Financial institutions, including Insurers, are considering the potential impact of the Silicon Valley Bank’s (“SVB’s”) insolvency. SVB and its parent holding company have provided funding and debt financing to InsurTech Insurers and other venture investment firms. Some of those Insurers have already publicly announced the extent to which the SVB Insolvency has had an impact. … [Read more...] about Potential Impact of the Silicon Valley Bank Insolvency on the Insurance Industry
Industry News
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
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
Insurers need to change business models to drive climate resiliency, report shows
New research published from Capgemini and Efma’s recent World Property and Casualty Insurance Report reveals that climate change is hurting the insurance industry, and that insurers need to change their business models to achieve climate resiliency. The inaugural report titled – “Walking the Talk: How insurers can lead climate change resiliency”, addresses the impacts on … [Read more...] about Insurers need to change business models to drive climate resiliency, report shows
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
IRLA Congress has broader legacy on the agenda
Delegates are heading to Brighton for the Insurance and Reinsurance Legacy Association (IRLA) congress 2022 today and Steven Goate, explains that the market is growing and there is highly likely more to come. It came as little surprise that this year’s IRLA Congress sold out within a fortnight. The legacy market continues to grow and with changes to regulation around the … [Read more...] about IRLA Congress has broader legacy on the agenda
Decentralized Insurance – A New Frontier
If you are reading this Legal Update, chances are that you have already heard of Decentralized Finance (DeFi). Put simply, DeFi is a decentralized platform that enables peer-to-peer provision of various types of financial services without the need for a central intermediary (such as a bank). DeFi transactions are enabled by public blockchains, such as Ethereum, Solana, Terra … [Read more...] about Decentralized Insurance – A New Frontier
Roll of the Dice
The first IRLA Congress since May 2019 was a storming success. Nearly 300 The Legacy Professionals Association delegates from across the international legacy market attended this three times postponed annual event and many declared it to be the best Congress to date. It was clear that delegates were very keen to catch up with colleagues and friends, and to meet and develop new … [Read more...] about Roll of the Dice
Making a run for it
This article was originally published in the Captive Insurance Times, issue number 233 and is republished here with permission. Carolyn Fahey of AIRROC and James Cameron of PwC UK discuss the current state of the run-off market, and how legacy solutions can be utilised to help insurers take advantage of the hardening market In the current environment of a hardening … [Read more...] about Making a run for it
Recognition for long serving IRLA Head of Academy
The Board of the Insurance and Reinsurance Legacy Association (“IRLA”) are delighted to announce that Leslie-Ann Giovnilli was recognised with its Services to Legacy Award at its Gala Dinner at Congress in Brighton yesterday. Ms Giovnilli received a standing ovation from all 280 diners present. In presenting the award Paul Corver noted that this was in part recognition of … [Read more...] about Recognition for long serving IRLA Head of Academy
For Now, No Need for Federal Cyber Reinsurance Backstop: Experts
Business owners need guidance rather than a federal reinsurance backstop to help them navigate an increasingly volatile cyber insurance market, a panel of experts said recently. “I don’t think a compelling case has been made yet for an explicit government intervention,” said Phil Edmundson, founder and CEO of Corvus Insurance, an MGA focused, in part, on providing specialty … [Read more...] about For Now, No Need for Federal Cyber Reinsurance Backstop: Experts
Federal Insurance Office Spells Out Priorities Regarding Climate-Related Financial Risks in Insurance Sector
On August 31, 2021, the Federal Insurance Office (“FIO”) issued a request for information regarding climate-related financial risk in the insurance sector. In the Request, the FIO laid out a conceptual framework for categorizing climate-related financial risk and its three pronged approach to implement portions of the President’s January 27, 2021 Executive Order on the Climate … [Read more...] about Federal Insurance Office Spells Out Priorities Regarding Climate-Related Financial Risks in Insurance Sector
Divided We Stand
American states have risen to the challenge. Faced with a decided advantage that re/insurers have to shed books of business under Part VII of the UK’s Financial Services and Markets Act, and responding to requests by US re/insurers for a similar mechanism, the American states have enacted a variety of legislative approaches to enable such transactions in the US. The two … [Read more...] about Divided We Stand
Arkansas Insurance Department Lauds New Insurance Business Transfer Law
LITTLE ROCK, Ark. – Earlier this spring, Arkansas joined a handful of U.S. states in adopting the new insurance business transfer model called the Insurance Business Transfer (IBT) Act. The law provides insurance companies an organized and efficient process to transfer blocks of insurance business from any jurisdiction to another insurance company in Arkansas, benefiting … [Read more...] about Arkansas Insurance Department Lauds New Insurance Business Transfer Law
Insurance M&A deals reach $24.6B in first-half 2021
“The pace and magnitude of insurance dealmaking continued to accelerate in the first half of the year as sellers look to capitalize on the high valuations driven by strong demand for insurance businesses,” Mark Friedman, PwC insurance deals leader, said in a statement. (Photo: nespixt/Adobe Stock) Five megadeals in the first half of 2021 are just the beginning of what’s … [Read more...] about Insurance M&A deals reach $24.6B in first-half 2021
