Risk

Global Risk Alerts

Country: Russia
Date Issued: October 5, 2016
Subject: Global Risk Alert - Russia

Note: Amendments to the Law on Organization of the Insurance Industry Federal were approved by the Russian Duma on June 21, 2016 and signed by the Russian President on July 3, 2016 to create the National Reinsurance Company (NRC) and to impose obligations on local insurers to cede 10% of certain risks to the NRC.

Country: South Korea
Date Issued: July 20, 2016
Subject: Global Risk Alert- South Korea

Note: Under the new Environmental Pollution Damage Compensation and Recovery Act, facility operators will be strictly liable for any damages stemming from environmental pollution that occurred during the installation or operation of their facilities effective July 1st, 2016. According to the Damage Relief Act, approximately 9,000 local business facilities/sites that emit pollution will now be required by law to purchase compulsory environmental liability coverage.

Country: Saudi Arabia
Date Issued: July 19, 2016
Subject: Global Risk Alert- Saudi Arabia

Note: New instructions issued by the Saudi Arabian Monetary Agency (SAMA) in January 2016 are having a significant effect on both local domestic companies and local subsidiaries of offshore parents with property risks in Saudi Arabia.

Country: Papua New Guinea
Date Issued: June 28, 2016
Subject: Global Risk Alert- Papua New Guinea

Note: Existing laws related to non-life insurance in Papua New Guinea (PNG) require the placement of insurance for risks domiciled in PNG to be placed on an admitted basis with locally licensed insurers.

Country: Venezuela
Date Issued: March 17, 2016
Subject: Global Risk Alert- Venezuela Currency Devaluation

Note: In a new wave of economic measures announced by the government on February 15, 2016, Bolivares Fuertes have now been devalued. This will have a significant effect on local insurance policies issued for risks located in Venezuela. These economic measures went into effect March 8, 2016.

Country: India
Date Issued: March 4, 2016
Subject: Global Risk Alert- Increase in National Catastrophe Rates - India

Note: After the devastating floods in Jammu and Kashmir as well as Cyclone Hudhud, local Indian authorities are increasing the government-rated tariff insurance premium rates for Storm, Flood and Inundation perils (STFI) effective March 1, 2016.

Country: United Kingdom
Date Issued: February 29, 2016
Subject: Preparing for August 12, 2016 changes to UK Insurance Act - United Kingdom

The Insurance Act 2015 (the "Act") has now been passed in the United Kingdom and will have a significant effect on all clients with commercial contracts/policies (insurance or reinsurance) issued where the governing law within the policy is stated to be England, Wales, Scotland and Northern Ireland..

Country: Belgium
Date Issued: January 12, 2016
Subject: Global Risk Alert - Workers Comp IPT Reduction – Belgium

Note: As of January 1st, 2016 the Insurance Premium Tax (IPT) applied to Workers Compensation (WC) policies in Belgium will decrease from 4.13% to 3.75%.

Country: Singapore
Date Issued: November 5, 2015
Subject: Global Risk Alert- Work Injury Compensation Act- Singapore

Note: On July 30, 2015, the Ministry of Manpower in Singapore announced that the amount of compensation for workplace-related injuries will be raised by approximately 20%. This change will take effect from January 1, 2016.

Country: United Kingdom
Date Issued: September 21, 2015
Subject: Global Risk Alert - Increase in UK IPT – United Kingdom

Note: Insurance premium tax increases from 6% to 9.5% on November 1st, 2015. Strict rules exist around transitional arrangements in order to prevent forestalling and tax avoidance.

Country: China
Date Issued: August 20, 2015
Subject: Global Risk Alert- Tianjin Explosion– China

Note: Two huge explosions occurred on Wednesday August 12 at warehouses in the port district of Binhai, the northeast Chinese port city of Tianjin, which led to multiple smaller blasts and continuing burning buildings (port, commercial and residential).

Country: Brazil Date Issued: August 7, 2015
Subject: Global Risk Alert - Resolution 322 – Brazil

Note: Over the last few years, Brazilian authorities have issued a number of updates on existing legislation that regulates the way in which premium and risk can be ceded by local insurance companies to reinsurers or global insurance carriers as part of a global program.

