OECD GLOBAL INSURANCE STATISTICS: PRELIMINARY RESULTS FROM THE DATA COLLECTION EXERCISE FOR ASSAL MEMBERS AND THE WAY FORWARD Jean-Marc Salou Financial Affairs Division Directorate for Financial and Enterprise Affairs OECD, Paris. OECD-Latin America Seminar on enhancing transparency and monitoring of insurance markets Montevideo, Uruguay September 2013.

Questionnaire administration Two documents to be returned before 30 May 2013: Electronic Excel questionnaire (Sections 1.1 to 1.4) Qualitative word questionnaire (Section 1.5) Full questionnaire to be received by 3 October 2013, including: Sections 2.1 to 2.14 Any updates or/and revisions from Sections 1.1 to 1.4 Section methodological notes by 1 November Provision of unaudited and/or estimated data is encouraged when data are not available

In Latin America: 1st Joint Seminar on Insurance Statistics in Latin America with ASSAL (Asociación de Supervisores de Seguros de América Latina), September 2013 in Montevideo, Uruguay Level of participation 3 Overall, electronic questionnaires sent to 59 OECD and non- OECD countries, Excel questionnaires with 2012 data received so far for: 19/34 OECD countries 13/25 non-OECD key partners, of which:  1/7 Asian key partners  12/17 ASSAL key partners Qualitative information was in most cases provided with Excel questionnaire

Data completeness can impede data comparability 4 Data completeness of Section 1.2, about Business Written in the Reporting Country (by selected classes of life insurance), in Latin america, 2012

Core outputs “Insurance Statistics Yearbook: Edition 2013” (to be released in December) and a CD-ROM; The OECD Global Insurance Market Trends (to be released in October) Contribution to an OECD G20 report on Long Term Investments (initial work to start in October) A one-stop statistics where historical data series presenting comparable statistics and indicators can be retrieved easily: 5

All range of insurance statistics Direct access: 6

Examining potential sources of discrepancies that can jeopardize data comparability Check the valuation method used at national level across countries (i.e., mark-to-market vs. book value) and accounting standards (business vs. national accounting) Identify where different compilation methods apply across countries, such as the look-through of certain instruments (e.g., mutual funds) across other asset classes Timeliness (e.g., time lag calendar vs. fiscal year) Sourcing (e.g., entire population of insurance undertakings vs. sample, primary vs. secondary sources) Inclusion or exclusion of the business of branches and agencies of domestic insurance companies located abroad 7

Examining potential sources of discrepancies that can jeopardize data comparability (Cont.) Inclusion or exclusion of reinsurance in submitted data –Premiums ceded by direct business are not available in some countries. Instead total premiums (reinsurance + retrocession) are provided. This might generate a double counting problem for users interested in direct cession rates. –This is why it is very important to have both Premiums Ceded by Direct Insurers and Premiums Ceded by Reinsurers (reinsurance and retrocession) as separate series P Premium, P, ceded by the direct insurer Reinsurer retrocedes a part of this premium Reinsurance Retrocession 8

Preliminary list of follow-up actions to the Seminar Liaise bilaterally with countries that did not send back the questionnaire yet Follow-up with countries in order to check outliers and further explain trends Finalise the report “Stocktaking and Comparative Assessment of Insurance Statistics in Selected Latin American Countries: Preliminary Findings” Circulate a list of future outputs and possible contributions for planning purposes 9

SELECTED CHARTS BASED ON PRELIMINARY FIGURES 10

Annual real gross premium growth: Life sector ( ) In percent 11

Annual real gross premium growth: Non-life sector ( ) In percent 12

Growth in gross claim payments: Non-Life sector ( ) 13

Combined ratio ( ) 14

Investment portfolio allocation: Life insurers (2012) As a percentage of total investments 15

Investment portfolio allocation: Non-life insurers (2012) As a percentage of total investments 16

Investment portfolio allocation: Composite insurers (2012) As a percentage of total investments 17

THANK YOU 18