Industry News

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COVID-19, Economic Downturn Likely To Extend Hard Market: Willis

The COVID-19 pandemic and the economic downturn will likely extend a hard commercial insurance market for North American buyers through 2021, according to Willis Towers Watson. North American commercial insurance buyers will continue facing upward pricing pressure across most insurance lines, along with newfound scrutiny of coverage terms and conditions.
May 12, 2020 Read More
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IAIS Monitoring COVID-19 Impact on Global Insurance Sector

The International Association of Insurance Supervisors (IAIS) says it is monitoring developments and working with other standard-setting bodies to asses the impact of the COVID-19 pandemic on the global insurance sector. The IAIS stressed the importance of the insurance industry to provide protection against the heightened uncertainties created by the pandemic.
May 12, 2020 Read More
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Pandemic BI Bills Pose Existential Threat to Insurance Industry: Best

Legislation that would nullify business interruption (BI) exclusions in existing US insurance policies would pose an existential threat to property-casualty insurers, according to a recent commentary from AM Best. In the United States, most commercial insurance policies exclude losses caused by communicable diseases or viruses.
May 11, 2020 Read More
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FERMA Task Force Looks To Address Nondamage Business Interruption

The Federation of European Risk Management Associations (FERMA) has launched a task force to create proposals for addressing business interruption coverage for catastrophic risks that don't cause physical damage. The task force, which includes senior risk managers from FERMA members, plans to publish initial results by the end of May.
May 08, 2020 Read More
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For Businesses Coping with COVID-19, Varying Responses Add Complexity

As businesses cope with the COVID-19 pandemic and move toward reopening, the management of the process—and the risks involved—can vary significantly from country to country. A panel of risk managers noted that different pandemic responses employed by various countries add complexity to the process.
May 06, 2020 Read More
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Demotech Analysis Finds RRGs Financially Stable, Adequately Reserved

Despite political and economic uncertainty, risk retention groups (RRGs) remain financially stable and continue to maintain adequate loss reserves while increasing written premiums, according to an analysis of RRGs' 2019 financial results by Demotech Inc. RRGs were domiciled in 20 jurisdictions in 2019, according to Demotech.
May 05, 2020 Read More
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Analysis Sees US, UK Insurer COVID-19 Losses Exceeding $32 Billion

A "moderate" loss scenario for property-casualty insurance lines most likely to be affected by COVID-19 in the US and UK markets could reach $32 billion, according to an analysis by Willis Towers Watson, while a "severe" scenario projects $80 billion in losses.
May 05, 2020 Read More
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New CICA Webinar Series Delivers On-Demand Captive Insurance Education

The Captive Insurance Companies Association (CICA) is launching a webinar series that will feature more than 20 on-demand webinars covering a variety of captive topics. The 2020 webinar series, "Building on the Best," will provide more than 20 hours of education, with CICA rolling out 3 new webinars each week.
May 04, 2020 Read More
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May "CICR" Looks at Risk Management, Captive Implications of COVID-19

Don't miss the May issue of "Captive Insurance Company Reports" ("CICR"), in which John Thomson, "CICR" editor, discusses the ramifications of the novel coronavirus (COVID-19) and the risk management implications, including a role for captives.
May 01, 2020 Read More
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Analysis Says COVID-19 BI Losses Dwarf Insurance Industry Premiums

An updated analysis suggests that monthly COVID-19-related business interruption (BI) losses for US businesses with fewer than 500 employees could range as high as $668 billion per month. Those numbers dwarf the premiums for commercial property risks in the key insurance lines which are estimated at $4.5 billion per month.
April 30, 2020 Read More
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COVID-19 Pandemic's Economic Fallout Will Test Cyber Insurance Market

While property-casualty insurers continue to view cyber insurance as an attractive growth opportunity, economic fallout from the COVID-19 pandemic will test the US cyber insurance market, according to Fitch Ratings. The economic fallout from COVID-19 will likely affect recent premium revenue trends and the industry's claims experience.
April 30, 2020 Read More
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Investment Volatility Is Eroding 2019 Global Reinsurance Capital Gains

Total capital dedicated to the global reinsurance industry grew 15 percent year-on-year in 2019, standing at $605 billion at the end of the year. Much of that capital growth has likely unwound thus far in 2020, however, due to the steep sell-off in the stock and corporate bond markets.
April 29, 2020 Read More
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COVID-19 Forces Cancellation of 2020 Rendez-Vous Reinsurance Event

The 2020 Rendez-Vous de Septembre international reinsurance industry conference has been canceled due to uncertainties surrounding the global COVID-19 pandemic. The event had been scheduled for September 12–17 in Monaco and would have been the 64th such annual industry meeting.
April 28, 2020 Read More
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Captive Insurance Could Provide Solutions to Some Pandemic Risk Issues

For all the challenges the COVID-19 pandemic is presenting to businesses, the insurance industry, and society, like other crises before it the pandemic might ultimately create opportunities for captive insurance. A recent Strategic Risk Solutions webinar titled "Captive Insurance Response to a Pandemic" explored this topic.
April 27, 2020 Read More
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AXA XL Announces New Leadership Team, Proposed Operational Changes

AXA XL recently announced a new leadership team and proposed changes to the operating model of its insurance business following a strategic review. Among the most significant changes to the operating model are the creation of a single global insurance underwriting function and the establishment of three geographical business units.
April 27, 2020 Read More
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CICA Announces 2020 Student Essay Contest Winners

A team from the University of Southern California took first place in the Captive Insurance Companies Association (CICA) 2020 College Student Essay Contest. Megan Moore and Natalie Kojababian were named the competition's winners during a webinar Tuesday hosted by Strategic Risk Solutions, sponsor of the CICA Essay Contest.
April 22, 2020 Read More
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COVID-19 Business Interruption Losses Would Dwarf Previous Black Swans

Potential business interruption (BI) loss estimates from the COVID-19 pandemic dwarf previous insurance industry "black swan" scenarios such as two Hurricane Katrinas in a single month. BI losses from the current pandemic would be nearer to five Katrinas in a month, according to an insurance industry economist.
April 22, 2020 Read More
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IRMI Creates COVID-19 Resource Center To Help Users Navigate Pandemic

International Risk Management Institute, Inc. (IRMI), has created a COVID-19 Resource Center to help insurance and risk management professionals navigate the novel coronavirus pandemic. IRMI research analysts are examining policy provisions, monitoring state regulatory responses, and curating applicable content from IRMI's extensive library.
April 21, 2020 Read More
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RIMS Calls for Creation of Federal Pandemic Risk Insurance Program

The Risk and Insurance Management Society (RIMS) has called for the creation of a pandemic risk insurance program to accelerate the country's economic recovery. In a letter Monday, RIMS said that a pandemic risk insurance program would increase access to capital from lenders and establish a viable insurance market.
April 21, 2020 Read More
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FERMA Urges European Commission Action on Future Pandemic Risks

The Federation of European Risk Management Associations (FERMA) has urged the European Commission to reduce the impact of future pandemics by sharing lessons learned across member states; using risk management tools at organizational, national, and European levels; and supporting public-private funding initiatives.
April 20, 2020 Read More