Industry News

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Members Renew Caribbean Risk Pool Coverage Ahead of Hurricane Season

The member governments of the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) all renewed their parametric insurance coverage for disasters including tropical cyclones, excess rainfall, earthquakes, and fisheries ahead of the 2020 Atlantic hurricane season that started June 1. Members ceded more than $1 billion in risk to CCRIF SPC this year.
June 05, 2020 Read More
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Swiss Re Report Examines Emerging Risks, Some Related to COVID-19

The COVID-19 pandemic has exposed new and changing risks, highlighted societies’ lack of preparation for such a crisis, and made clear that broad risk awareness is essential for proper risk management, according to a new SONAR report from Swiss Re.
June 05, 2020 Read More
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Commercial Insurance Premium Increases Slowed in May: IVANS Index

May insurance premium increases slowed from the prior month, according to the IVANS Index, a monthly premium renewal rate index compiled by IVANS Insurance Services. Year-over-year, all lines except workers compensation saw an increase in average premium renewal rate in May.
June 04, 2020 Read More
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COVID-19 Pandemic Could Complicate Hurricane Season for Insurers

In its annual hurricane season report, Fitch Ratings suggests that the COVID-19 pandemic's continuation into this year's hurricane season is likely to increase the challenge for insurers if a major storm occurs. Most 2020 hurricane season forecasts predict above-average activity this year.
June 04, 2020 Read More
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Legislation To Create TRIA-Like Federal Pandemic Backstop Introduced

A bill that would create a federal pandemic risk backstop has been introduced in Congress. Rep. Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020, on Wednesday.
May 29, 2020 Read More
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US Property-Casualty Market Hardening Continues in First Quarter: CIAB

Commercial property-casualty insurance markets continued to harden in the first quarter of the year, with some lines seeing their largest increases since the September 11, 2001, terrorist attacks, according to the Council of Insurance Agents & Brokers (CIAB). Premiums increased by an average of 9.6 percent in the first quarter.
May 29, 2020 Read More
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FERMA Seeks EU Financial Resilience Framework for Catastrophic Risks

The Federation of European Risk Management Associations (FERMA) has called on the European Commission to create a European Union business interruption resilience framework for catastrophic risks. FERMA called on the commission to address the "severe shortage" of business interruption insurance for disruptions that don't involve physical damage.
May 28, 2020 Read More
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June "CICR" Explores Future of Risk Management

Don't miss the June issue of "Captive Insurance Company Reports" ("CICR"), which discusses the emerging volatility, uncertainty, complexity, and ambiguity world and the role captive insurance can play in addressing the changing risk landscape.
May 28, 2020 Read More
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Future Uncertain for Bill To Allow Risk Retention Group Expansion

Four months after a congressional hearing was held on legislation introduced last year that would allow certain risk retention groups (RRGs) to expand coverages offered to their policyholders, the future of the bill remains uncertain. Under that measure, H.R. 4523, RRGs would be allowed to offer property coverages.
May 26, 2020 Read More
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NOAA Forecast Calls for Active North Atlantic Hurricane Season

The National Oceanic and Atmospheric Administration (NOAA) is predicting an above-normal Atlantic hurricane season this year with a range of 13 to 19 named storms of which 6 to 10 could become hurricanes, including 3 to 6 major hurricanes. The Atlantic hurricane season runs from June 1 through November 30.
May 26, 2020 Read More
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Insurance Groups Offer Alternative Pandemic Backstop Proposal

A group of insurance trade associations has proposed a new federal program that would provide revenue replacement for businesses affected by future pandemics. The taxpayer-backed Business Continuity Protection Program would provide participating businesses with revenue replacement assistance for payroll, employee benefits, and operating expenses following a presidential viral emergency declaration.
May 22, 2020 Read More
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Life/Health Cat Bonds Likely Most Affected by COVID-19: A.M. Best

Life/health-related catastrophe (cat) bonds face the greatest risk of losses from the COVID-19 pandemic, compared with other insurance-linked securities (ILS), according to A.M. Best. Best suggests that the COVID-19 pandemic's overall impact on the ILS market—including most catastrophe bonds—should be limited.
May 22, 2020 Read More
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ICCIE Webinars Focus on Regulators' Views of COVID-19 and Captives

The International Center for Captive Insurance Education (ICCIE) has scheduled two hot-topic webinars focused on how regulators are addressing the COVID-19 pandemic and captive insurance companies. The first webinar focuses on captive insurance companies during the pandemic and the second looks at captives after the crisis.
May 21, 2020 Read More
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COVID-19 Stress Test Finds Most Insurers' Capital Levels Adequate

Stress testing gauging the COVID-19 pandemic's impact on insurance companies' financial strength found most insurers' capital levels provide an adequate buffer against potential balance sheet shocks. A.M. Best analyzed approximately 1,400 rated insurers worldwide, focusing on the impact of COVID-19 on insurers' underwriting and assets.
May 20, 2020 Read More
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2020 Catastrophe Bond Volume Remains Strong Despite Pandemic

The COVID-19 pandemic appears to be doing little to slow issuance of catastrophe bonds and other insurance-linked securities, with issuers bringing $6.1 billion to market thus far in 2020, according to data from the Artemis Deal Directory. There has been $1.06 billion in issuance so far during the second quarter.
May 19, 2020 Read More
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New Triple-I Initiative Offers Resource on Insurance and Pandemic

The Insurance Information Institute (Triple I) has launched an initiative providing an educational resource with regard to insurance and the COVID-19 pandemic. The Future of American Insurance & Reinsurance campaign will focus on ensuring the insurance industry can sustain its role contributing to economic growth and stability.
May 19, 2020 Read More
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Lloyd's Projects Industry COVID-19 Underwriting Loss at $107 Billion

The Lloyd's market says that it anticipates paying out up to $4.3 billion as a result of COVID-19, while projecting $107 billion in overall industry underwriting losses. Lloyd's said the industry's projected $107 billion in COVID-19 losses are on par with some of the biggest major claims years for the industry.
May 15, 2020 Read More
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Actuaries Group Offers Guidance on Federal Pandemic Risk Backstop

The American Academy of Actuaries has suggested that existing US insurance backstop programs may provide insights into crafting a pandemic risk backstop. Those programs help the insurance marketplace provide coverage by capping the risk the market is expected to handle and providing a federal backstop for losses exceeding that cap.
May 15, 2020 Read More
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Treasury Voices Concern over Legislation Forcing Pandemic BI Coverage

In a letter, the US Treasury Department has indicated its concern over legislation forcing insurers to pay COVID-19 pandemic-related business interruption (BI) claims when policies exclude the risk. The letter says insurers should pay valid claims, but forcing insurers to pay excluded claims conflicts with contractual obligations.
May 14, 2020 Read More
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Commercial Market Hardens but Pandemic To Delay Insurer Profitability

The COVID-19 pandemic will hit commercial insurers hard, and most may only return to technical profitability in the second half of 2021, assuming normal levels of catastrophe losses, according to Fitch Ratings. Fitch also said it expects continued rate hardening in the commercial insurance market.
May 14, 2020 Read More