AGCN Market Alerts

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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: 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: 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: 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: 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: 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: 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: 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: 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.

Click here to request copies of Full Global Risk Alerts issued in 2012, or request information regarding Alerts issued in prior years.

If you have any questions regarding these publications, please contact:

Sarah Borner du Cane
Clyde Ebanks
Marian Nelson

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