The unprecedented events of the last two weeks in the banking industry have been breathtaking. As the banking and capital markets turn their focus to the Federal Reserve and Washington, the crisis of confidence that has ping-ponged between California, New York and Switzerland has caused many clients and investors to change their relationships in the banking world. Let’s review … [Read more...] about Observations on the Banking Crisis of 2023
Latest Industry News
Understanding and Using Body Language to Improve Negotiations
“Let Me Hear Your Body Talk…”1 Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 5 See if you recognize this scenario: you're in a meeting trying to convince the other side to take your position. But something’s not right. You don't feel comfortable. The mood in the room is guarded and tense. You really don't know why: The sun is … [Read more...] about Understanding and Using Body Language to Improve Negotiations
Smith Gambrell Russell and Freeborn & Peters Complete Combination to Create Global Am Law 150 Firm
ATLANTA and CHICAGO (April 1, 2023) – Smith, Gambrell & Russell, LLP and Freeborn & Peters, LLP announced today that they have completed their combination, effective April 1, creating a global Am Law 150 law firm operating under the Smith Gambrell Russell name. The combined firm is led by SGR managing partner and executive committee chair, Stephen M. Forte, with legacy … [Read more...] about Smith Gambrell Russell and Freeborn & Peters Complete Combination to Create Global Am Law 150 Firm
More On ChatGPT And Insurance Coverage
At the end of February, I did an article, for a Coverage Opinions email blast, that shared the results of my ChatGPT insurance coverage test. I had asked the much talked-about artificial intelligence platform – that offers answers to questions in human-like conversation – what it knew about insurance coverage. Very simple. I asked five very specific questions with answers … [Read more...] about More On ChatGPT And Insurance Coverage
US NAIC Fall 2022 National Meeting Highlights
The US National Association of Insurance Commissioners (“NAIC”) held its National Fall Meeting from December 12 through December 16. Check out Mayer Brown’s updates from the US NAIC Fall 2022 National Meeting. Read More... … [Read more...] about US NAIC Fall 2022 National Meeting Highlights
Third Circuit Dismisses Chapter 11 Filing by Johnson & Johnson Subsidiary Formed to Segregate Talc Liabilities
In a closely watched decision, the Court of Appeals for the Third Circuit ordered the dismissal of the Chapter 11 petition of LTL Management, LLC, the entity created by Johnson & Johnson to hold J&J’s talc-related liabilities in a divisional merger process under Texas law. Reversing the Bankruptcy Court for the District of New Jersey, the Third Circuit held that … [Read more...] about Third Circuit Dismisses Chapter 11 Filing by Johnson & Johnson Subsidiary Formed to Segregate Talc Liabilities
Reinsurance Capital to Drop $40B: AM Best
AM Best estimates that traditional reinsurance capital will drop by roughly $40 billion to $435 billion at year-end 2022, after hefty jumps recorded in each of the prior three years. The projected 8.4 percent decline to $435 billion for 2022 from $475 billion in 2021, following increases of 15.5 percent for 2019, 8.9 percent for 2020 and 10.7 percent in 2021, takes into … [Read more...] about Reinsurance Capital to Drop $40B: AM Best
Legacy Solutions
The volatile and unpredictable insurance market conditions derived from the impacts of the COVID-19 pandemic, as well as emerging cyber, political, and environmental risks, has seen an increase in activity surrounding captives entering legacy transactions. Increasingly recognised as a strategic portfolio management tool, exit solutions help to free up capital and capacity to … [Read more...] about Legacy Solutions
R&Q’s Corver: Due diligence critical to managing social inflation as urges “buyer beware”
Speaking to The Insurer TV as part of #ReinsuranceMonth, R&Q’s group head of legacy M&A said the firm was very conscious of the need to carry out thorough due diligence to properly understand exposures in terms of where claims are arising from within portfolios, and also to “get a real good feel” as to how claims are being managed. “These claims need to be kept on … [Read more...] about R&Q’s Corver: Due diligence critical to managing social inflation as urges “buyer beware”
From the Brink: Tips to Revive A Stalled Mediation
Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 4 Mediation is generally a useful way to slow negotiating parties down and open their minds to optional pathways to an acceptable settlement. Accompanied by a willing counterparty and qualified, experienced mediator, you can often move immovable issues, explore “win-win” propositions, … [Read more...] about From the Brink: Tips to Revive A Stalled Mediation
Survey: How is ESG impacting insurance companies?
Companies around the globe are creating or redefining their Environmental, Social and Governance (ESG) commitments and addressing rapidly changing regulatory obligations. Having worked closely with insurance companies for more than 80-years, we understand the unique risks and opportunities that ESG poses for the industry. We have developed a brief ESG survey for insurance … [Read more...] about Survey: How is ESG impacting insurance companies?
