Magazine date:
Dec 2011 According to A.M. Best the supervisory authorities will soon make amendments to insurance legislation. Changes will be relative to the introduction of a minimum share capital, the enforcement of solvency rules on all insurers and the elaboration of a license system. In the current context, many insurers not able to meet the new criteria imposed by the government.
The rating agency predicts that these measures coupled with reinsurance rising costs will trigger a series of mergers. Three quarters of the non-life insurance market are controlled by five companies: Insurance Australia Group, Vero Insurance New Zealand, AMI Insurance, Lumley General Insurance and Tower Insurance.