|Daily Willis Review | 23 May 2018|
|European insurers face challenges in GDPR implementation: A.M. Best|
|A.M. Best has found that operational and legal complexities, as well as the tight reporting window for breach notification, are the main challenges that insurers and reinsurers face in complying with the European Union’s General Data Protection Regulation (GDPR).|
The ratings agency’s findings are based on discussions with rated companies to determine their level of preparedness and the impact of GDPR on their enterprise risk management function.
One of the key findings from the report is that the new regulation has urged the insurance and reinsurance industry to undertake a comprehensive data mapping exercise.
Alvise Argenton, Senior Financial Analyst, said: “A.M. Best has been closely monitoring the process of alignment to GDPR among its rated companies as part of their ERM assessment, with a particular focus on associated operational, regulatory and reputational risks.”
|Swiss Re enters global licence deal with CMS|
|Swiss Re has secured a global licence from Collision Management Systems (CMS) which allows it to embed CMS’s software into its telematics-based reinsurance proposition.|
CMS said the deal provides Swiss Re with the ability to process vehicle data from any telematics system and deliver a reliable crash alert to its insurance clients, without the large volume of false alerts.
Charles Smith, Chief Executive Officer, CMS, said: “The crash filtering and data aggregation software licence taken by Swiss Re demonstrates the value and reach of our solution.
“We are proud that an established and well-regarded organisation such as Swiss Re is embedding us into the unique proposition being offered to their global customer base.”
Sebastiaan Bongers, Swiss Re’s Head of Products and Technology, said: “We noticed that insurers across the globe are interested in telematics as a means to turn around the recent trend of increasing number of motor claims.
“However, costs, lack of customer appeal, and doubts as to whether telematics factors are a good proxy for risk have hindered insurers seriously entering the market with telematics products.”
|KBW reports mixed outlook for the P&C sector|
|Keefe, Bruyette & Woods (KBW) has placed a mixed outlook on the property and casualty (P&C) sector for 2018, following the update of its 2018 P&C industry earning model, Reinsurance News has reported.|
Factoring in the recent Q4 2017 results from Verisks’s ISO, KBW found that the mixed results were likely to drive mid-single-digit industry return on equity.
KBW found that the industry experienced its highest net written premium growth rate since the fourth quarter of 2003, with rates up 6.3% year-on-year.
Analysts also expect the industry’s combined ratio to stabilize but warn that underwriting margin compression could be exacerbated if inflation levels increase beyond expectations or if there is heightened regulatory pressure to adjust rates.
According to the report, KBW believes that operating income over 2018 and 2019 should benefit from the recently introduced U.S. tax bill, while rising core loss ratios will stabilize later in the year as reserve releases shrink.
|Ascot acquires Greyhawk Insurance Company|
|Through its subsidiary Ascot U.S. Holding Corporation, Ascot Group has acquired Greyhawk Insurance Company and its subsidiary Greyhawk Specialty Insurance Company, Intelligent Insurer has reported.|
Greyhawk Insurance Company, which has been in run-off since 2006, is a Colorado domiciled admitted lines insurer.
Greyhawk Specialty, a wholly-owned subsidiary of Greyhawk Insurance Company, is a dormant Rhode Island domiciled excess and surplus lines insurer.
According to the report, Ascot said that the acquisition of the Greyhawk companies will help to expand the Ascot U.S platform and provide increased access to the U.S. insurance markets.
The acquisition is subject to receiving the relevant regulatory approvals.
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