Legislation recently approved by Alabama lawmakers and on its way to Gov. Kay Ivey for her signature makes a variety of changes affecting captive insurance companies. Under SB 23, minimum capitalization requirements for pure captive insurance companies and protected cell captives would be reduced to $100,000 from $250,000.
With the COVID-19 pandemic and a high level of natural disasters, 2020 was a year that strained business, society, and the insurance industry. In a recently released sigma report, Swiss Re noted that 2020's $202 billion in global economic losses from catastrophes was the ninth highest for single-year economic losses.
April 1 international reinsurance renewals were consistent with earlier trends as pricing remained firm in virtually all classes and territories, according to Willis Re. The intermediary said reinsurance capacity was adequate across the board, and there were no substantive changes in negotiations over exclusionary language.
The Nevada insurance commissioner would be given new authority to review the qualifications of a captive insurer's manager and, if appropriate, disqualify the manager or suspend or revoke the captive's license under A.B. 45, legislation now under consideration by state lawmakers.
A.M. Best has assigned a stable market segment outlook to the London insurance and reinsurance market. Key factors supporting the outlook included upward premium rate momentum, which is expected to support better underlying performance, greater consistency and clarity of policy wordings, and the ongoing modernization of the market.