After a sharp decrease in demand for insurance this year due to the impact of the COVID-19 pandemic, the insurance industry's premium volume will recover to prepandemic levels in 2021, according to a new sigma report from the Swiss Re Institute.
Researchers at Colorado State University have updated their 2020 Atlantic hurricane season forecast, increasing their projection for named storms this season by 1 to a total of 20. The Colorado State team forecast continues to project 9 hurricanes this season, including 4 major hurricanes of Category 3 or greater.
AXA XL has named Sean McGovern CEO UK & Lloyd's market subject to regulatory approval. Mr. McGovern had been performing the role on an interim basis.
COVID-19 is adding to the challenges of Florida property insurers, who were already dealing with higher reinsurance pricing and social inflation.
The COVID-19 pandemic could curb insurers' premium and investment growth in 2020, according to a report from the Organization for Economic Cooperation and Development (OECD). The pandemic will have various impacts on insurance companies including changing demand for policies and changes in insurers' claims experience.
A recent survey of European risk managers reveals that risk management trends, such as digital transformation and the use of captive insurance, may be accelerated by the COVID-19 pandemic, some believe. The Federation of European Risk Management Associations "2020 European Risk Manager Report" collected data from 764 risk managers.
Airmic, the UK association for risk and insurance professionals, has voiced support for a framework Lloyd's of London released last week for covering business interruption caused by the COVID-19 pandemic and losses from future pandemics and systemic catastrophes.
Any benefits US commercial insurers realize from sharp premium increases will likely be delayed by the impact of the COVID-19 pandemic and related economic fallout on underwriting results, according to Fitch Ratings. Uncertain underwriting performance resulting from the pandemic will likely extend into 2021.
Citing the impact of the COVID-19 pandemic, the North Carolina Captive Insurance Association (NCCIA) has canceled its upcoming annual conference. The conference, originally scheduled for May, was earlier rescheduled to August 30–September 2, 2020, at the Washington Duke Inn in Durham, North Carolina.
Lloyd's of London has proposed potential solutions for business interruptions resulting from government-ordered shutdowns due to pandemics or other crises, including open-source frameworks for addressing systemic catastrophic events. The solutions and frameworks include two frameworks that would require government/(re)insurance industry partnerships.
Captive insurance companies may serve as valuable tools for many organizations addressing pandemic-related risks in the wake of COVID-19, but regulators will closely scrutinize captives' pandemic coverage plans. Policy language, triggering events, coverage details, and reinsurance will be key considerations.
The 2020 Bermuda Captive Conference will be held as a virtual event due to continued uncertainty surrounding the COVID-19 pandemic. The online event, which had earlier been rescheduled from June to September as an in-person event, will take place September 9–11.
A survey of European risk managers shows a growing number of companies looking to captive insurance as an alternative to a hardening insurance market. The European Risk Manager Report 2020, conducted by the Federation of European Risk Management Associations (FERMA), found 43 percent of respondents indicating they are considering using captives.
Guy Carpenter said the COVID-19 pandemic looks to rank among the insurance and reinsurance sector's most expensive events, contributing to total 2020 catastrophe losses ranging from $100 billion up to $160 billion. The pandemic also could be one of the slowest developing catastrophes insurers and reinsurers have experienced.
The Guernsey International Insurance Association (GIIA) has signed on to a United Nations (UN) green program as part of its commitment to developing green and sustainable finance. The GIIA is now a supporting institution of the United Nations' Principles for Sustainable Insurance Initiative.
Don't miss the July issue of "Captive Insurance Company Reports" ("CICR"), which explores the benefits of digital transformation to the captive insurance industry and the timeliness of the need to bring stakeholders together and implement technology-enabled solutions.
Due to concerns about the COVID-19 pandemic, the Kentucky Captive Association has converted its annual conference to a virtual event. The conference, which had been originally scheduled for September at the Northern Kentucky Convention Center in Covington, will now be held online August 20.
The National Association of Insurance Commissioners (NAIC) has released its first update on the state insurance regulatory response to COVID-19, noting the pandemic's impact on the NAIC's 2020 regulatory and operational priorities. The report says that state insurance regulators and the NAIC have been closely monitoring insurers' financial health.
Catastrophe bond and insurance-linked securities issuance continued at a brisk pace over the past month, according to Artemis, with 2020 issuance approaching $8.25 billion. The Artemis Catastrophe Bond & Insurance-Linked Securities Deal Directory showed the issuance of just over $1 billion in new cat bonds over the past month.
Fitch Ratings says a review of the COVID-19 pandemic's impact on global insurance sector ratings found that the rate of negative outcomes highlights the industry's resilience going into the pandemic. The rating agency defined "negative outcomes" as the combination of negative outlooks, negative watches, and downgrades.