Of Special Interest


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15th September 2019

Newslink Global Insurance Trends-Editor's Weekly Overview

This week, cyber continued to be a hot subject-Aon published a new report-"Prepare for the expected: Safeguarding value in the era of cyber risk", and Beazley selected Guidewire Cyence Risk Analytics to leverage its internet-scale data collection capabilities to improve underwriting, capital and pricing efficiencies-starting with cyber. The latest InsurTech M&A Market Report from international technology mergers and acquisitions advisors, Hampleton Partners, revealed that 2019 global fundraising for insurTech neared $3bn in 1H 2019 and is on track to reaching $6bn by the end of the year. Last year, insurTech fundraises increased 27%, with 257 deals closed in 2018 vs 202 deals in 2017. J.D. Power's latest survey indicated that 74% of US homeowners insurance customers believe the industry needs improvement, with 13% of customers indicating that “radical improvement is needed".
S&P Global Ratings published a new report-"A Look At Our Ratings On The Top 12 Global Multiline Insurers After Application Of Our New Criteria". Meanwhile, RMS estimated insured losses to the Caribbean from Hurricane Dorian will be between $3.5 and $6.5bn, and between $500m and $1.5bn in the US. Xceedance announced the availability of On-Demand Catastrophe Modelling Services, using the Oasis Loss Modelling Framework(Oasis LMF). Amongst other technology trends, EMC Insurance Companies(EMC), the US multi-state commercial insurance provider, is to implement Guidewire products, and Majesco solutions were chosen by South Korean insurer Kookmin Best US Branch(KBICUS).
On the regulatory front, The Financial Conduct Authority(FCA) stepped up efforts to ensure firms are getting ready for a no-deal Brexit. Insurance Europe and the CFO Forum issued a joint call for further improvements to be made to the International Financial Reporting Standard (IFRS) 17—insurance contracts, and the Global Federation of Insurance Associations(GFIA) continued to raise serious concerns about proposed capital rules from the Canadian Office of the Superintendent of Financial Institutions (OFSI).
RSA has merged its Commercial Risk Solutions(CRS) and troubled Global Risk Solutions(GRS). Asta announced that Nephila Capital, the specialist ILS re/insurer and investment manager, had received approval to form its own Lloyd’s managing agency, whilst Charles Taylor Managing Agency and its associated companies were acquired by Premia, subject to regulatory approval. Hannover Re said it was on course for further profitable growth in property and casualty reinsurance, and run-off specialist newcomer DARAG continued on the acquisition trail in Germany and the US. Hyperion and RKH are to merge under one management team. There were senior appointments at RSA, Suncorp, Lloyd's Market Association(LMA), Hiscox, Nexus, Tokio Marine Kiln(TMK), BMS, and Marsh.
Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Research Matrix service at www.onlystrategic.com