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4th March 2018

Newslink Global Insurance Trends

This week, Brexit stayed in the headlines-the latest membership survey from the Chartered Insurance Institute(CII)indicated that the insurance profession were almost split down the middle when choosing between positioning the sector as an international financial centre with lighter touch regulation and supervision or remaining close or ‘equivalent’ to the EU. Later on Friday, The UK Prime Minister Theresa May revealed the latest Brexit positioning and without going into detail, she said that passporting will end as it is intrinsic to the Single Market that the UK is leaving, and that the City of London cannot simply become a ‘rule taker’ without having a say in how future regulations are shaped. The CII welcomed this comment and said that they were also encouraged by the Prime Minister’s determination that financial services must be part of the trade agreement with the EU on terms broader ‘than ever before’-the Chancellor will make a more detailed statement on Brexit and financial services next week. The ABI Director General implored the Government to agree a "straightforward" transitional Brexit period soonest.
Prudential Regulatory Authority(PRA) ceo Sam Woods outlined progress and priorities in a key speech at the ABI Annual Conference, with particular emphasis on Solvency II-the ABI commented later in the week on the PRA response to the Treasury Select Committee inquiry on Solvency II. The Financial Conduct Authority(FCA) published its second set of data in its general insurance value measures pilot. Insurance Europe released a paper on the European Commission’s position regarding the review of the European Supervisory Authorities(ESAs) with particular reference to EIOPA.
Argo Pro is to partner with eBaoTech Corporation to streamline its core insurance processes, and Verisk launched EPIX, a benchmarking and risk-scoring platform that can significantly enhance how insurers research, assess, and underwrite complex energy risks. RMS appointed Karen White as its new ceo.
MassMutual International is to sell 85.1% of MassMutual Japan to Nippon Life, and Zurich is to acquire the operations of QBE Insurance Group in Latin America-QBE confirmed a record catastrophe net claims cost in the second half of 2017 of $1,227m. Liberty Mutual announced the operating structure for its newly-formed Global Risk Solutions, and Pool Re renewed its retro programme and extended the cover to include material damage and direct business interruption(BI) caused by acts of terrorism using remote digital interference.
2017 results continued to be announced-they included Admiral(strong revenue and before-tax profit growth), Direct Line(fifth successive successful year), and Hastings Group(another year of impressive growth and operating profit), AIA(continues growth and profitability), St. James's Place(record gross inflows), and Liberty Mutual(net income of $17m compares with $1bn in 2016), Enstar(net earnings up), Hiscox(profit down after "historic year for natural catastrophes" but balanced strategy and rate increases provide optimism), QIC(strong operational performance-increase in capital approved), and JLT(strong 2017 and strategic developments initiated).
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, report facilities, and a free 14 day full trial.