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
Market Updates
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?
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
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
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)
Swiss Re ILS deal maps the future of ILS: Lohmann
Swiss Re’s recent innovative ILS deal, completed with JP Morgan and designed to help the reinsurer manage its capital, has the potential to grow the sector exponentially, says one of the industry’s pioneers Dirk Lohmann, speaking ahead of the conference Re/insurance Outlook Europe, being held in Zurich in June. New types of ILS deals designed to help re/insurers manage … [Read more...] about Swiss Re ILS deal maps the future of ILS: Lohmann
Non-life insurance run-off deals review Q1 2023
Q1 2023 saw a number of super-sized non-life runoff transactions being announced continuing the trend observed in our 2022 year-end Deals review. 11 deals in total were disclosed in this period, whilst an estimated combined US$6.7bn of gross reserves was transferred to legacy market participants. This estimate represents a record high for any one quarter and equates to 83% of … [Read more...] about Non-life insurance run-off deals review Q1 2023
Observations on the Banking Crisis of 2023
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
Potential Impact of the Silicon Valley Bank Insolvency on the Insurance Industry
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
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
Finality at Last. The First U.S. IBT is Complete
By On October 15th, 2020, the Oklahoma County District Court entered a Judgment and Order approving the first ever Insurance Business Transfer (“IBT”) in the United States.1 Much has been written and debated about the fledgling IBT process in the U.S.; concerns have been raised; perceived risks have been articulated, but now that a transaction has actually been completed, it is … [Read more...] about Finality at Last. The First U.S. IBT is Complete
5 Liability Risk Trends: 2020 and Beyond
The range of exposures facing corporates, as well as subsequent loss and claims scenarios, have increased significantly in recent years with rising court costs, disruptive recalls, political violence and environmental issues impacting businesses – all in the face of a challenging global pandemic. Allianz Global Corporate & Specialty (AGCS) experts highlight five trends … [Read more...] about 5 Liability Risk Trends: 2020 and Beyond
Enstar Plan marks milestone proof of concept for US insurance business transfers
Court approval of an insurance business transfer (IBT) between two Enstar Group Limited affiliates provides a useful proof of concept for this legacy solution in the US. IBT provides insurers with an expanding regulatory toolkit alongside sale, reinsurance, and accelerated closure. So, what new doors does the first application of the Oklahoma IBT statute open and what does it … [Read more...] about Enstar Plan marks milestone proof of concept for US insurance business transfers
Oklahoma Completes First Insurance Business Transfer in the United States
OKLAHOMA CITY – Today, Oklahoma Insurance Commissioner Glen Mulready announced that the District Court of Oklahoma County approved Providence Washington Insurance Company (PWIC) to complete its Insurance Business Transfer (IBT) Plan. With this approval by the Court, the Plan will transfer substantially all the insurance and reinsurance business underwritten by PWIC to Yosemite … [Read more...] about Oklahoma Completes First Insurance Business Transfer in the United States
The Current Impact of Legacy Losses
Milliman provides an overview of legacy exposures that can impact the general liability books of commercial insurance companies. https://www.milliman.com/en/insight/The-current-impact-of-legacy-losses … [Read more...] about The Current Impact of Legacy Losses
The NCOIL IBT Model Law – Transforming the US Insurance Industry
The NCOIL IBT model law provides an efficient restructuring tool that will allow companies to achieve operational and capital efficiencies to compete more effectively in the global marketplace. U.S. insurers and reinsurers now have an expanded landscape for restructuring options in the United States. On March 8th, 2020 the Executive Committee of the National Council of … [Read more...] about The NCOIL IBT Model Law – Transforming the US Insurance Industry
2019 Annual Review of Non-Life Insurance Run-Off Deals
PwC issue their second annual summary of publicly announced non-life run-off deals which shows a continuing trend of transaction activity across the globe. Read more here - /wp-content/uploads/2020/03/non-life-insurance-run-off-q4-deals-update.pdf … [Read more...] about 2019 Annual Review of Non-Life Insurance Run-Off Deals
Catalina commits £5 million to mesothelioma research in partnership with the British Lung Foundation
AIRROC’s Corporate Partner Catalina announces new partnership with British Lung Foundation. Hamilton, Bermuda – Catalina Holdings (Bermuda) Ltd (“Catalina”), an industry leader in the insurance legacy space, is pleased to announce a partnership with the British Lung Foundation, committing £5 million in funding to accelerate research into mesothelioma. Continue … [Read more...] about Catalina commits £5 million to mesothelioma research in partnership with the British Lung Foundation