US property-casualty insurers and global reinsurers—including Bermuda reinsurers—are positioned to benefit from recovering market conditions in 2021, according to Fitch Ratings. Higher-than-expected catastrophe losses and coronavirus-related claims will drive premium rate increases, the rating agency said.
Arizona licensed 12 captive insurance companies in 2020, with captive regulators expecting formations to continue to increase this year. The licensing of 12 new captives in 2020—up from 9 the prior year—boosted Arizona's captive count to 131.
Commercial insurance premium renewal rates were up across most major coverage lines in 2020's fourth quarter, according to the January IVANS Index, a premium renewal rate index compiled by the IVANS insurance exchange service. The fourth quarter saw increases across general liability, commercial property, umbrella, and workers compensation.
Vermont licensed 38 new captive insurance companies in 2020, bringing the state's total number of licensed captives to 589. A fourth quarter that saw 11 new licenses contributed significantly to Vermont's new captive formations in 2020.
Captive growth continued in Hawaii in 2020 as the state licensed 21 new captive insurance companies during the year. After the dissolution of 9 captives, the new formations brought Hawaii's captive total to 242, making the state one of the largest US captive domiciles.
In its review of January reinsurance renewals, Fitch Ratings found that the reinsurance market continued hardening as pandemic-related claims, high natural catastrophe losses, and pressure on liability lines of business led to widespread price increases that often went beyond claims inflation.
Lloyd's of London has obtained regulatory approval to form a new protected cell company (PCC) intended to make it easier for investors to gain access to the Lloyd's market. The independently owned and managed London Bridge Risk PCC Limited was formed under the United Kingdom's PCC legislation.