Country: China Date Issued: July 29, 2015
Subject: Global Risk Alert - New Food Safety Liability Insurance System – China

Note: The China Insurance Regulatory Commission (CIRC), the State Council's Food and Safety Office and the Food and Drugs Administration have released joint guidelines for products that can be covered by new food safety liability insurance.

Country: Greece
Date Issued: July 22, 2015
Subject: Global Risk Alert - Increase in Insurance Premium Tax (IPT) – Greece

Note: On July 16, 2015, the Hellenic Parliament voted for Law 4334/2015 (FEK 80/16.07.2015) which introduces, among other amendments, increased Insurance Premium Tax (IPT) to be included on all premium invoices, effective immediately.

Country: Indonesia Date Issued: March 16, 2015
Subject: Global Risk Alert - Amendments to Market Changes – Indonesia

Note: The Indonesian regulatory body OJK (Otoritas Jasa Keungan) has announced additional changes to property and motor insurance guidelines as well as new no-claims discounts and new traty and facultative reinsurance regulations. This provides an update to the February 7, 2014 Global Risk Alert - Local Market Changes - INDONESIA.

Country: Vietnam Date Issued: February 1, 2015
Subject: Global Risk Alert - Amendment on Premium Payment Warranties – Vietnam

Note: On December 17, 2014, the Vietnam Ministry of Finance issued an amendment that premium payment warranty period cannot exceed 30 days from the inception date of the insurance policy including any extension period effective February 1, 2015.

Country: China Date Issued: January 20, 2015
Subject: Global Risk Alert - New Trade Credit Insurance Capacity – China

Note: Since 2009, Credit Insurance Premiums in China have grown by around 30% a year and it is now estimated that 16% of Chinese exporters purchase some level of Credit coverage. Due to increased demand, several Property and Casualty insurers have entered the market, joining Sinosure, the China Export and Credit Insurance Corporation (ECA).

Country: India Date Issued: January 1, 2015
Subject: Global Risk Alert - New Property & Group Health Rating Structure – INDIA

Note: The local authority, IRDA (“Insurance Regulatory and Development Authority”) recently issued a circular that sets out underwriting guidelines and a new process to be followed by all insurers issuing property or group health policies to commercial entities effective January 1, 2015.

Country: Italy Date Issued: July 29, 2014
Subject: Global Risk Alert – Auto ID Cards/“Stickers” Abolished – ITALY

The Italian Parliament recently passed a new law enactment abolishing the use of Auto ID stickers/cards as proof of insurance that becomes effective on October 18, 2014.

Country: Ghana
Date Issued: May 27, 2014
Subject: New Premium Payment & Policy Currency Regulations - Ghana

On April 1, 2014, the National Insurance Commission (NIC) introduced and started enforcing the “no premium no cover” regulations in order to reduce the amount of outstanding local premiums, and mitigate the effects of unpaid premiums on the insurance and reinsurance industry in Ghana. Under this directive, all insurance premiums must be received by insurance carriers prior to insurance coverage becoming effective.

Country: Tianjin, China
Date Issued: May 22, 2014
Subject: Global Risk Alert - Cash Before Cover – TIANJIN

On November 1, 2013, Cash Before Cover (CBC) regulations were implemented in Tianjin, China for Property, Liability, Engineering, Accident, Medical, Guarantee and Agriculture Insurance, in addition to Motor Insurance (already implemented on a nationwide basis). CBC is now applicable for any INSURER used in Tianjin regardless of whether the risk insured is located in Tianjin or outside of Tianjin.

Country: Belgium
Date Issued: May 19, 2014
Subject: Global Risk Alert - New Law on Collective Redress – Belgium

The Belgian Parliament recently passed a Bill regarding collective redress procedures that becomes effective on September 1, 2014. Collective redress can be defined as a legal concept in which many similar legal claims are bundled into a single action.

Country: South Africa Date Issued: April 23, 2014
Subject: Global Risk Alert – Protection of Personal Information Act – South Africa

In 2013, the Parliament of South Africa passed a new law, the Protection of Personal Information Act (“POPI”). POPI’s intention is to protect personal information which is processed by public and private parties. Although at this time no date of implementation has been determined, once it is all affected parties will have one year from the effective date to be in compliance.

