Of Special Interest


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21st June 2020

Newslink Global Insurance Trends-Editor's Weekly Overview

This week, Fitch Ratings took negative rating actions on 34% of rated EMEA insurance groups(including reinsurers) as a result of the portfolio review it carried out between 19th March and 2nd June 2020 in light of the coronavirus pandemic. The Prudential Regulatory Authority(PRA) issued a letter to participants in the Insurance Stress Test 2019 and COVID-19 stress testing outlining feedback. The latest Swiss Re sigma study indicated that infrastructure investment will be a key driver of growth in emerging markets post COVID-19 crisis-the study estimared that infrastructure-related insurance premiums will exceed $50bn over 10 years, mostly from engineering, property and energy. Emerging markets will invest $2.2tr in infrastructure annually over the next 20 years, equal to 3.9% of gross domestic product(GDP), according to estimates in the report. The energy sector, in particular renewable energy, smart and resilient infrastructure, and healthcare facilities are expected to attract strong investment. The sigma estimates that emerging market infrastructure represents an annual investment opportunity of $920bn for long-term investors, including insurers. The construction and operational phases of infrastructure projects will also generate new demand for insurance solutions, with engineering, property and energy lines of business set to benefit most. Infrastructure-related insurance premiums will exceed $50bn over 10 years, mostly from engineering, property and energy.
LCP’s analysis of the early Solvency II disclosures of 50 insurers across the UK and Ireland, has found a big change in the risks which most concern the industry. 30% of insurers identified Brexit is a key risk, down from 60% last year, while climate change and cyber risk are both seen as rising priority areas. 52% see cyber security as a key risk, up from 46% last year, while 46% of firms cited climate change, significantly up from 18% last year. GlobalData said that the COVID-19 impact would hit UK home insurers as disposable income will decline, and also reported on the UK commercial property market and the pandemic's impact on insurer's investment income. Beach announced the publication of its 2020 Pre-Season Hurricane Outlook report, and the MIB Life Index indicated that US life application activity was up 5.2% following a decline.
Ageas Seguros went live with Duck Creek Policy, Billing, and Data Hub solutions. Guidewire said it was reimaging its insurance core platforms with the release of Aspen, and Foresight Risk & Insurance selected Majesco Policy and Billing for P&C, Majesco Digital1st Insurance, and Majesco CloudInsurer. Swiss Re Corporate Solutions announced a collaboration with Finnish insurer LocalTapiola to deliver a International Programme Administration(IPA) platform and Network Services. A Juniper Research study indicated that the number of businesses using asset tracking solutions will reach 90 million this year and exceed 114 million by 2025.
Athene Life Re is to invest $500m in Prudential plc’s US business in return for an 11.1% economic interest. China Pacific launched a London listing to raise up to $2.15bn, whilst Lloyd's released a statement relating to the past connection with the slave trade. Fidelis closed an offering of $300m aggregate principal amount of 4.875% Senior Notes due 2030-soon after raising a further $500m of equity capital earlier in the month. The Bermuda International Long Term Insurers and Reinsurers(BILTIR) was accepted as a member of the Global Federation of Insurance Associations(GFIA). There were senior appointments at The Geneva Association, Charles Taylor, HDI, Hiscox, and Swiss Re.

Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Research Matrix service at www.onlystrategic.com
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