Latest news with #insurers
Bloomberg
a day ago
- Business
- Bloomberg
Taiwan Dollar Option Trade Slump Lifts Insurers' Hedging Costs
Gyrations in the Taiwanese dollar have dented appetite for trading its derivatives in offshore markets, making it costlier for the island's insurers to hedge their massive dollar assets. Weekly derivatives transactions involving the currency slumped to the lowest since at least 2021 for this time of the year, according to one measure using data from DTCC Data Repository Singapore.
Yahoo
3 days ago
- Business
- Yahoo
US insurers' profits double as price rises exceed extreme weather claims
US property and casualty insurers nearly doubled their earnings between 2023 and last year despite costly extreme-weather events, according
Globe and Mail
3 days ago
- Business
- Globe and Mail
Ontario considers rule to limit exclusivity deals between insurers and pharmacies
The Ontario government is considering a new regulatory rule that would allow patients to access any pharmacy of their choice through a mandatory exemption – even if their private insurer has signed an exclusive agreement with a preferred pharmacy. The proposed rule is one of two options the Ontario government is seeking feedback on as part of its second public consultation looking at whether new regulations are needed to limit exclusivity deals between insurers and pharmacies, called preferred pharmacy (or provider) networks (PPNs). Insurers and some pharmacies argue the deals can lessen costs and guarantee certain service standards, while other pharmacies and patient advocates argue the agreements inappropriately constrain patient choice and could lead to poorer health outcomes. A second option the government is considering more closely is what it calls an 'any-able-and-willing-provider' (AAWP) model, which would require insurers to allow a wide range of health care providers into their networks. An 'any-willing-provider' measure would essentially end what are called 'closed' PPNs, in which patients can only get medication reimbursed if it comes from specific pharmacies that have deals with their insurance company. An 'open' PPN allows more pharmacies to join these networks if they can show they can meet certain quality and pricing standards. Ontario to launch new consultation on restricting exclusive deals between pharmacies and insurers During last year's initial consultation, the Ministry of Finance conducted 11 stakeholder roundtables and received 178 independent submissions. After reviewing the information, the government said it found that pharmacy PPNs 'may increase access' to specialty medications by 'enabling affordable coverage,' as well as 'significantly reduce' pharmacy mark-ups, from 15 per cent to 10 per cent, for example. The government also heard that, if employers and insurers are not able to utilize pharmacy PPNs to keep costs 'at bay,' employers may choose to reduce coverage or cut benefits altogether. When reviewing whether PPNs have any effects on competition, the ministry said it heard that they are 'not the only such arrangement' that may affect competition. Patient Support Programs, known as PSPs, are also arrangements where drug price and access are negotiated. The government also heard that vertical integration between insurers, pharmacy benefit managers and pharmacy operators may pose a risk to competition. The alternative option of introducing a standardized and mandatory exemption rule could also promote consumer choice, the government said, by limiting the circumstances in which a PPN may require or incentivize a patient to use a preferred pharmacy. Currently, PPNs may include a process for patients to request an exemption so they can access prescriptions at pharmacies outside of the network. However, these processes are not standardized across the industry and are at the insurer's discretion. Access to medication is increasingly being dictated by preferred pharmacy networks If introduced, an exemption rule would be standardized and mandated by statute, regulations and rules. Examples of a qualifying exemption would be medical, geographical or accessibility reasons. Karen Leiva, spokesperson for the Canadian Life and Health Insurance Association, said the association has long held the view that PPNs are an important tool for the industry. 'PPNs help to ensure that Canadians who need life-saving medication and other supports can receive them,' she said in an e-mail. Justin Bates, chief executive officer of the Ontario Pharmacists Association, said he is encouraged to see a form of 'any-willing-provider' legislation being explored as part of the second consultation. However, Mr. Bates also said that because this type of legislation would not be a blanket ban on PPNs, it could leave open the possibility that insurers create PPNs that are open in name only – because the terms of joining are so restrictive they exclude some pharmacies that find the requirements too onerous or expensive. The government's addition of the word 'able' to make the phrase 'any-able-and-willing-provider' has raised some eyebrows. Quinn Grundy, a professor at the University of Toronto who researches the pharmaceutical industry, said the use of the word 'able,' along with a mention of smaller pharmacies not necessarily having the right equipment to handle specialty drugs, was a red herring. 'I actually don't think that is the issue at all,' Prof. Grundy said. 'Everyone can get a fridge. These drugs are within any pharmacist's scope of practice to dispense. I think the question around able is whether they can afford to provide those services at the price that the insurer is willing to reimburse.' Mike Nashat, a pharmacist and director of OnPharm-United, a network of more than 600 independent pharmacies, said that competency standards should be set by regulators, not by parties to an agreement. 'We're increasingly concerned that the word 'able' will be used as a loophole to justify excluding qualified pharmacies from networks for commercial, not clinical or competency, reasons,' he said. PPNs do allow insurers to contain costs and ensure standards, said Chris Bonnett, a consultant on drug policy and private health insurance – but to work long-term, all parties must benefit. 'That means the terms have to ensure a viable market, be clear and transparent, and be monitored so that overall, everyone is better off,' he said. The Finance Minister's office declined to respond to questions about the consultation, which runs until July 28.
