Daily Willis Review – January 8, 2018

FEMA expands reinsurance program
The U.S. Federal Emergency Management Agency (FEMA) has increased its reinsurance placement for the National Flood Insurance Program (NFIP) for 2018, securing $1.46 billion of coverage.

The reinsurance agreement is with 28 private reinsurance companies, effective from January 1, 2018, to January 1, 2019.

The program is structured to cover 18.6% of losses between $4 billion and $6 billion, and 54.3% of losses between $6 billion and $8 billion.

FEMA paid a total premium of $235 million for the coverage, the release said.

Roy E. Wright, Director of FEMA’s National Flood Insurance Program, said: “Recent flooding disasters make even clearer the need for FEMA to share more of the financial risk from flood insurance with the private markets. Congress provided us the authority, and FEMA is committed to expanding the use of these risk transfer tools.”

“As of January 1, 2018, more than 91 thousand survivors filed claims for Hurricane Harvey, and FEMA has paid over $7.6 billion in losses to those policyholders.

“With reinsurance, FEMA strengthened its ability to recover from these flood losses, recovering $1.042 billion from the private markets.”

Beazley strengthens newly-launched U.S. marine platform
Beazley has appointed John Moy as U.S. Marine Underwriter within the company’s newly-launched U.S. marine platform.

In his new role, Mr. Moy will be responsible for underwriting and building the company’s U.S. hull, protection and indemnity and liability business for the marine and marine construction sectors.

Most recently he served as Chief Underwriting Officer at Water Quality Syndicate and brings with him a wealth of experience in the marine sector.

The appointment follows Beazley’s announcement that it was establishing a U.S. marine platform with the strategic aim of capturing opportunities that do not typically get placed outside of the U.S. domestic market.

Steve Vivian, Head of U.S. Marine, said: “John’s depth of experience and expertise makes him uniquely qualified to build out our hull and liability portfolio in the US.

“He has an extensive network across the marine broking, insurance and client communities in the US and is highly regarded for his knowledge of the market. I am delighted that he is joining us at this important stage of our growth.”

PERILS places second loss estimate for extratropical cyclone Xavier at $389.8 million
PERILS has announced its second loss estimate for extratropical cyclone Xavier, which affected Germany on October 5, 2017, of €325 million ($389.8 million).

The second estimate is a revised estimate of the property insurance market loss, compared to the initial loss estimate of €291 million ($349 million) on November 16, 2017.

In line with the PERILS loss reporting schedule, the third loss estimate for Xavier will be released six months after the event on April 5, 2018.

PERILS is an independent Zurich-based organisation providing industry-wide natural catastrophe exposure and event loss data.

Everest Re appoints President and CEO of the Everest Insurance Division
Everest Re has appointed Jonathan M. Zaffino as President and Chief Executive Officer of the Everest Insurance Division, effective immediately.

In his new role, Mr. Zaffino will be responsible for planning and executing on the division’s business strategies and assume oversight for the Everest Insurance Company of Ireland and the Everest Lloyd’s Syndicate operations.

Mr. Zaffino most recently served as President of the North America Insurance Division at Everest Re and first joined the company in 2015.

Dominic J. Addesso, President and Chief Executive Officer of Everest Re Group, said: “Jon has done a tremendous job in the build out of the North America Insurance Division and elevating the Everest name in this important marketplace.

“His strong leadership capability and strategic vision make him the ideal candidate for leading the continued build of Everest’s global insurance brand.”