A.M. Best has assigned a negative market segment outlook to the US commercial property-casualty insurance segment due to uncertainty over business interruption legislation related to the COVID-19 pandemic and the increasing frequency and severity of natural catastrophes. Increasing reinsurance costs and low interest rates were other factors.
Don't miss the January issue of Captive Insurance Company Reports (CICR), which contains an in-depth look at the trends, challenges, and opportunities the insurance industry will face in 2021.
Insured losses from natural and man-made catastrophes in 2020 totaled $83 billion, the fifth costliest year since 1970, according to the Swiss Re Institute. Of the total, $76 billion in insured losses resulted from natural catastrophes, a 40 percent increase over 2019.
Optimizing a captive insurance company's capital structure is critical in supporting the captive's long-term success, but there are a number of factors to consider in seeking capital optimization. Factors that shape a captive's capital structure and ways to optimize it are the subject of a recent Strategic Risk Solutions webinar.
Despite considerable volatility in financial markets resulting from the COVID-19 pandemic during the first half of 2020, the global insurance market remained both financially and operationally resilient, according to the 2020 Global Insurance Market Report from the International Association of Insurance Supervisors.