CEO of Fins Brokers LLC, Goodwill Ambassador of the Chartered Insurance Institute is going to deliver a webinar on the topic of "Natural perils in Mongolia and Human contribution to the severity of the flood losses in Ulaanbaatar" on December 8, 2023 at 14:00 in respect to the Chartered Insurance Institute's webinar for Asia-Pacific region. In this webinar, the speaker, Budmaa Tsend will bring you insights to learn about the natural perils present to Mongolia.

Fins Brokers organizes annual training sessions for its treaty reinsurance clients as a way of adding value to our esteemed clients. This year our training has been announced on the topic of “Underwriting strategy”.
Underwriting is an important and core operation of an insurance company which assesses risk of an insured, determines whether to accept the risk and, if so, on what terms.
The training will be conducted for senior management, board of directors and underwriters.
Through this training, we aim to provide our clients with benefits such as linking operations of the underwriting unit to the company’s vision and other high-level objectives, eliminating duplication by analyzing value chain, capital efficiency, linking incentive system to underwriting performance and discovering innovative ideas that can be introduced to the local market.

Fins Brokers organized training webinar on June 30, 2022 on "Handling Multinational Insurance Programs" topic for its treaty reinsurance clients as part of our annual training service for our clients. Multinational insurance program has its own features in the sense that it is a distinctive form of reinsurance, and with the development of Mongolian economy and the increase in number of branches of multinational companies, it has become interesting topic that insurance companies are paying attention to. With over 12 years of experience, Fins Brokers aimed to provide practical know-how to successfully overcome the risks and opportunities arising from handling of local accounts. More than 30 insurance professionals, including reinsurance, risk, underwriting, and product development departments of client insurance companies, as well as insurance managers and compliance officers, joined the webinar virtually.

Local market characteristics such as direct (insurer dominated), prolonged soft and reinsurance capacity dependent led Mongolian insurance market to enter into market collaboration infrastructure recently. A new digital platform has been launched and is designed to sharing of risks (co-insurance), exchanging risks and allows opportunity for local insurers to cede risks to international markets.

Mongolian insurance market is relatively young market and developing since 1990. With 15 non-life insurers, 1 reinsurer and 1 life insurer, local brokers entered into the market a decade later and currently accounts 26% of total GWP.

After any major event in the history of the world, countries make significant transitions and changes. When a widespread, unfamiliar, or not fully understood event occurs the social and economic sectors need to take certain measures faster than usual. For example, one of the exclusions in current contracts of insurance in Mongolia - “No reimbursement for any losses or damage arising from terrorism” clause, was the result of the September 11, 2001, terrorist attack to the World Trade Center. Following the massive damage, the London insurance market reacted immediately, eliminating the terrorism coverage from all non-life insurance contracts in the UK and started providing such protection only to interested parties in a controlled and calculated manner.

Insurance industry in Mongolia is currently facing a shift towards simplified Solvency II regime by leaving behind its conventional control regime. Since January 2019 new regulations on “Risk based capital approach”, “Procedure on risk based control and supervision for insurer’s operation”, “Guidelines on own risk and solvency assessment of the insurer” fall full in force which were approved by Financial Regulatory Commission of Mongolia with the resolution #290, dated 19th of December 2018.

The number of countries in which flood events were reported in EM-DAT was less than 50 until mid-1980, reaching around 80 after 2000. Between 1960 and 2013, value of reported economic losses showing increasing trend (6.3 percent per year) (Masahiro Tanoue, Yukiko Hirabayashi, Hiroaki Ikeuch, ‘Global Scale river flood vulnerability in the last 50 years’, 2016).

For Mongolia, National Statistics Organization statistics shows intense rain and flood frequency has also been increasing each year and according to National Emergency Agency data, the flood peril is the second most frequent peril to Ulaanbaatar, the capital city of Mongolia.

The driverless car subject may seem as one of the most recent topics in our lifetime, the impact of this impending change to our lives is substantial. Lately the number of projects which aim to manufacture driverless vehicles are increasing and sectors that are exposed under this challenge such as traditional vehicle makers, insurance industry and regulatory authorities are discussing and preparing to adjust before driverless vehicles become reality on the road at mass level.