Morning Briefing: Are there opportunities for insurers in Cuba?

Are there opportunities for insurers in Cuba?
When President Obama announced a softening of restrictions against Cuba many in the insurance business began weighing the possibilities. In a country where there are only two insurers, owned by a state-controlled company, there could be the potential for a lucrative new market to open up.
However, even when current bans on business are eventually lifted there will still be significant challenges according to a report from the Insurance Information Institute.

“The reopening of U.S. diplomatic relations with Cuba may in the future present intriguing commercial opportunities for U.S. businesses, including property/casualty insurers,” said III president Robert Hartwig. “Cuba’s current economic and political situation may not create an ideal business environment for insurers today.”

Hartwig noted that Cuba’s risk profile, which includes hurricanes and earthquakes, makes the kind of environment which requires the kind of protection that only insurers can provide.

The report highlights the government in Havana’s limited financial ability to fully protect against the risks, which should open the doors for international insurers – if Cubans can be persuaded that their government cannot provide the full protection that they need.

 “As Cuba’s economy potentially opens itself to private investments from around the world, insurers and reinsurers will carefully monitor developments and seek opportunities as economic, political and regulatory considerations allow,” Hartwig commented.
 
Aviva Canada helps secure fraud charges against professionals
Insurance fraud charges have been laid against a chiropractor, a paralegal and a clinic employee following an investigation by Toronto Police and Aviva Canada. One of the insurer’s clients sparked the probe after allegedly being pressured to lie about auto accident injuries. 

Undercover investigators obtained video footage of the three professionals explaining how they could secure insurance payouts even though the investigators said that they were not injured.

Chiropractor Edward Hayes, clinic employee Michelle Osacenco and paralegal Anna Kovtanuka are all scheduled to appear in court on March 17, 2016.


 
Chinese insurer to acquire US hotels portfolio
China’s Anbang Insurance Group Co. is in talks to acquire a portfolio of luxury hotels from Blackstone Group. The insurer is already the owner of New York’s iconic Waldorf Hotel and has a wide range of investments in the US and Europe. The Wall Street Journal reports that Anbang has grown from a provincial auto insurance firm into a global owner of property and insurance assets.