Matthew Lerner 1/7/2019 10:49:00 AM

Source: Business Insurance

Citing ample capacity in existing markets, Pool Re said it would cease writing terrorism contingency cover previously offered to its members, beginning after the first quarter. In a statement Monday, Pool Re said “as a result of sufficient capacity now existing within the commercial insurance and reinsurance markets to cover contingency losses arising from acts of terrorism,” Pool Re “will cease to reinsure Members for the contingency cover they provide to their insureds.” The state-backed terrorism reinsurer began writing such cover shortly after London was awarded the 2012 Olympic Games because the commercial market said it did not have the capacity, the statement said, adding that most of the risks previously ceded to Pool Re involved sporting events, concerts and tours. Commercial contingency markets now wish to retain such risks and not reinsure them to Pool Re, the statement said.

1/8/2019 4:44:00 AM

Source: Business Insurance

U.K.-based cyber insurance comparison platform Cyber|Decider has said that the lack of standard terminology in cyber insurance policies is causing confusion for brokers and customers and is ultimately stifling market growth, UK Tech News reports. Cyber|Decider said that there is a lot of confusion about the policies available and the terms of cover because insurers fail to use standard wording.

1/8/2019 4:46:00 AM

Source Business Insurance

A survey by U.S.-based professional services provider Ernst & Young L.L.P. found that insurers, banks and money managers are planning to move around £800 billion ($1 trillion) of assets from the United Kingdom to the rest of Europe amid Brexit uncertainty, Bloomberg reported. Ernst & Young’s estimate is based on statements from 20 companies that have announced a transfer of assets out of London. Additionally, the professional services firm expects more than 7,000 jobs to relocate from London.

Thomson Reuters 12/4/2018 9:04:00 AM

Source: Business Insurance

(Reuters) — About 100 million users of Quora were affected by unauthorized access to one of its systems by a “malicious third party,” the knowledge-sharing website said Monday.Account information, including name, email address, encrypted password and data imported from linked networks when authorized by users may have been compromised, it said.The company said it is logging out all Quora users who may have been affected to prevent further damage.“We are in the process of notifying users whose data has been compromised,” Quora CEO Adam D’Angelo said in a blog post.The breach, discovered Friday, did not affect question and answers that are written anonymously, the company said, adding that it has also notified law enforcement officials.“We have retained a leading digital forensics and security firm to assist us,” it said.The Quora Inc.-owned website was founded in 2009 by Mr. D’Angelo and Charlie Cheever, two former Facebook employees.

Gloria Gonzalez 12/7/2018 1:26:00 PM

Source: Business Insurance

Most property/casualty policyholders are expected to experience flat to 5% rate increases in 2019, with pricing challenges likely to persist in specific coverage lines such as property-exposed accounts in wind-prone areas, habitational risks and large commercial trucking fleets, according to a report by USI Insurance Services LLC.The property/casualty industry is well capitalized and surplus now stands in excess of $760 billion, according to USI’s 2019 P&C Insurance Market Outlook Report released on Friday. The industry’s combined ratio as of mid-2018 is 98%, according to various rating agencies, but this will likely approach 100% by year’s end, the report predicted.“P&C market surplus will likely continue to grow, fueled by a booming economy, resultant growth in net written premiums and ever-expanding levels of alternative capital,” the report stated. “In the face of competition from other carriers looking to deploy their surplus capital, incumbent markets are often reluctant to walk away from what they perceive to be below-market pricing and will rather look to strike a compromise with clients and brokers to retain business.”Policyholders in windstorm, flood and fire-prone areas are likely to experience upwards rate pressure while those in more hazardous industries or with deteriorating loss profiles may be forced to consider retaining more risk to maintain rate, according to the report.

12/6/2018 5:30:00 AM

Source: Business Insurance

U.K.’s airline regulator has begun enforcement action against Ireland-based Ryanair Holdings P.L.C. for refusing to compensate passengers for strike-related disruptions, Sky News reported citing sources. The Civil Aviation Authority said that the strikes were not “extraordinary circumstances” and therefore not exempt from European Union compensation rules. A series of walkouts by pilots and crew in Spain, Belgium, Holland, Portugal, Italy, Ireland, Sweden, France and Germany forced Ryanair to cancel several hundreds of flights on strike-hit days this year.

12/6/2018 5:29:00 AM

Source: Business Insurance

Swiss consultancy firm Secquaero Advisors Ltd. said that the insurance-linked securities sector is likely to face challenges following large catastrophe losses in 2017 and this year along with low returns, Artemis.bm reports. Dirk Lohmann, chairman of Secquaero Advisors, said that several ILS players may not offer new capacity at the upcoming January 2019 renewals. Mr. Lohmann said that aggregate reinsurance capacity is unlikely to grow in the near term unless reinsurance rates increase during the renewals.

12/6/2018 5:32:00 AM

Source: Business Insurance

Lloyd’s of London syndicates could face higher reinsurance and retrocession rates or unfavorable terms after delaying their renewal plans for 2019, Artemis.bm reported citing sources. Lloyd’s underwriters are also likely to face tougher capital requirements to operate in 2019 following increasing underperformance, the sources said. Reinsurance rates are expected to increase for the January 2019 renewals due to a potential capacity crunch, the sources added.

12/6/2018 5:33:00 AM

Source: Business Insurance

Mexico’s National Chamber of Trucking said that cargo insurance costs have surged 130% after the number of highway robberies increased 90% this year, Mexico News Daily reported. Data from the National Public Security System showed that more than 21,500 cargo thefts occurred this year. Data showed that 28% of all truck robberies occurred in Mexico State while 25% of thefts occurred in the state of Puebla.

Matthew Lerner

12/4/2018 10:33:00 AM

Source: Business Insurance

Alternative capital in the insurance industry reached $95 billion in the first half of 2018, according to a report Tuesday from Swiss Re Ltd.

Such funding now accounted for 22% of the total supply of property catastrophe limits in 2017, having more than quadrupled since 2010, and now supports an estimated annual premium volume of roughly $5 billion, Swiss Re said.

This compares to global capital for the traditional reinsurance segment of approximately $340 billion based on an annual premium volume of $270 billion, the reinsurer added.

Within that 22%, collateralized reinsurance makes up 11%, catastrophe bonds 7%, side cars 3% and industry loss warranties 1%, according to Swiss Re.

While the alternative capital sector did see its share of 2017’s historic catastrophe losses, this did not deter investors from providing fresh capital.

“The ILS [insurance-linked securities] market remained liquid throughout 2017 and investor capital was more than replenished,” Swiss Re said, noting “a mix of both established and opportunistic new investors have contributed to the segment’s growth.”

Further growth in the amount of such funds is expected and their availability could help smooth market volatility, according to the reinsurer.

“We predict that AC [alternative capital] will continue to grow and curb the volatility of the overall reinsurance underwriting cycle,” the report said. “We believe that losses will be more widely spread with the help of institutional investor capital and the ease at which capital can enter and exit the AC sector.”