The US National Association of Insurance Commissioners (“NAIC”) held its Summer National Meeting in Chicago on August 12-15, 2024. The Risk-Focused Surveillance (E) Working Group (“RFSWG”) did not meet during the Summer National Meeting. However, a discussion of its recent work with respect to affiliate investment managers and affiliate investments, as well as regarding … [Read more...] about US NAIC Summer 2024 National Meeting Highlights
Latest Industry News
GB D&O Market Update H1 2024
After significant rate reductions throughout 2023 and early 2024, median rates are no longer dropping as drastically as they have over the last 3 years which is in line with our expectations given the significant reductions that have already taken place. Nonetheless, our initial data for H1 2024 indicates 72% of our clients that renewed in Q2 saw their primary rates decrease … [Read more...] about GB D&O Market Update H1 2024
After a landmark year, what’s on the horizon for global reinsurers?
Carlos Wong-Fupuy (pictured above), senior director at AM Best, discussed the findings of a recent report, noting that despite global challenges in benchmarking due to the adoption of IFRS 17, the reinsurance segment continues to expand. Returns on equities in the sector are also expected to remain well above the cost of capital. When asked about a key theme from … [Read more...] about After a landmark year, what’s on the horizon for global reinsurers?
Connecticut Enacts New Changes to Its Captive Insurance Laws
On July 16, 2024, the Connecticut Department of Insurance (the “Department”) issued a press release announcing that Governor Ned Lamont has signed Public Act No. 24-138, “An Act Concerning Insurance Market Conduct and Insurance Licensing, the Insurance Department’s Technical Corrections and Other Revisions to the Insurance Statutes and Captive Insurance”, (the “Act”) into law. … [Read more...] about Connecticut Enacts New Changes to Its Captive Insurance Laws
US State Insurance Regulatory Scrutiny of Private Equity Investors in the Insurance Industry
Private equity (“PE”) firms have been increasingly active in the US insurance industry, attracted by the opportunity to access long-term capital and manage large pools of assets. However, this trend has also raised concerns among US state insurance regulators, who are tasked with, among other things, protecting the interests of policyholders and ensuring the financial stability … [Read more...] about US State Insurance Regulatory Scrutiny of Private Equity Investors in the Insurance Industry
With R&Q set for liquidation, what future for Gibson Re sidecar and its investors?
R&Q Insurance Holdings Ltd. has this morning confirmed that it is filing for a provisional liquidation in Bermuda, raising questions over the future of its collateralised legacy sidecar vehicle Gibson Re. R&Q has been through the wars, both in terms of persistent historical reserve deterioration, a debt-load that has shackled the company, and some might call them … [Read more...] about With R&Q set for liquidation, what future for Gibson Re sidecar and its investors?
Augment Risk hires legacy expert Paul Corver as Advisor
Reinsurance broker Augment Risk has announced that Paul Corver, formerly of R&Q Insurance Holdings (R&Q), will join the firm as an Advisor. Corver brings deep experience and insights in the reinsurance industry to the broker as it looks to strengthen its legacy build-out. He retired from his position as Group Head of Legacy M&A at R&Q in April 2023. He was … [Read more...] about Augment Risk hires legacy expert Paul Corver as Advisor
Best Practice Handling for Legacy Claims
KEY FINDINGS • 62% of carriers globally say that legacy claims challenge profitability and operational efficiency. • General liability claims managed by Gallagher Bassett saw a 34% lower duration to close in North America. • 69% of carriers in North America have increased premiums due to the impact of social inflation. Legacy claims and their impact Legacy claims … [Read more...] about Best Practice Handling for Legacy Claims
Natural Catastrophe and Climate Report: Q1 2024
In this report, we summarize the global loss totals for the first quarter and focus on key issues driving current industry discussions regarding natural catastrophe and climate risk. The financial cost of natural catastrophes to start 2024 were manageable for federal governments and the insurance industry. The minimum USD43 billion in economic loss from all natural perils … [Read more...] about Natural Catastrophe and Climate Report: Q1 2024
Bermuda’s ILS sector needs to show it is sustainable, says Artex’s Faries