Country: Puerto Rico
Date Issued: April 11, 2014
Subject: Global Risk Alert - Changes to Surplus Lines Insurance - PUERTO RICO

Note: In Puerto Rico (PR), local authorities are strictly enforcing regulations and processes related to surplus lines insurance. Insurance coverage which cannot be procured from an “authorized insurer” (see definition in bulletin) is known as "surplus lines" insurance. It is important for clients and brokers to therefore comply with the local regulations, and ensure that any reporting is completed according to the new timelines. Aon as a resident licensed surplus lines Producer in PR is well placed to handle all client needs with respect to surplus lines insurance placements.

Country: Germany
Date Issued: April 11, 2014
Subject: Global Risk Alert - Guide to Filing Insurance Premium Tax (IPT) – GERMANY

Note: In 2013, the German Parliament implemented amendments to the Insurance Tax Act which impact the documentation and processing of German Insurance Premium Tax (IPT). The main impact of the new regulations is on insurers that do not maintain a branch inside the European Economic Area (EEA), parties that are liable or responsible for paying IPT (previously insurer and policyholder) and the German territory for which IPT will apply. This Alert provides some additional guidance for global programs arranged with non EU/EEA insurers or via a foreign affiliated company by a non-EU/EEA insurer.

Country: Hungary
Date Issued: March 24, 2014
Subject: Global Risk Alert -New Civil Code Affects Liability of Executive Officers – HUNGARY

Note: The Hungarian Parliament adopted a new Civil Code in February 2013. The law became effective on March 15, 2014, (Act V of 2013). While the new Code addresses everything from family law to corporate law, this Alert focuses specifically on the increased liability Hungarian company executive officers face.

Country: Singapore Date Issued: March 3, 2014
Subject: Global Risk Alert - New Workplace Injury Reporting Requirements - SINGAPORE

Note: On January 6, 2014, amendments to the Workplace Safety and Health (WSH) Act became effective that impact reporting procedures to be followed by employers in the event of incidents involving their employees.

Country: Malaysia
Date Issued: February 27, 2014
Subject: Global Risk Alert - Personal Data Protection Act (PDPA) - MALAYSIA-SINGAPORE

Note: On November 15, 2013 the Malaysian government enacted its first ever comprehensive law on data privacy. The primary purpose of the new law, entitled the Personal Data Protection Act 2010 (PDPA), is to regulate the processing of personal data in commercial transactions thereby protecting the privacy and interests of the individual. It should be noted that commercial data users were only given three months to become compliant with the requirements under the new law.

Country: Indonesia
Date Issued: February 7, 2014
Subject: Indonesia - Local Market Changes

Note: There is recent activity by the local authorities in Indonesia, under the guidance of the new regulatory body OJK, Otoritas Jasa Keungan, that shows consideration for revisions to local market underwriting guidelines. Recently announced amendments to premium tariff rates on property risks and motor physical damage risks appear to be aimed at bolstering the solvency of local insurers, while changes to the existing earthquake pool limits provide further protection and incentive for property owners in Indonesia to more adequately insure this local exposure in the local marketplace.

Country: United States
Date Issued: December 23, 2013
Subject: Global Risk Alert - Terrorism Risk Insurance Act to Expire on December 31, 2014 - UNITED STATES

Note: Terrorism Risk Insurance Act “TRIA” was first implemented by the US Government in 2002 for a 3-year period to provide a federal “backstop” for insurance covering acts of terrorism. To trigger coverage under TRIA, the act must be “Certified” as a loss by the US Government (as further defined in the Act) and cause US$5 million or more in damage. TRIA was extended in 2005 for two years, and a revised version of the original act was signed into law in 2007, reauthorizing the program for seven years via the Terrorism Risk Insurance Program Reauthorization Act in 2007 (TRIPRA, herein after “TRIA”). Under the revised version of the act, TRIA is due to expire on December 31, 2014.

Terrorism Insurance Solutions provides more in-depth information on Aon solutions available to clients with risks located in the US.

Country: Singapore
Date Issued: December 05, 2013
Subject: Personal Data Protection Act (PDPA) - SINGAPORE

Note: On January 2, 2013, the Singapore government enacted the Singapore Personal Data Protection Act, 2012. The new Law, in part, sets standards for the collection, use and disclosure of personal data by organizations while ensuring the rights of the individual are protected. It should be noted that while the Law imposes standards for personal data protection, organizations will also be required to comply with industry-specific standards and common law. The Act will be enforced in phases, with key dates of January 2 and July 2, 2014. Please review the Global Risk Alert for complete details.

