Market News
Significant Increase in Claims Losses Pressures Cyber-Insurer Profits
Property and casualty insurers writing cyber insurance are facing increasing profit pressure as they report significantly higher claims losses in the segment for 2020, according to Fitch Ratings. A large unforeseen event could result in substantial losses that could pressure insurers' capital levels and individual ratings. Read More
Guernsey Experiences Surge in Captive-Based Pension De-Risking Deals
Over the past 18 months, Guernsey has seen a surge in the number of pension longevity risk transfer deals conducted through captive insurance companies based in the domicile. The pension de-risking activity has continued through the uncertainty of the COVID-19 pandemic, according to a statement from Guernsey Finance. Read More
As Rates Harden, Global Reinsurers Should See Modest Profits in 2021
Fitch Ratings said it expects global reinsurers to post modest underwriting profits in 2021 as increases in reinsurance rates across almost all lines are expected to outpace loss-cost inflation. Fitch said this year's catastrophic events have pushed prices even higher in an already hardening market. Read More
Global Reinsurance Capital Grew 7 Percent in 2020, Willis Re Finds
Total capital dedicated to the global reinsurance industry grew 7 percent in 2020 to $658 billion, according to Willis Re. The increase was driven primarily by strong investment market appreciation. New capital raised added to the total, but capital returns to shareholders exceeded those new investments. Read More
Increased Captive Use Includes Spread to New Markets, Report Finds
As companies increase their use of captive insurance due to the hardening commercial market, captive insurance use is spreading from advanced markets to Asia and Latin America, according to a new report from the Swiss Re Institute. Meanwhile, in advanced markets, midsized companies are increasingly using new captive business models. Read More