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10th September 2017

Newslink Global Insurance Trends

As the annual Monte Carlo Rendezvous begins, the Atlantic hurricane season is in full swing, with Hurricane Harvey rapidly followed by Irma which is about to hit Florida as we write-insurers, reinsurers, and ILS are in for a major pounding. Air Worldwide and CoreLogic provide latest estimates of potential insured losses.
This week, the latest Swiss Re sigma report looked at the growing role of insurance in emerging markets. Standard & Poor's reports highlighted the lowering of returns compared to the cost of capital in the reinsurance sector, and that global P&C reinsurers face continued market pressure. The Willis Reinsurance Index showed that dividends and share buybacks exceeded net income in the first half of the year. Aon Benfield launched its latest report on the ILS sector-a new record for quarterly issuance. BDO published a white paper headed "Cyber insurance: managing the risk" profiling some of the positive trends around cyber security, whilst a Willis Re report looked at "silent cyber" exposure potential losses.
There was a huge sigh of relief across the UK and London Market as the Ministry of Justice indicated it is to change the method of assessing the Ogden Discount Rate, making company first half results better and likely to result in a lowering of motor insurance premiums. The Financial Conduct Authority(FCA) is continuing its investigations into five life insurers, and Insurance Europe responded to the International Association of Insurance Supervisors(IAIS) consultation on the revision to Insurance Core Principles(ICP).
The world’s first blockchain platform for the marine insurance sector was launched. Guidewire improved across all key financials for the fiscal year, and Texas Mutual successfully deployed additional Guidewire solutions. Advent Claims entered into a partnership arrangement with Lloyd’s broker Endeavour Insurance Services to support London Market coverholders operating in Canada, and StarStone launched its online broker platform ESCAPE I-2-3. Charles Taylor is to acquire a Southern California TPA, and JBA's probabilistic flood models are to be integrated onto the Boat Oasis platform. SSP and Legal & General partnered to launch SmartQuote to streamline the purchase of home insurance.
Allianz headed the Dow Jones Sustainability Index(DJSI), and Helvetia improved all around in the first half. Lockton created a unique ‘interlocking’ insurance product for the UK legal sector that combines both cyber and crime cover with compulsory PII in one policy, and Gallagher acquired in Sweden. Aquila Underwriting formed Beluga Insurance Services in Belgium, Compre continued on the acquisition path, Markel International is to acquire ECIC in the UK, and Tokio Marine is to set up a new insurer in Luxembourg with Brexit in mind. Randal & Quilter produced "a very strong performance" in the first half. SCOR reported strategic progress at its annual Investor Day, and is continuing to develop its sustainability practices in both investing and underwriting. BMS Iberia was launched and Ed was granted a commercial insurance intermediary license by the Guernsey Financial Services Commission. There were senior appointments at Direct Line, Marsh(in connection with a global management restructure), XL Catlin, and Willis Towers Watson.
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global trends database services last Wednesday and today at www.onlystrategic.com-featuring advanced structured search and report facilities and a free 14 day full trial.