Country: MEXICO
Date Issued: September 18, 2013
Subject: Hurricane Ingrid and Tropical Storm Manuel

Mexico has sustained coast to coast Hurricane and Tropical storm winds which have resulted in deaths and widespread physical damage. The states on the east side affected by Hurricane Ingrid are Veracruz, Tamaulipas, San Luis Potosi and Nuevo Leon. On the west side Tropical Storm Manuel affected the states of Guerrero, Michoacán, Colima, Jalisco and Nayarit. Aon has begun contacting clients with operations in the affected states to assist and report claims. Aon’s claim team is on standby 24 hours a day for client support.

Country: AUSTRALIA
Date Issued: June 19, 2013
Subject: New mandatory data breach requirements in 2014
Industry Relevance: All companies operating in Australia

The Australian House of Representatives recently passed a new bill which, if approved by the Senate, will introduce in March 2014 mandatory data breach reporting obligations for entities regulated by the Privacy Act 1998 (Cth) when a "serious data breach" occurs. The new bill stresses the need for companies to develop and place specific Network Security and Privacy (NSP), and to have in place processes that can be followed in the event of a “serious breach”. This Alert provides important information on what is considered a serious breach, what to do when a breach occurs and how to protect your company’s obligations under the new legislation.

Country: BRAZIL
Date Issued: June 17, 2013
Subject: New "Singular Insurance" restrictions effective June 17, 2013
Industry Relevance: Companies with local policies in Brazil

Local Brazilian authorities SUSEP have issued a circular effective June 17, 2013 which will effectively close the door for what are called "Singular Insurances", and which, up until now, has been the only way to obtain approval for the use of specific, one-off policy wordings in Brazil. This Alert provides a description of Singular Insurance and how this affects clients' local policies.

Country: NEW ZEALAND
Effective Date: January 1, 2013
Subject: Fire Services Levy Strict Enforcement
Industry Relevance: All companies operating in New Zealand

Invoices for all insurance policies in New Zealand (NZ) that cover property damage by fire are subject to a statutory levy called “Fire Services Levy” (FSL). The NZ tax authorities are now closely monitoring the collection and payment of FSL so it is important to ensure therefore that appropriate FSL is paid to local authorities within the stipulated time-frame in order to avoid penalties for non-compliance. This Alert provides guidelines for calculating and paying FSL and how Aon NZ can assist in this process.

Country: NETHERLANDS
Effective Date: January 1, 2013
Subject: New Insurance Premium Tax (IPT)
Industry Relevance: All companies operating in the Netherlands

In early November, the Dutch Ministry of Finance announced a new Insurance Premium Tax (IPT) to apply to all insurances which are taxable in the Netherlands. This Alert provides details of the new IPT and how this will affect premium invoices for all policies incepting on or after January 1, 2013 including premiums that apply to a 2012 policy period that are not invoiced until January 1, 2013 or later.

Country: DENMARK Effective Date: January 1, 2013
Subject: New Insurance Premium Tax (IPT)
Industry Relevance: All companies operating in Denmark

On January 1, 2013, new legislation regarding Insurance Premium Taxes (IPT) will be imposed on all local non-life insurance premiums. This new IPT will replace the expiring “Stamp Duty” that historically has been applied when a policy is first issued, and when limits or premiums are subsequently increased. This Alert provides important information regarding the application of this new IPT.

Country: HUNGARY
Effective Date: January 1, 2013
Subject: New Insurance Premium Taxes (IPT) HUNGARY
Industry Relevance: All companies with risks located and insured in Hungary

On July 10, 2012 the Hungarian Parliament announced a new Insurance Tax Bill which will become effective on January 1, 2013. This Insurance Tax Bill addresses new IPT in addition to the Motor Third party liability "accident tax" which was established earlier this year. This Alert provides important information regarding application of the new IPT in Hungary.

Country: MEXICO
Effective Date: December 2012
Subject: Local legislative amendments increase companies and individuals’ legal liability
Industry Relevance: All companies operating in Mexico

Recent amendments to the Mexican Federal Labor Law affect the legal liability of companies and individuals for the accidental death of third parties by up to 540%. These changes came into effect in December 2012. This Alert provides highlights of the changes and coverage items that should be considered.