After a successful 2023, the insurance-linked securities sector needs to show it can produce sustained returns on equity to its investors, according to Kathleen Faries. The chief executive officer of Bermuda:Re+ILS company of the month Artex Capital Solutions, said the sector saw large capital inflows from “opportunistic” investors in 2023 and now needs to sow underwriting … [Read more...] about Bermuda’s ILS sector needs to show it is sustainable, says Artex’s Faries
Illinois Appoints New Insurance Director
Effective April 15, 2024, Illinois will have a new Acting Insurance Director, Illinois State Senator Ann Gillespie. Senator Gillespie will step down from her Senate seat and will need to be confirmed by the Senate in her new position. Read More... … [Read more...] about Illinois Appoints New Insurance Director
Global Insurance Run-Off Survey 2023
https://player.vimeo.com/video/928071878?h=a317416669 https://player.vimeo.com/video/928071342?h=fa7dc337db The PwC 2023 Global Insurance Run-Off Survey is here! The key takeaway is that the global non-life run-off reserves are estimated to exceed $1 trillion, yes that’s $1 trillion. Read Here... … [Read more...] about Global Insurance Run-Off Survey 2023
2023: The Year AI Started to Be Taken Seriously in (Re)insurance
After the recent release of Gallagher Re’s Global InsurTech Report for Q4 23, Freddie Scarratt, Deputy Global Head of InsurTech at Gallagher Re, looks back at the biggest tech story of last year. Many topics drove the InsurTech narrative in 2023, but perhaps the one that grabbed the most universal attention was artificial intelligence (AI). The graph shows … [Read more...] about 2023: The Year AI Started to Be Taken Seriously in (Re)insurance
“AI” Spells Effective, Efficient Legacy Claims Management
Artificial intelligence, or “AI” as it is called, is dominating the IT field in industries across the board. Discussions about this new breakthrough dominate articles, blogs, newscasts, and podcasts. “What are the advantages? What are the disadvantages? What are the dangers?”... and on and on. Should insurance, or more specifically legacy business, be excluded from this robust … [Read more...] about “AI” Spells Effective, Efficient Legacy Claims Management
Going retro: How recycling capital through customised and structured solutions can generate better returns
A tougher economic backdrop combined with a tightening of reinsurance capacity is prompting Asia Pacific insurers to look at optimising their balance sheets and consider new operating models. Jim Atwood and Roshan Perera explore the rising popularity of retrospective solutions in the region. Reinsurance renewals during 2023 revealed a strong emphasis on price and contract … [Read more...] about Going retro: How recycling capital through customised and structured solutions can generate better returns
Retrospective solutions: Where legacy and reinsurance meet
In recent years the retrospective market has evolved considerably, relieving (re)insurers of unwanted prior-year liabilities (PYL) in new ways and in greater volumes. Some recent transactions would not have been possible five years ago, yet the conditions now exist for further significant advances in the next two years. While retrospective solutions are many and varied, they … [Read more...] about Retrospective solutions: Where legacy and reinsurance meet
Congress Reflection
Success is best when shared. Check out IRLA’s flipbook reflection on this year’s Congress. Read More... … [Read more...] about Congress Reflection
Alternative capital flat at $100bn high at mid-year 2023: Aon
Alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, remained static at its $100 billion at the mid-point of 2023, according to insurance and reinsurance broker Aon. The latest analysis of global reinsurance capital from Aon’s Reinsurance Solutions division, presented just prior to the annual Monte Carlo Rendez-Vous reinsurance … [Read more...] about Alternative capital flat at $100bn high at mid-year 2023: Aon
Global Life and Health Insurance Mergers and Acquisitions (M&A)
Each year, Milliman studies the trends in mergers and acquisitions (M&A) of global health and life insurance companies, with a particular focus on data and deals in North America, Europe, and Asia. In 2022, life and health insurance transaction activity was down sharply. Our research points to the likely causes and projects the landscape for future life and health insurance … [Read more...] about Global Life and Health Insurance Mergers and Acquisitions (M&A)
NAIC Summer 2023 National Meeting Highlights
The Reinsurance (E) Task Force (“RTF”) of the US National Association of Insurance Commissioners (“NAIC”) held a virtual meeting on July 24, 2023, in lieu of meeting in person at the NAIC’s 2023 Summer National Meeting. In addition to routine matters such as adoption of the RTF’s 2023 Spring National Meeting minutes and minor revisions to RTF’s 2024 Proposed Charges, the … [Read more...] about NAIC Summer 2023 National Meeting Highlights
