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7th December 2014

Newslink Trends: Weekly Insurance Global Analysis

This week, EIOPA probably had its busiest period in terms of Solvency II releases-the results of rigorous stress testing, a Common Application Package for Internal Models, two reports on public consultation on Standards and Guidelines, its Third Consumer Trends Report, and an Opinion for NCA's on Crisis Prevention, Management, and Resolution Preparedness. Fitch predicted that the European market would see an increase in M & A's as a result of Solvency II, and Solvency II Wire revealed a survey on entitities that were working on an internal model or a partial internal model. Barnett Waddingham introduced a solution to enable insurers to calculate Solvency II standard formula capital requirements. Interestingly, Hiscox announced the appointment of a Chief Risk Manager, Skuld selected a Risk Manager in London, and the new chair of the Institute of Risk Management(IRM) from Aviva is working on IRM guidance for Solvency II internal models.
Allianz Global Corporate & Specialty(AGCS) reviewed global aviation market trends, and Axco looked at the Russian insurance sector and the impact of western sanctions. The Association of British Insurers(ABI) commented on the Chancellor's Autumn Statement on UK flood relief spending, and PwC opined on the intention in the Statement to form a group to report on the taxation and regulation regime with a view to enabling the London Market to become more competitive, following the London Market Group/Boston Consulting's revealing global research published last month.
There were significant reports on technology change, particularly relating to digitisation and potential new competitors in the insurance sector-a global survey published by Accenture, and a report from an event in Poland involving major European insurers. Guidewire and the Innovation Group produced results which pleased their ceos. Verisk Climate reported on climatic changes in North American severe thunderstorms, and Willis Re introduced a new Japanese tsunami model. Open GI completed a management buyout with the aid of Montagu Private Equity, Unum in the UK selected Mastek's Elixir platform for its group protection business, and Hiscox went live with Sapiens IDIT Software Suite for its UK home business with a view to expanding its use across its retail book globally. ACORD's president and ceo Greg Maciag has decided to hand over the reins at the end of next year. Xchanging faces a delay over the finalisation of acquiring Agencyport Europe and Total Objects as the Competition & Markets Authority(CMA) is to undertake a Phase 2 Review.
The UK-based Managing General Agents' Association(MGAA) reached the 100 membership mark.
Aviva speedily agreed an all share deal with Friends Life to a mixed market reaction, and Chesnara is to acquire in Holland-ceo Graham Kettlewell is to also stand down. Beazley opened an office in Dubai, and Fairfax Financial moved for a general insurance portfolio in Malaysia. Crawford completed its takeover of GAB Robins in the UK.
There were senior appointments at Ecclesiastical, Manulife Asia and Swiss Re Corporate Solutions.
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global database service on Wednesday and today at www.onlystrategic.com