Country: FRANCE
Effective Date: December 2012
Subject: Health & Welfare benefits reforms starting January 2014
Industry Relevance: All employers operating in France

In January 2012, local authorities announced the first of a series of reforms to the Health and Welfare Benefits regulations in France. Further legislation has now been announced which will alter the requirements for medical plans to be provided by French employers to their employees under local law. This Alert and attachments provides an overview of possible upcoming changes and some recommendations for preparing for new H&B regulations in France.

Country: ARGENTINA
Effective Date: October 25, 2012
Subject: Amended Workers Compensation Act October 2012
Industry Relevance: All companies operating in Argentina

Workers Compensation coverage is a compulsory coverage provided by employers with specialized insurers in Argentina known as ART. In October 2012, an amended WC Act stipulated some changes to indemnification for workers injured in work-related incidents and/or professional illnesses. This Alert provides an important overview of the amendments, as well as the resulting effect on companies with employees in Argentina.

Country: UNITED STATES
Effective Date: June 22, 2012
Subject: Changes to DBA Benefits for US Dept of State (DOS) sponsored contracts
Industry Relevance: All employers in the US

This Alert is applicable for all companies with employees working on US government contracts outside the United States or on US Military installations. The sole source program for DBA coverage for DOS contractors has been suspended and CNA is no longer accepting new or renewal submissions for DBA for DOS contractors. Attached is a Global Risk Alert regarding this important change including information on placing DBA coverage for DOS sponsored contracts as of July 22, 2012.

Country: EUROPE
Effective Date: 2012 Update
Subject: Environmental Impairment Liability (EIL) Update – Financial Guarantees
Industry Relevance: All employers in Singapore

When establishing local legislation as mandated under the European Environmental Liability Directive (ELD), eight of the EC countries elected to additionally require financial guarantees from operators. This Alert provides a status report on the commitments by these countries, and how financial guarantees can be provided. Also attached is a prior Alert from 2009 on this subject for reference, and the Aon ELD brochure for additional information.

Country: NEW SOUTH WALES & QUEENSLAND, AUSTRALIA
Effective Date: January 1, 2012
Subject: New Occupational Health and Safety Act
Industry Relevance: All employers in NSW Australia

On January 1, 2012, New South Wales and Queensland introduced the first of a series of national reforms to the Occupational Health and Safety (OHS) Harmonization legislation aimed at unifying standards country-wide during 2012. This Alert discusses the new legislation which has serious implications for directors, officers, managers, employees and companies. There is a second document with additional information on this subject posted separately.

Country: SINGAPORE
Effective Date: June 1, 2012
Subject: Changes to Work Injury Compensation Act
Industry Relevance: All employers in Singapore

The Singapore government recently passed amendments to the Work Injury Compensation Act (WICA) which took effect on June 1, 2012. As coverage under Work Injury Compensation (WIC) insurance is directly tied to the Act that governs compensation, this will affect all companies with employees in Singapore.

Country: INDIA
Effective Date: April 1, 2012
Subject:: Increase in Motor Third Party Liability Insurance Premium Rates
Industry Relevance: All clients operating vehicles in India

Effective April 1, 2012 the Indian Regulator IRDA announced mandatory premium rates to be used by all insurers insuring motor Third Party Liability (TPL) in India. This is a significant change in the local marketplace which moved away from tariff insurance rates in the last few years. This Alert provides information regarding future placement/renewal of motor TPL and physical damage coverage in India.

Country: INDIA
Effective Date: April 1, 2012
Subject: Natural Catastrophe Premium Rate and Insurance Service Tax Increases
Industry Relevance: All clients with risks located in India

Effective April 1, 2012 local property premium rates for natural catastrophes, Storm, Tempest, Flood and Inundation (STFI) are to be increased, as well as local Indian Service Tax that is applicable on insurance services. These changes will affect all clients with risks located in India. This Alert provides detail of the changes, along with Earthquake and STFI rates and a list of the Earthquake zones that apply for each State/Union territory.

