Insurers Push for Trade Liberalization
By Steve Tuckey
NU Online News Service, April 21, 8:02 p.m. EDT?European and U.S. insurance trade associations are making a major new push to open up the insurance markets in China, India and Brazil for their member companies.[@@]
In joint letters to trade negotiators and regulators in the three countries, representatives of the American Insurance Association, American Council of Life Insurers and the European Federation of Insurers said that "the presence of foreign insurance providers benefits the consumer through increased competitiveness, efficiency and diversity of the sector."
AIA vice president David Snyder said that companies such as New York-based American International Group and Warren, N.J. based-Chubb have established regional operations in China. But they are prevented by the Beijing government from expanding to create national platforms like those they have in the U.S.
In India, foreign companies are restricted to owning a minority interest in any venture, which limits options severely, Mr. Snyder said.
The Brazilian requirement of significant cessions of risk to local reinsurance companies impairs doing business there, he added.
The three countries are priority markets for U.S. and European insurance. "In the foreseeable future China and India will be the world's largest insurance markets," Mr. Snyder said.
Negotiations now taking place at the World Trade Organization, he noted, are focusing on ways to break down international trade barriers that are preventing free and open trade for insurance and other industries.
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