Industry News

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Vermont Captive Insurance Association Presents Annual Awards

The Vermont Captive Insurance Association (VCIA) presented several annual awards Wednesday to recognize captive insurance industry participants' contributions to the industry and the VCIA. Thomas M. Jones, Brenda Stewart, and M. Michael Zuckerman were recognized during the VCIA 2020 Virtual Conference.
August 13, 2020 Read More
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First-Half Disasters Cause $31 Billion in Insured Property Losses

Disasters resulted in $31 billion in global insured property losses in the first half of 2020, up from $23 billion during the same period last year, according to the Swiss Re Institute. Natural catastrophes were responsible for $28 billion of the insured losses, most from secondary peril events.
August 13, 2020 Read More
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Global Commercial Prices Up 19 Percent in Second Quarter: Marsh Index

Global commercial insurance prices increased 19 percent in this year's second quarter, according to Marsh's quarterly Global Insurance Market Index. It was the eleventh consecutive quarter of price increases, according to Marsh. The second-quarter increase was the largest since Marsh launched the index in 2012.
August 12, 2020 Read More
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Virtual VCIA Conference Begins Amid Busy Year for Vermont Formations

The Vermont Captive Insurance Association (VCIA) 2020 Virtual Conference began Tuesday against a backdrop of an active year for new captive insurance company formations in the state. Michael Pieciak, commissioner of the Vermont Department of Financial Regulation, said the state has licensed approximately 20 new captives thus far in 2020.
August 12, 2020 Read More
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Insurance Premium Increases Continue Across Most Major Lines in July

All commercial insurance lines except workers compensation saw year-over-year increases in July, according to the IVANS Index, a premium renewal rate index compiled by IVANS insurance exchange service. Compared to July 2019, commercial auto, general liability, commercial property, businessowners policy, and umbrella coverages experienced premium renewal rate increases in July.
August 11, 2020 Read More
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Risk Retention Groups Maintain Financial Stability in First Quarter 2020

An analysis of risk retention groups (RRGs) financial results from the first quarter of 2020 finds that RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses. Demotech, Inc., said RRGs' first-quarter balance sheet ratios appear to be appropriate and conservative.
August 10, 2020 Read More
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Forecasters Now Predict "Extremely Active" Atlantic Hurricane Season

Two leading forecasters have upgraded their projections for this year's Atlantic hurricane season, with both now expecting an "extremely active" storm season. Both the National Atmospheric and Oceanic Administration and researchers at Colorado State University have increased the number of hurricanes they expect this year.
August 07, 2020 Read More
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CICA Settles Insurance Claim over 2020 Conference Cancellation

The Captive Insurance Companies Association (CICA) has settled its event cancellation insurance claim with Tokio Marine HCC for the cancellation of CICA's 2020 International Conference due to the COVID-19 pandemic. CICA has previously indicated that it purchased event cancellation for the conference.
August 06, 2020 Read More
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ICCIE To Hold Virtual "Sweet 16" Anniversary Celebration

The International Center for Captive Insurance Education (ICCIE) will mark the 16th anniversary of its launch with a virtual "Sweet 16" anniversary celebration. The event will be held online at 7:30 p.m. (EDT) Monday, August 10 and will feature Associate in Captive Insurance certificate presentations and other activities.
August 06, 2020 Read More
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With COVID-19 and a Hardening Market, Captives Respond to Challenges

As with previous commercial insurance market disruptions, captive insurance companies are responding to the current hardening traditional market, according to A.M. Best. Current conditions will likely result in more new captive insurance companies or parents of existing captives adding coverage lines.
August 03, 2020 Read More
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US P&C Insurers Saw Record Surplus Drop in the First Quarter

The US property and casualty (P&C) insurance industry experienced its largest-ever quarterly decline in surplus during the first quarter of this year when surplus fell $75.9 billion, according to Insurance Services Office, Inc., a Verisk business, and the American Property Casualty Insurance Association. Since then, the COVID-19 pandemic has continued to affect many insurers.
July 31, 2020 Read More
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EIOPA Offers Proposed Public-Private Pandemic Resilience Solutions

The European Insurance and Occupational Pensions Authority (EIOPA) has presented a proposed public-private "shared resilience solution" for future pandemics. EIOPA's "Issues Paper on Shared Resilience Solutions for Pandemics" acknowledges that private insurance alone is unable to protect society against the financial consequences of future pandemics.
July 31, 2020 Read More
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Alabama Captive Insurance Association Sets In-Person Annual Conference

The Alabama Captive Insurance Association (ACIA) will hold its annual conference in-person September 16–18 at the Westin Birmingham in Birmingham, Alabama. For the first time, the ACIA conference will promote student engagement by incorporating student-focused sessions and networking opportunities.
July 30, 2020 Read More
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August "CICR" Explores the "Next Normal"

Don't miss the August issue of "Captive Insurance Company Reports" ("CICR"), which discusses the importance of risk financing in a post-2020 risk management plan that will need to account for risks uninsurable in the traditional marketplace.
July 30, 2020 Read More
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First Half's $68 Billion in Natural Disaster Losses Below Average

Natural disasters caused approximately $68 billion in losses during the first half of 2020, slightly below the inflation-adjusted 30-year average of $74 billion, according to Munich Re. Insured losses, at $27 billion, were above the average of $20 billion due to the large proportion of North American weather disaster losses.
July 28, 2020 Read More
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For US Property and Casualty Insurers, COVID-19's Impact Remains Uncertain

The COVID-19 pandemic's impact on insurers' financial statements will likely be more pronounced in the second quarter than it was in first-quarter results, according to S&P Global Ratings. The infection rate and deaths related to COVID-19 grew significantly in the second quarter, and business shutdowns were also more pronounced.
July 24, 2020 Read More
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Risk Modeler AIR Worldwide Updates US Hurricane, Inland Flood Model

Catastrophe risk modeling firm AIR Worldwide (AIR) has updated its hurricane and inland flood models for the United States. The updates will help insurers and reinsurers enhance their risk management and provide a comprehensive view of flood risk across the US, AIR said.
July 23, 2020 Read More
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Insurers' Surplus Rebounds in Second Quarter, but Challenges Remain

After declining in the first quarter of the year due to the COVID-19 pandemic, property-casualty insurers' surplus is expected to rebound in the second quarter, according to Kroll Bond Rating Agency (KBRA). KBRA believes the industry can withstand a repeat of the first quarter's market decline and COVID-19 claims.
July 22, 2020 Read More
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Registration Opens for 2020 Virtual Bermuda Captive Conference

Registration is open for this year's Virtual Bermuda Captive Conference to be held September 9–11. Amidst continued uncertainty around the global COVID-19 pandemic, the Bermuda Captive Conference committee decided earlier this year to hold the conference as a virtual event.
July 21, 2020 Read More
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Lloyd's Leaving US Admitted Market To Focus on Reinsurance, E&S

Lloyd's of London will relinquish its admitted market licenses in the United States as part of a plan to strengthen its focus on the US reinsurance and excess and surplus (E&S) markets. Lloyd's will give up its admitted licenses in Illinois, Kentucky, and the US Virgin Islands.
July 21, 2020 Read More