Country: BRAZIL
Effective Date: March 31, 2012
Subject: Update on Status of Reinsurance Legislation
Industry Relevance: All Clients with risks located in Brazil

We have now reached the March 31,2012 date that marks a new period in reinsurance activities in Brazil under Resolutions 225 and 232 (see previous Alerts issued in December 2010 and February 2011). This Alert provides an update on a) the impact of the new legislation as of March 31, 2012 and b) development of local reinsurance cession solutions by local insurers

Country: FRANCE
Effective Date: January 1, 2012
Subject:: New Health & Welfare Benefits Legislation in January 2012
Industry Relevance: All Clients with operations in France

In January 2012, the French government issued two new pieces of legislation that will have an impact on the management of Health & Welfare benefits in France. The first deals with discrimination against management and non-management staff and the second aims at regulating transparency of remuneration earned by insurers/brokers. This Alert provides important details and recommendations regarding this legislation.

Country: THAILAND
Effective Date: March 2012
Subject: Government Establishes Local Catastrophe Fund
Industry Relevance: All Clients with risks located in Thailand

Due to the significant catastrophic events occurring in Thailand in the past year, the Thai Government is establishing a fund of THB 50 billion (approx US$ 1.6 billion) to provide property damage coverage for windstorm damage, flood damage and earthquake. This Alert provides important information regarding this fund and the coverage it can provide.

Country: HUNGARY
Effective Date: January 1, 2012
Subject: New Insurance Premium Tax (IPT) for Motor Third Party Liability Insurance
Industry Relevance: All Clients Operating Vehicles in Hungary

Effective January 1, 2012 the Hungarian Parliament is imposing Insurance Premium Tax (IPT), known as an "accident tax" which will now be applied to all insurance premiums charged for Compulsory Motor Third party Liability insurance. This is an important change in Hungary, where previously insurance premium taxes were only charged on property related policies. This Alert provides details of the tax rates and how the tax will be calculated.

Country: SINGAPORE
Effective Date: September 2011
Subject: Changes to Workplace Safety & Health Act
Industry Relevance: All employers in Singapore

In September 2011, local authorities implemented some changes to the Workplace Safety & Health Act (WSHA) in Singapore, which will affect clients who need to be in compliance with the new regulations. This Alert serves as a reminder to these changes, along with ways that Aon can assist our clients with their safety plans in Singapore.

Country: FRANCOPHONE WEST AFRICA (COUNTRIES UNDER CIMA CODE)
Effective Date: October 1, 2011
Subject: Cash Before Cover (CBC) Modifications
Industry Relevance: All Clients with insurance for risks located in Francophone W. Africa

Effective October 1, 2011, CIMA has modified article 13 of the insurance code, particularly as it addresses payment of premium for countries in Francophone West Africa that have signed and ratified the CIMA treaty and are therefore governed by the CIMA code. As of this date, Cash Before Cover (CBC) regulations now apply in these countries, and premiums must be paid prior to insurance coverage taking effect. This Alert provides important details of the countries governed by the CIMA code and how this change will affect insurance coverage placed in these countries.

Country: PEOPLE'S REPUBLIC OF CHINA
Effective Date: Status Update
Subject: Update to Environmental Pollution Status
Industry Relevance: All companies operating in China

Placement of separate Pollution Legal Liability (PLL) is still not compulsory nationwide in China but is required or encouraged under local regulations in certain provinces and cities. With the Ministry of Environmental Protection (MEP) and China Insurance Regulatory Commission (CIRC) highlighting the pollution situation, the sudden and accidental liability extensions under public liability policies may be insufficient to meet the potential risks for corporations. This Alert provides important information regarding the placement of specific PLL for companies manufacturing or selling products in China that are at risk of causing pollution.

Country: CANADA
Date Issued: Change in Interpretation to Existing Law
Subject: Update on Federal Excise Tax (FET) for Multiple Brokers
Industry Relevance: Client risks located anywhere in Canada placed via a Broker

Historically, the Federal government has charged a 10% excise tax on insurance placed with an insurer licensed in Canada but entered into through a broker outside of Canada. Recently, the CRA announced a change in the way it will handle placements involving multiple brokers. If an insurance policy is issued by a licensed Canadian insurer and a licensed Canadian broker is shown on the policy, no tax will be payable. This Alert provides details of this change and how it affects clients with risks located in Canada.