Industry News

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CICA Announces Topics for 2020–2021 Student Essay Contest

The Captive Insurance Companies Association (CICA) has announced the case study topics for its 2020–2021 "Using Captive Insurance to Better Manage Risk, Improve Your Bottom Line" student essay contest. The contest, sponsored by Strategic Risk Solutions, sees two-person teams of college risk management and insurance students developing captive case studies.
October 01, 2020 Read More
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COVID-19 Pandemic Highlights Need for a New Approach to Resilience

The COVID-19 pandemic has amplified the challenge posed by a siloed approach to business continuity management and crisis management, according to a new report examining risk professionals' response to the crisis. The report found that the pandemic has highlighted a frequent disconnect between strategic risk and operational resilience and response.
September 30, 2020 Read More
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Marsh's Ellen Charnley: Never Experienced Captive Activity Like this

Marsh set up 76 new captives in the first 6 months of 2020, and its captive insurance leader said she expects more to come in the next 18 months. The number of new formations is more than a 200 percent increase compared to the same period in 2019.
September 30, 2020 Read More
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Best Sees Pandemic Highlighting Weaknesses in Insurers' ERM Programs

The COVID-19 pandemic underscores weaknesses in insurers' enterprise risk management (ERM) efforts, according to a new special report from A.M. Best. The report notes that while ERM has evolved rapidly, the pandemic has emphasized that "unknown unknowns" and "unexpected accumulations" that can affect insurers and reinsurers remain.
September 29, 2020 Read More
  Advertisement—Click here to download the free report on COVID-19 Pandemic Opportunities and Implications for Captive Insurance

New White Paper Focuses on Pandemic and Captives and International Risk Management Institute, Inc., have created a special 12-page report examining the COVID-19 pandemic's implications for the captive insurance industry. The new white paper, "The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance," is available free to "Captive Wire" subscribers.
September 28, 2020 Read More
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RMS Says Insured Losses from Western US Wildfires Could Hit $8 Billion

Catastrophe risk modelling firm RMS estimates that insured losses from wildfires in the western United States will be between $4.0 billion and $8.0 billion. RMS said the projected losses reflect estimates as of September 20, 2020, and indicated that the losses are likely to increase as many fires are still ongoing.
September 25, 2020 Read More
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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