia’s own insurance scheme. India is another promising market for personal health insurance; only 15% of the population is covered by government health insurance and 2.2% by private health insurance.

In this evolving environment, insurance has also expanded to dominate online sources and this method has slowly been integrated to all operations in Asia. However, it would take time for Asians to adapt as there are also a lot of cyber insurance scams which pose as threat to insurer’s data and privacy. Insurers in Asia will need to consider the following adjustments to their service, products and compliance efforts in 2015:

1.            Streamline the value chain via the cloud and traditional business process outsourcing (BPO)
2.            Expand products and services to address the growing needs of the high-net-worth (HNW) market
3.            Adapt product strategies to the changing regulatory environment
4.            Increase compliance to respond to growing sales and consumer protection regulations
5.            Develop capital and Merger and Acquisition (M&A) opportunities
6.            Reposition investment strategies
7.            Enhance data controls and metrics

Sunday, July 12, 2015

Possible Reasons you are turned down for Life Insurance Application


It really is frustrating when you get rejected so many times when you are applying for one of the most vital necessities in our lives nowadays. Before you get frustrated and file any complaints against your insurance company, you should first understand the possible reason behind it.

The following are existing general policies in the insurance industry. Axis Capital, with a group of insurance and reinsurance companies based in Bermuda, Australia, United Kingdom, and Singapore as well as in on over ten states in the United States has these existing general policies in the insurance industry:

1. You have specific health condition
Critical health issues may affect your insurance application. Someone who has cancer or has had a heart attack might be declined for a traditional life insurance as they are perceived to require a more special policy and attention. There are, however, people who get declined for life insurance for health reasons simply because they applied with the wrong insurance company. For these cases, you have to inquire to high-risk insurance company to help you figure out the best course of action.

2. You participate in high-risk activities
Let’s be honest here. The possibility of underrated claim is high during these situations and the insurance company may face a lot of loss. Some professions which also require higher risk may also not be permitted. There are a few insurance companies which can insure scuba divers but this is depending on the type of diving and the frequency of your diving activities.

3. You have some financial issues
To get approved for a life insurance, there has to be financial justification. It’s would the best time to review your status as soon as possible. If you don’t have any income but your spouse does, you can typically get as much coverage as your spouse. If you don’t have income and can’t financially justify the need for life insurance, you might get declined for a life insurance policy.

4. You have a DUI
Driving under the Influence (DUI) is a serious offense especially in cities and countries which has strict regulations against the use of illegal drugs or alcohol. In Jakarta, Indonesia, you’ll be lucky enough to pass their death penalty to file life insurance but it is highly unlikely.

If you have had more than three DUIs in the last 10 years, every insurance company would decline you. However, if you have one or two DUIs over the last 10 years, some insurance companies will decline you while others may not. If you have been declined due to a DUI, it is possible you applied with the wrong insurance company.

Wednesday, July 8, 2015

Data Controls and Metrics in Asia Pacific



Developed countries from the West are not the only ones who are upgrading their systems against insurance theft. With the widespread of technology and the integration of new knowledge and computer geniuses, even those living in the suburbs of Africa now has their own system to secure their data and confidential information.

Axis Capital, with group of insurance and reinsurance companies in Bermuda, Australia, United Kingdom, Singapore and in over ten states in the US, is one of the many companies reported to first integrate a more tighter security system in the start of 2015 in the Asia-Pacific.

Data theft and fraud are fast becoming key issues for regulators and law enforcement across Asia-Pacific, as elsewhere. Insurers are paying close attention to the new data privacy rules being drafted in response to the increased risks.

According to reviews, regional and global insurers with operations in the Asia Pacific region also are grappling with the issue of data sovereignty — which can be transmitted among jurisdictions — as the data privacy regulations vary across the region. More stringent data protection rules in Australia and Singapore also may create questions about the identity of countries in which insurers store their data. A subpoena issued by a government to an insurer to provide certain data requires knowledge of where it has been physically stored. Insurers also will need to identify new metrics and processes to monitor data security and compliance.

Many insurers in the region will continue to enhance their data controls in the latter part of 2015, prompted primarily by new and stricter regulations. Asia-Pacific insurers must pay closer attention to the changing cyber security laws and focus more stringently on data security, network crime legislation and law enforcement. Singapore’s Personal Data Protection Act, for example, includes rules on the collection, use, disclosure and care of personal data. The law establishes penalties for breaches and a “Do Not Call” registry.

Major developing cities like Jakarta, Indonesia, China, Tokyo, Japan, Thailand and Vietnam also are reviewing legislation and drafting bills or have set up government agencies and task forces to confront cybercrime. Insurers will need to review and adjust to consumer and distributor data privacy controls as regulations continue to evolve.

Despite the thriving state of security and protection within the region, there are still issues of sovereignty. Cross border sales between branches and main companies also pose as a challenge with different regulations and bylaws that are needed for each country. The data that can be transmitted are crucial to both investments and risk managements. With the help of cloud-storing, companies should be cognizant on their information.

Friday, July 3, 2015

Importance of Insurance for Retirees

We have so many things to worry about when we get older. As time flies by quickly, the pressure of keeping up to enjoy the future gets harder and harder. Some of us even tend to live by day, not thinking much of the future because what we have in the present seems hard enough to carry. 

The question thrown: Why do I need insurance when I retire?

 The answer is simple: do you have any loved ones? Of course you do.

Now, let us review to the basics and details of it. 

Axis Capital, with a group of insurance and reinsurance companies based in Bermuda and offices in Australia, the United Kingdom, Singapore and over 10 states in the United States emphasizes the importance of insurance for retirees, even when you think you don’t need it anymore.

1. Source of Income

We all know that even if you retire, you would still have to take care of your own needs. You don’t want to depend entirely on your children, do you? Some children and grandchildren may be the ones to depend on you even if you retire. And of course, you can’t just turn your back from them. Life insurance can provide funds that you need.

2. Something to Leave Behind

We cannot deny that we will all be gone from this world. Do you have something to leave behind for your children or their education? 

Many retirees from close family-knit cities like Jakarta, Indonesia and Singapore turn to insurance in fear that their children would not be able to survive after they pass away. Life insurance is mostly important children with special needs as well to get them by when you are already gone. 

3. You have a pension that dies with you. 

If you have a pension with no survivorship option, how do you replace that income stream for your spouse? Once again, life insurance can replace the lost pension income by creating the assets that can be turned into an income stream.

4. Pay your debts

During the times that you are still working and active, there may been debts that you were not able to pay. According to some reports, most retirees have installment and education debts which remain unpaid. Some also have vehicle loans. Many retirees still have mortgage debt. You wouldn’t want to face files of complaints, would you? Life insurance can make sure these debts are paid off at the debtor’s death

5. You’d like to leave a legacy.

Life insurance is a very efficient tool to use for estate planning and the equalization of assets being left to heirs and for charitable planning. A small premium for life insurance can create the money at death to accomplish these goals.

Another option is to get insurance while you are still young. Be smart enough and enjoy a tax-free income stream in retirement from the cash-value of your policy.