Bloomberg
6 days ago
- Business
- Bloomberg
Taiwan Considers Easing Rules for Insurers After Currency Swings
Taiwanese insurers are facing difficult questions about the damage of recent swings in the local currency. Regulators may have a partial solution: letting firms change how they calculate the value of foreign currency assets. The island's financial regulator is considering allowing insurers to use six-month average exchange rates when they calculate risk-based capital in their semi-annual reports, a shift from the current system where insurers use exchange rates on the final day of reporting.
Japan Times
27-05-2025
- Business
- Japan Times
Dai-Ichi Life sees falling volatility in JGB market
The surging bond yields that have saddled Japan's insurers with billions of dollars in unrealized losses will weaken because they are not supported by economic fundamentals, according to Dai-ichi Life, the country's largest listed life insurer. New buyers are entering the market for Japanese government bonds and amplifying volatility, Chief Executive Officer Tetsuya Kikuta said in an interview. Yields on 30-year JGBs jumped to a record last week. This is eroding the value of the bonds already in the insurers' portfolio. Dai-ichi's paper losses on its domestic bonds stood at about ¥2 trillion ($14 billion) as of the end of March. A rout in Japan's $7.8 trillion government bond market has spooked several firms including Nippon Life Insurance and Norinchukin Bank. The Bank of Japan is paring its holdings in the face of emerging inflation, sparking a selloff in the country's long-term debt. The current run-up in yields is a stark reversal for the companies, which until just a year ago had been suffering diminishing returns from domestic investments and desperately seeking more attractive assets overseas. "There are a very limited number of long-only JGB investors and they are being replaced by short-term players,' Kikuta said. "That's pushing up the JGB market's volatility.' While yields could jump further in the near future because of a lack of liquidity, the JGB market will likely calm down around the end of the year, Kikuta said. Swap rates are roughly 60-125 basis points lower than comparable JGB yields. "Japan's potential economic growth rate is less than 1%. And inflation only affects shorter-term interest rates. So, fundamentally, I don't think long-term rates should be where they are now,' said Kikuta. "They are just overshooting temporarily, due partly to supply and demand.' Yields on Japanese super-long bonds fell ahead of an auction Wednesday that is expected to test demand following a recent sale that sent jitters through global markets. Yields on 40-year and 30-year maturities slid 10 basis points in Tokyo on Tuesday, adding to drops in recent days. These moves followed sharp gains last week. Dai-ichi's domestic insurance unit owns ¥16.6 trillion worth of JGBs and municipal bonds as of the end of March, and more than half of the holdings have maturities of over 20 years. Japan's life insurers have traditionally been the main buyers of JGBs with maturities as long as 40 years to cover obligations spanning decades for insurance policyholders. Recently, hedge funds have been increasing their trading of Japanese bond futures and yen rate swaps. Paper losses do not pose an immediate risk to the insurers and under a new rule, higher interest rates push down the value of both assets and liabilities and do not affect a regulatory gauge of fiscal soundness. While the current yields are already "very attractive,' the insurer now has little room to buy fresh JGBs, as it is almost done with a regulation-driven buildup, Kikuta said. The company will keep replacing lower-yielding bonds with higher ones, he added. The company is pulling back on foreign bonds with currency hedging, which were one of the mainstays for insurers during Japan's period of low interest rates. The company is also cautious on buying foreign bonds without currency hedging, given the risks of a stronger yen in the future. "The need has shrank a lot for foreign bond investment as a replacement for yen-interest assets,' Kikuta said, adding high hedging costs make it hard to justify them. "Things which were unthinkable just a short while ago are happening now,' he said. Dai-ichi has been aggressively expanding beyond traditional life insurance in Japan and focusing on asset management as one of its growth areas. Earlier this month, the company said it plans to acquire an additional stake in U.K.-based Capula Investment Management. Dai-ichi is looking for further opportunities to invest in alternative fund management firms and can start looking at deals worth several billion dollars in the asset management industry once it completes current efforts to boost capital efficiency, Kikuta said. "We still lack scale in asset management,' he said.
