China's Fund Managers Shift to Bonds

CHINA'S BOND MARKET
1.Chinese government has succeeded in getting funding to higher risk sectors by relaxing bond approvals.

2. Regulators began allowing unlisted companies to issue bonds on public exchanges.

3. Chinese bonds' higher yields are appealing given the lack of options in Europe or other developed bond markets.

4. Over 40% of the bonds outstanding mature in less than three years. This is in contrast to elsewhere in the world.

Life Insurance Policy Admin Moving Forward

INSURANCE VALUE CHAIN
1. Insurance operations can be broadly divided into three core elements.

2. They are Front office, Policy Administration & Underwriting, and Claims Processing & Payout


KEY IDEAS
1. Ideas towards driving changes in policy administration and underwriting function are:

2. Switching of business process outsourcing (BPO) for closed-book operations.

3. Enhanced use of business intelligence (BI) and analytics for underwriting.

4. Increasing adoption of self-service for policy servicing.

Understanding Longevity Risks

1. Countries with pensions freedoms that enables pensioners to spend their retirement savings as they wish is a ticking time bomb. 

2. Longevity risk is not “well understood” and it has “significant implications” for retirement income.

3. Pensioners living above their life expectancy will cause a strain in the retirement system resulting in a "time-bomb" 

4. The UK’s IFoA, the American Academy of Actuaries and the Actuaries Institute Australia joined forces to compare retirement income systems in their three countries and highlighted five principles.

[Misconduct] Financial Reinsurance Product Fraud

REINSURANCE FRADULANT ACCOUNTING PRACTICES
1. in 2010,Gen Re agreed to pay $US31.7 million ($35m) to settle charges brought by the US Securities and Exchange Commission for its role in fraudulent accounting practices in 2000 and 2001 at insurers American International Group and Prudential Financial.