|Climate change has negative credit impact on P&C: Moody’s|
|In a recent report, Moody’s has highlighted the challenges created by climate change on the property and casualty (P&C) industry, which account for a net negative credit impact on the sector.|
According to Reinsurance News, in order to keep up with the changing risk landscape, insurers and reinsurers need to continuously assess, measure, and mitigate catastrophic risks.
Climate change also increases uncertainty in risk modelling and pricing, meaning the industry could face pricing trends consistently falling behind actual losses, creating profitability challenges.
The ratings agency warns P&C insurers and reinsurers to expect a negative credit impact from climate change correlated risks as the frequency and severity of natural catastrophe events increases.
James Eck, Vice-President Moody’s, said: “The effects of climate change on the frequency and severity of catastrophic events are difficult to predict, and the correlation of climate-exposed risks that span P&C re/insurers’ balance sheets increases the magnitude of potential losses arising from the physical and transition risks associated with climate change.”
|CEA reinsurance program expands to $8 billion|
|The California Earthquake Authority (CEA) reinsurance program has surpassed $8 billion in size following the January renewals, with further growth to come, the risk transfer blog Artemis has reported.|
The CEA, California’s not-for-profit residential earthquake insurance provider, aims to have $10 billion of protection by 2022, the report said.
The reinsurance program has been steadily increasing over the past years, growing from $5.4 billion in 2016 to $6.3 billion in 2017.
Capital markets play a large role in the reinsurance program by investing in these catastrophe bond issues and also through some collateralized reinsurance participation.
Currently, the CEA insures over 1 million homes across California against earthquake risks.
According to the report, the CEA anticipates uptake of its insurance policies to continue, driving up its exposure as well, and so forecasts and targets an increasing use of reinsurance coverage to manage this over the coming years.
|GIC Re to establish Lloyd’s syndicate|
|State-owned reinsurer, General Insurance Corporation of India (GIC Re), is to establish operations as a Lloyd’s of London syndicate in April 2018, The Times of India has reported.|
The syndicate, GIC Syndicate 1947, is to be managed by Pembroke, Liberty Mutual Company’s specialist Lloyd’s managing agency.
The announcement follows GIC Re receiving ‘in principle’ approval from the Lloyd’s Franchise Board to establish a new syndicate in the Lloyd’s of London market in December 2017.
The company has appointed Neil Attwood as its Active Underwriter of Syndicate 1947
|Brit appoints Head of UK Property|
|Brit has announced the appointment of Neil Walker as Head of UK Property, according to Intelligent Insurer.|
In his new role, Mr. Walker will be responsible for leading and building out Brit’s UK property offering, as well as working with its specialist liability team to align Brit’s UK property and casualty proposition.
He brings with him more than 20 years’ experience in the broking industry with a focus on property and casualty.
Mr. Walker joins the company from Marsh, where he was most recently UK Placement Leader for Marsh Propositions.
Matthew Wilson, Chief Executive Officer of Brit, said: “I’m pleased to welcome Neil to Brit, and look forward to him helping expand our UK Property presence.
“His track-record, as a broker, of working with both insurers and clients to develop bespoke and innovative solutions will prove valuable experience.”
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