Market News

Captive insurance companies pursue credit ratings to strengthen corporate governance, improve transparency, and reduce costs. A strong rating reassures reinsurers and fronting companies, potentially lowering fees and premiums. Additionally, captives use the rating process to benchmark performance and gain insights into financial health and best practices. Read More

Kroll Bond Rating Agency's "AI in Insurance: The Future Is Now" examines artificial intelligence's (AI's) expanding role in marketing, underwriting, and claims processing while addressing regulatory challenges. The report highlights AI's benefits, including efficiency and fraud detection, alongside risks like bias and cyber security, emphasizing the importance of governance and compliance for insurers adopting AI strategies. Read More

Don't miss the February issue of "Captive Insurance Company Reports" ("CICR"), in which captive expert Adriana Scherzinger, head of captives, commercial insurance, at Zurich Insurance Group, shares her insights into the captive industry. Read More

Bermuda (re)insurers expect higher loss costs and pressured premium rates in 2025, with a rising combined ratio. Reinsurance pricing is softening, but risk-adjusted returns remain favorable. Strong capital levels support resilience despite California wildfire losses. The insurance-linked securities market stays robust, though aggregate reinsurance faces pressure from severe US storm activity. Read More

AM Best's "January 1 Reinsurance Renewals" report examines key market trends, including softening property rates, stable casualty renewals, record reinsurance capital, and expanding third-party capital. The report also highlights underwriting discipline, economic uncertainty, and secondary perils as critical factors influencing the reinsurance landscape in 2025. Read More