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.”

12/5/2018 5:00:00 AM

Source: Business Insurance

Anne Hidalgo, mayor of Paris, said that the Dec. 1 protests and riots are likely to have caused up to €4 million ($4.5 million) worth of damage to the city’s infrastructure, Challenges.fr reported citing sources. Ms. Hidalgo said that the damage does not include business-related losses. Philippe Belaval, president of France’s Center of National Monuments, said that the Arc de Triomphe suffered several hundred thousand euros worth of damage during the protests.

12/5/2018 4:57:00 AM

Source: Business Insurance

A Switzerland-based Societe Internationale de Telecommunications Aeronautiques study found that more than 50% of companies in the aviation sector do not keep cyber security records as part of their risk register, Phocus Wire reported. Barbara Dalibard, the association’s chief executive, said that the aviation industry needs to implement cyber security measures following a rise in the number and sophistication of cyber attacks. Nearly 90% of chief information officers at airlines plan to implement a cyber security program in the next three years.

11/30/2018 4:31:00 AM

Source: Business Insurance

France-based research firm MKG Group S.A. that protest-related violence at Paris’ Champs-Elysees avenue on Nov. 24 is likely to cost hotels around the city at least 10 million ($11.4 million), Reuters reported. MKG said that several tourists are likely to have canceled hotel bookings following the clashes between protesters and police forces. The violence related to rising fuel prices also damaged restaurants and shop-fronts on the Champs-Elysees. Demonstrators have called for a third weekend of protests on Dec. 1.

11/30/2018 4:37:00 AM

Source: Business Insurance

A cyber attack forced authorities in Moscow to shut down the city’s cable car service one day after it had opened on Nov. 27, The Moscow Times reported citing sources. The suspected hackers had demanded a ransom in Bitcoin and were later found, a source said.

Thomson Reuters

11/30/2018 8:31:00 AM

Source: Business Insurance

(Reuters) – Marriott International said on Friday that hackers illegally accessed its Starwood Hotels brand’s reservation database since 2014, potentially exposing personal information on about 500 million guests.

Shares of the company fell nearly 6% to about $115 in trading before the bell.

Marriott said it was too early to estimate the financial impact of the breach and that it would not affect its long-term financial health. It also said it was working with its insurance carriers to assess the coverage.

The company said for 327 million guests, personal information compromised could include passport details, phone numbers and email addresses. For some others, it could include credit card information.

The company said it learned about the breach after an internal security tool sent an alert on Sept. 8. On further investigation, the hotel chain learned data had been hacked long before.

The company, which bought Starwood in 2016, said it had reported the incident to law enforcement and had begun notifying regulatory authorities.

Marriott said it would send emails to affected guests, starting Friday.

“We are still investigating the situation so we don’t have a list of specific hotels. What we do know is that it only impacted Starwood brands,” Marriott spokesman Jeff Flaherty told Reuters

.

Hotel groups have of late become a target of hackers, seeking to steal information such as credit card data.

Last year, both InterContinental Hotels Group PLC and Hyatt Hotels Corp. were victims of cyber attacks.

Hyatt said it had discovered unauthorized access to payment card information at certain of its locations, affecting 41 properties in 11 countries.

Mark A. Hofmann

11/30/2018 8:56:00 AM

Source: Business Insurance

The U.S. House of Representatives and the Senate have voted to extend the National Flood Insurance Program through Dec. 7.

The heavily indebted program was slated to expire Friday, but late votes in both chambers on Thursday gave it a temporary reprieve. The Senate also approved a measure that would extend the program for six months, but the House has yet to move on a longer-term extension.

The program has been allowed to lapse briefly in the past, only to be reauthorized retroactively.

11/28/2018 5:00:00 AM

Source: Business Insurance

The Islamic Insurance Association of London has published guidelines covering sharia-compliant insurance or takaful to deal with capacity constraints in the sector, Reuters reported. The industry association said that the framework would help U.K.-based underwriters to set up Islamic insurance platforms to write sharia-compliant insurance and reinsurance business.