Industry News

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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
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Captives Serve Owners Well during Pandemic, Future Changes Possible

While the COVID-19 pandemic has hit various businesses and industries differently, captive insurance companies have generally performed well, with many having large amounts of surplus able to help their parent companies deal with difficult financial times. Going forward, many captives will probably review policy language.
August 31, 2020 Read More
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Register for IRMI Construction Risk [Virtual] Conference

The 40th annual IRMI Construction Risk Conference (CRC) is going virtual! Registration is now open for IRMI [Virtual] CRC, to be held October 19–20, 2020.
August 31, 2020 Read More
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Commercial Insurance Premium Hikes Hit Double Digits in Second Quarter

The average commercial insurance premium price increase reached double digits in this year's second quarter, according to the Council of Insurance Agents & Brokers (CIAB) "Commercial Property-Casualty Market Index." Survey respondents reported slight to significant increases for all account sizes and lines of business.
August 28, 2020 Read More
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September "CICR" Explores Social Inflation

Don't miss the September issue of "Captive Insurance Company Reports" ("CICR"), in which Milliman consulting actuaries Kimberly W. Guerriero and Mary Ann McMahon, assisted by Julia W. Rosen, an actuarial analyst, explore social inflation, its impact on captives, the role of COVID-19 in social inflation, and how captives can protect themselves and reduce liability.
August 28, 2020 Read More
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Insurance Gap Grows as COVID-19 Hurts Global Economic Resilience

The COVID-19 pandemic is expected to weaken world economic resilience by nearly 20 percent in 2020 while the combined insurance gap for mortality, health, and natural disaster risks is expected to reach a new high of $1.24 trillion, according to the Swiss Re Institute.
August 27, 2020 Read More
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Europe's Increased Captive Interest Is No Surprise—Laurent Nihoul

Laurent Nihoul, group head of insurance at ArcelorMittal and a Federation of European Risk Management Associations board member leading on captive initiatives, hopes European companies have not waited too long to form captive insurance companies in the hardening insurance market.
August 25, 2020 Read More
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FERMA's 2020 European Risk Management Seminar To Be Virtual Event

The Federation of European Risk Management Associations (FERMA) will hold its 2020 European Risk Management Seminar as a fully virtual event. FERMA cited uncertainty over the potential impact and duration of the COVID-19 pandemic in moving this year's seminar, scheduled for October 12–13, to an online format.
August 24, 2020 Read More
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AIG Sues Ambassador Captive Solutions over Allegedly Forged Reinsurance Agreement

AIG filed a lawsuit on May 11, 2020, against Ambassador Captive Solutions, alleging Ambassador coordinated a scheme of counterfeit insurance policies. Ambassador denies the claims of forgery and instead argues a case of contract dispute.
August 21, 2020 Read More
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South Carolina Names Greg Delleney Assistant Director of Captives

The South Carolina Department of Insurance has named Greg Delleney as assistant director of captives. Mr. Delleney previously was the South Carolina captive division's supervising analyst. A graduate of The Citadel, where he received a bachelor of science in accounting, Mr. Delleney joined the South Carolina department in 2010.
August 21, 2020 Read More
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Steve Aldrich Named To Lead New McGriff Group Captive Practice

McGriff has formed a new group captive practice, McGriff Captive Solutions, and named Steve Aldrich to lead the practice. The new group captive practice will serve as an advisory resource for companies seeking a more cost-efficient way to finance risk while offering members ownership of their underwriting profit.
August 20, 2020 Read More
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ACIA Releases Safety Protocols for Upcoming In-Person Conference

The Alabama Captive Insurance Association (ACIA) has released its official safety protocols for its annual conference, which will be held in-person September 16–18. The ACIA is implementing several safety measures to ensure a safe conference for attendees social distancing and providing masks and hand sanitizer.
August 20, 2020 Read More
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Arsenal Scholar-in-Residence Earns Troy University Faculty Honor

Dr. Edward Pappanastos, scholar-in-residence at captive manager Arsenal and associate chair of the Department of Risk Management and Data Analytics in Troy University’s Sorrell College of Business, has received Troy University's 2020 Wallace D. Malone Jr. Distinguished Faculty Award.
August 18, 2020 Read More
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Captives, Traditional Market May Feel Pandemic's Impact for Years

The impact of the COVID-19 pandemic has been significant for both traditional insurance companies and captive insurance companies. That impact will likely continue to be felt for some time to come, according to speakers discussing "Captives and Unforeseen (Pandemics) Events" at the Vermont Captive Insurance Association 2020 Virtual Conference.
August 17, 2020 Read More
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Captive Insurance Companies May Evolve as Markets, Risks Change

For many organizations, setting up a captive insurance company to cover specific risks may be only the first step in a captive's evolution, experts say. As time passes, the captive may not be where it was at its beginning, said Anne Marie Towle, senior vice president at Hylant Group, Inc.
August 14, 2020 Read More