A.M. Best has maintained a stable outlook for the global reinsurance segment, citing price increases driven by rising loss cost inflation; reinsurers' enhanced market discipline, including tighter terms and conditions; and growing demand for reinsurance capacity. A.M. Best also noted some negative factors facing reinsurers, however.
As he enters his second term, Federal Reserve Chairman Jerome Powell will face a variety of challenging conditions as he looks to raise interest rates. The Fed and the chairman recently shifted to a more hawkish stance on inflation, signalling a speedier reduction in the Fed's bond purchase program.
Commercial InsurTech provider Coalition plans to form a captive insurance company to allow it to begin taking risk on its cyber-insurance programs. Coalition said the captive would enhance its ability to manage capacity and long-term growth objectives while providing additional alignment of incentives with the company's customers.
With social inflation a growing liability insurance concern, third-party litigation finance is being recognized as a major driver of the trend, a new report suggests. The Swiss Re Institute report suggests that the United States is the center of the world's third-party litigation finance industry.
Recently formed insurance fronting business Concert Group Holdings, Inc., has formed a Montana-domiciled excess and surplus lines insurer, Concert Specialty Insurance Company. Concert Specialty joins Concert Insurance Company, the group's Illinois-domiciled property and casualty operation, as the two companies doing business under the Concert umbrella.