Industry News

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AIR Estimates Hurricane Sally Insured Losses at Up to $3 Billion

Catastrophe risk modeling firm AIR Worldwide estimates that Hurricane Sally caused $1 billion to $3 billion in insured onshore property losses as a result of wind, storm surge, and inland flood. Wind was responsible for the majority of the losses, AIR said.
September 24, 2020 Read More
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October "CICR" Explores D&O Liability, Captive Taxes, COVID-19

Don't miss the October issue of "Captive Insurance Company Reports" ("CICR"), in which John Thomson, editor, provides an insightful commentary on the continued hardening of the market, the interminable COVID-19 pandemic, and the Vermont Captive Insurance Association's first-ever virtual conference.
September 24, 2020 Read More
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In Challenging Times, a Captive Can Provide Balance Sheet Protection

As they deal with the COVID-19 pandemic and the accompanying economic downturn, investment market volatility, and a hardening insurance market, organizations can look to their captive insurance companies to help protect their balance sheets. The captive can open up opportunities for the parent company to retain risk more economically.
September 23, 2020 Read More
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Captives Will Step in If Insurers Label Pandemics "Uninsurable"

Commercial insurance companies should not be surprised to see buyers reduce their premium spending across lines if they continue to tap out of difficult-to-insure risks like pandemics, Zach Finn, clinical professor of risk management and insurance at Butler University, tells Richard Cutcher in episode 38 of the Global Captive Podcast.
September 23, 2020 Read More
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DC Captive Group To Present Annual Conference Online October 27

The Captive Insurance Council of the District of Columbia Inc. has rescheduled its annual conference for October 27. The new conference, unlike the originally planned May conference that was canceled in late March due to the COVID-19 pandemic, will be held online.
September 22, 2020 Read More
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Fitch Removes Lloyd's from Rating Watch Negative, Affirms AA- Rating

Fitch Ratings has affirmed Lloyd's of London's insurer financial strength (IFS) rating at AA- (very strong) and removed Lloyd's from Rating Watch Negative. Fitch's outlook for Lloyd's is stable. The affirmation of the AA- IFS rating primarily reflects Lloyd's very strong business profile and capitalization and leverage, Fitch said.
September 22, 2020 Read More
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Survey Finds Market Conditions Leading to More Captive Formations

Amid tightening conditions in the commercial insurance market, more organizations are forming captive insurance companies, according to a new Marsh LLC survey. That increase in captive formations comes amid a surge in the amount of business funded in 2019 through captives.
September 21, 2020 Read More
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Report Cites Importance of Insurance in Natural Disaster Recovery

The average annual losses from natural catastrophes have increased dramatically in recent years, but the increased amounts of insurance penetration can have a dramatic impact on recovery time. A new report notes that average annual catastrophe losses rose from $27 billion in 1970–1980 to nearly $200 billion in 2010–2020.
September 18, 2020 Read More
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Industry Well-Capitalized for Catastrophes but Further Price Hikes Likely

A new report from Kroll Bond Rating Agency suggests that the (re)insurance industry remains sufficiently capitalized and is generally well-positioned to manage through current catastrophes, including hurricanes, wildfires, and the COVID-19 pandemic. The continuing increase in hurricanes' severity will lead to another year of high catastrophe losses for insurance companies.
September 18, 2020 Read More
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Haiti Receives Payout from CCRIF SPC for Tropical Cyclone Laura Losses

The government of Haiti has received a payout of approximately $7.2 million from the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) on its excess rainfall parametric insurance policy. The payout is related to 3 days of heavy rainfall associated with Tropical Cyclone Laura.
September 17, 2020 Read More
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Willis Survey Shows Record Quarterly Commercial Lines Price Increases

Willis Towers Watson says US property-casualty insurance prices experienced the largest quarterly increase in its pricing survey's history during the second quarter. Willis Towers Watson's Commercial Lines Pricing Survey found prices increased almost 10 percent in the second quarter compared to prices during the same period in 2019.
September 16, 2020 Read More
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Insurance, Business Leaders Address Federal Pandemic Backstop Issue

Insurance industry representatives joined business stakeholders last week in addressing the need for a federal solution to addressing pandemic risks during a roundtable discussion hosted by the sponsor of federal pandemic risk backstop legislation. Rep. Carolyn B. Maloney (D-NY) sponsored HR 7011, the Pandemic Risk Insurance Act.
September 15, 2020 Read More

Strategic Risk Solutions To Acquire Dyna Management Services

Strategic Risk Solutions (SRS) has reached an agreement to acquire Bermuda-based Dyna Management Services Ltd., an independently owned insurance management company. All members of Dyna's staff will remain with the firm, including Terence Power, the current CEO, president, and founder of Dyna, who will join the board of SRS International.
September 14, 2020 Read More
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Bermuda Captive Conference Panel Sees Differences in this Hard Market

The current hard insurance market is markedly different from previous hard markets, with its basis in trends that have been developing for years, according to one panel of experts. On top of the hard insurance market, both buyers and insurers are dealing with operational issues related to the COVID-19 pandemic.
September 11, 2020 Read More
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Most Commercial Lines Experienced Premium Increases in August

All commercial insurance lines except workers compensation experienced increases in year-over-year average premium renewal rates in August, according to the August IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service. Workers compensation saw a negative change in premium renewal rate year-over-year.
September 10, 2020 Read More
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Low Interest Rates, Large Losses Will Drive Further Market Hardening

Swiss Re expects further price hardening across all lines of business, while the reliance on underwriting will increase in the low-interest-rate environment. In a statement, Swiss Re also said it expects more opportunities for re/insurers due to a combination of improving insurance demand and growing exposures.
September 09, 2020 Read More
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Bermuda Captive Conference Waiving Fee for 2020 Virtual Event

Thanks to support from its industry sponsors, the Bermuda Captive Conference is waiving the fee for the virtual event, making it free for attendees. Conference organizers announced earlier this year that the event, scheduled for September 9–11, would be conducted virtually due to continued uncertainty surrounding the COVID-19 pandemic.
September 04, 2020 Read More
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Triple-I Paper Links Rising Hurricane Costs to More Coastal Building

US hurricane seasons are becoming more expensive because more Americans are living in coastal states, according to a new white paper from the Insurance Information Institute (Triple-I). The white paper says that repairing and replacing sizable wind-damaged homes are among the reasons insured loss payout figures continue to climb after hurricanes.
September 03, 2020 Read More
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AIR Worldwide Sets Laura Insured Losses at $4 billion to $8 billion

Industry insured losses to onshore property as a result of Hurricane Laura will range from $4 billion to $8 billion, according to catastrophe risk modeling firm AIR Worldwide. Hurricane Laura made landfall near Cameron, Louisiana, close to the Texas border, on August 27, 2020, as a strong Category 4 storm.
September 02, 2020 Read More
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Insurers' Capital Positions Should Withstand Hurricane Laura Losses

While the economic and insured losses form Hurricane Laura will be significant, the catastrophe is unlikely to prompt downgrades of individual property-casualty insurers or reinsurers, according to Fitch Ratings. Fitch said that Hurricane Laura will likely be an earnings event and not a capital event for the property-casualty industry.
September 01, 2020 Read More