Archive for July, 2016

Profits for European reinsurers are expected to be down by as much as 58% in the second-quarter as a series of events suggests it’s likely firms’ Q2 natural catastrophe budgets will be exceeded, according to Deutsche Bank.

The first-half of 2016 has seen both insured and economic natural disasters come in above the long-term average, with the insurance and reinsurance industry on the hook for $30 billion of a total $98 billion economic impact, according to Aon Benfield.

The Philippines Insurance Commission has renewed its efforts to push through a bill that would make property catastrophe insurance mandatory in the country, after lobbying failed to get the idea ratified before the change of President in the country.

Analysts at J.P. Morgan have commented on the impact the Brexit vote might have on Lloyd’s of London insurers and reinsurers, stressing that while the long-term implications remain uncertain, Lloyd’s players don’t appear overly concerned for the near-term.

A spike in collateralised reinsurance activity and the overall, continued evolution of the insurance-linked securities (ILS) industry is expanding the market’s reach and influence across new peril regions, according to Chairman of Willis Re International, James Vickers.

Markel CATCo Investment Management Ltd., the reinsurance and retrocession linked ILS investment and fund manager, has set up a loss reserve specifically for its exposure to the Fort McMurray, Canada wildfire event for its stock exchange listed ILS fund.

The topic of underwriting discipline and whether it is being displayed in the reinsurance market has come to the fore once again at 2016’s renewals, as it becomes increasingly apparent some lines of business no longer meet everybody’s cost-of-capital.

A high level of catastrophe activity in the second-quarter of 2016 is expected to result in losses that exceeds reinsurer budgets, suggesting some will have to endure the U.S. hurricane season absent the buffer of previous years, according to analysts at J.P. Morgan.

A prominent insurance and reinsurance focused lawyer has been added to the Drinker Biddle & Reath LLP Insurance Regulatory and Transactional Team, with the hire of Jay A. Kallas, previously with insurer Allstate where he worked on the companies catastrophe bond issues.

The International Association of Insurance Supervisors (IAIS) is asking for input on the issue of how to determine credit risk charges for collateralised reinsurance as part of the latest stage of its mission to create a Risk-based Global Insurance Capital Standard.