Market News
UK Risk and Insurance Group Backs Lloyd's Pandemic Coverage Proposal
Airmic, the UK association for risk and insurance professionals, has voiced support for a framework Lloyd's of London released last week for covering business interruption caused by the COVID-19 pandemic and losses from future pandemics and systemic catastrophes. Read More
Sufficient Capacity, Higher Premiums Mark Recent Reinsurance Renewals
Insurers were able to secure sufficient reinsurance capacity at June 1 and July 1 renewals as reinsurers benefited from replenished capital and prudent risk and cost management, according to Willis Re. Reinsurers' capital returned to a point that was just 5 percent below the level at the end of 2019. Read More
Fronting: An Essential Element of Many Captive Insurance Programs
Fronting arrangements are a necessary element of many captive insurance programs, but, though the mechanism is fairly commonplace, there are distinctions-including collateral requirements-among fronting insurers. There are a number of characteristics that distinguish one fronting insurer from another. Read More
New FERMA Survey Shows Hard Market Increasing Interest in Captives
A survey of European risk managers shows a growing number of companies looking to captive insurance as an alternative to a hardening insurance market. The European Risk Manager Report 2020, conducted by the Federation of European Risk Management Associations (FERMA), found 43 percent of respondents indicating they are considering using captives. Read More
Rising Reinsurance Prices, Tighter Conditions Attracting New Capital
Reinsurance price hikes are drawing additional capital to the market amid the fallout from the COVID-19 pandemic, according to Fitch Ratings. In the current environment, there is potential for double-digit reinsurance price increases to extend into 2021, Fitch said. Read More