Estimated global non-life run-off reserves rise 11% to US$960bn
Global non-life run-off reserves estimated to have reached US$960bn An additional estimated US$68bn of legacy liabilities are held on the balance sheets of non-insurance corporations Loss portfolio transfers and adverse development covers predicted to be at the heart of future transaction activity Run-off activity at Lloyd’s and US insurance business transfers also … [Read more...] about Estimated global non-life run-off reserves rise 11% to US$960bn
Oklahoma Insurance Department Successfully Hosts Inaugural Oklahoma Captive & Insurance Business Transfer Conference
OKLAHOMA CITY – The Oklahoma Insurance Department (OID) successfully hosted the inaugural Oklahoma Captive & Insurance Business Transfer (IBT) Conference in Oklahoma City. The two-day conference was held at the Omni Oklahoma City Hotel on August 24-25 and attracted a total of 287 attendees with more than 40 percent traveling to Oklahoma City from other states and the United … [Read more...] about Oklahoma Insurance Department Successfully Hosts Inaugural Oklahoma Captive & Insurance Business Transfer Conference
US NAIC Summer 2022 National Meeting Key Takeaways: Restructuring Mechanisms, Insurance Business Transfers, and Corporate Divisions
On August 11, 2022, the US National Association of Insurance Commissioners’ (“NAIC”) Executive (EX) Committee adopted a request from the Restructuring Mechanisms (E) Working Group (“RM Working Group”) to reopen the Property & Casualty Insurance Guaranty Association Model Act (#540) (“Model Act #540”) for amendment to ensure that policyholders will retain guaranty fund … [Read more...] about US NAIC Summer 2022 National Meeting Key Takeaways: Restructuring Mechanisms, Insurance Business Transfers, and Corporate Divisions
Insurers can win the war for talent—if they tell their story
In our overview of the top issues facing the insurance industry, we note that carriers need to do a better job of fully committing to and funding their strategies. This commitment naturally extends to identifying the kinds of skills and attributes they want in their employees. This kind of prioritization may sound obvious, but most carriers are trying to catch up to their … [Read more...] about Insurers can win the war for talent—if they tell their story
Senate Banking Committee Chair Urges FIO and the NAIC to Monitor Private Equity and Affiliated Offshore Reinsurance
Earlier this month, United States Senator Sherrod Brown (D-OH), Chair of the Banking, Housing, and Urban Affairs Committee, urged the Federal Insurance Office (FIO) and the National Association of Insurance Commissioners (NAIC) to examine the increasing role of private equity and alternative investment classes in the life insurance market as well as offshore reinsurance. The … [Read more...] about Senate Banking Committee Chair Urges FIO and the NAIC to Monitor Private Equity and Affiliated Offshore Reinsurance
Regulators Should Identify and Mitigate Climate Risks in the Insurance Industry
The insurance industry plays a critical role in both the financial system and the economy overall, with U.S. insurance companies writing approximately $1.5 trillion in premiums and holding trillions of dollars more in assets on their balance sheets.1 By underwriting the risks of millions of individuals, businesses, and public entities, the insurance industry provides an … [Read more...] about Regulators Should Identify and Mitigate Climate Risks in the Insurance Industry
“Strong momentum in run-off sector continues”- PWC
Strong momentum in the non-life run-off sector last year continued into 2022 with the announcement of eleven deals, says a new report from PWC. The professional services firm said that while the number of deals announced was slightly lower than Q1 2021, the total estimated value of executed deals during Q1 2022 exceeded that of the same period in 2021 ($4.2bn vs $3.3bn), … [Read more...] about “Strong momentum in run-off sector continues”- PWC
Another Sunshine State Insurer Falls: Southern Fidelity Enters Receivership
Southern Fidelity Insurance Company has entered into receivership and is being liquidated, according to the Florida Office of Insurance Regulations (FLOIR). The state’s insurance office made the move on the basis that the insurer was impaired, insolvent or likely to become insolvent and that further transactions would be potentially hazardous to policyholders, creditors, … [Read more...] about Another Sunshine State Insurer Falls: Southern Fidelity Enters Receivership
Drop Anchor or Anchors Aweigh? Making the First Offer In Negotiations
Negotiation Strategies: Tips for Establishing Connection and Optimizing Results Series: Part 3 Years ago, my wife and I took a trip to Mexico. The worker in me was ready to kick back and put down a tequila or two. But my inner negotiator was anxious to test his skills at a Mexican mercado (market). Who would win the test of wills between the novice American buyer and savvy … [Read more...] about Drop Anchor or Anchors Aweigh? Making the First Offer In Negotiations
