5th June 2016

Newslink Global Insurance Trends

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This week, a further position paper was published by three market leaders on the potential detrimental impact on the London Market from the UK's possible exit from the EU-it highlighted that some underwriting companies were already making plans to locate elsewhere if the vote was for "Leave". Tropical Storm Risk(TSR) predicted increased North Atlantic hurricane activity. The Chartered Insurance Institute(CII) released an ethical guidance paper directed at marketing practitioners, and its president issued 2016 Commitment, an unprecedented call to UK life and pensions providers to commit to a framework of professional standards.
EIOPA published updated technical documentation on methodology to derive relevant risk-free interest rate term structures for Solvency II-it also released Preparatory Guidelines on Product Oversight and Governance(POG) for manufacturers and distributors of insurance products. Solvency II Wire research indicated that there was a split across EU National Compliance Authorities(NCAs) relating to a Solvency II external audit.
On the IT front, Apax Partners, majority shareholders of Duck Creek, moved for US-based Agencyport, whilst Accenture joined Guidewire PartnerConnect with a focus on Continental Europe and Latin America. Guidewire's ceo also commented that the last quarter revenue and profitability had exceeded the high end of outlook. Homesite Group in the US were achieving increased scalability and operational efficiencies through its use of Innovation's 1insurer Claims solution, and Watchstone(previously Quindell) released a 2015 financial and operational review. QuanTemplate was listed as a "game-changer" in FinTech 50 2015, Sompo launched the world's first model to evaluate risks to onshore wind farms, and Xchanging(now a CSC company) announced a major multi-product contract to provide back-office claims adjusting and administration services to Marketform.
Munich Re's retail insurer, ERGO, is to undertake a four-year strategy programme with a focus on digitisation-1,800 jobs could go in Germany. ERGO also is to acquire 40% of a Thai insurer, and its Indian joint venture HDFC ERGO, has acquired L&T General insurance group. AmTrust Europe acquired Composite Holdings, RSA finalised the sale of its Mexican operations, and Nexus Underwriting completed a capital deal with XL Catlin to increase the capacity through its Hong Kong branch. Nexus, Lv=, and Willis Towers Watson announced senior management appointments, Helios Underwriting acquired a further limited liability member of Lloyd's and reported a reduction in profit because of an increased use of reinsurance, whilst Gable changed its initial arrangement for regulatory capital provision.
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global trends database services last Wednesday and today at www.onlystrategic.com -featuring advanced structured search and report facilities and a free 14 day full trial.