Worsening underwriting results for US commercial auto sector

Worsening underwriting results for US commercial auto sector

Worsening underwriting results for US commercial auto sector

The US commercial automobile insurance sector has reported the worst underwriting loss in ten years, according to AM Best. The underwriting loss grew to $4.0bn in 2019, with a combined ratio of 109.4%. Best said the loss was a continuation of a decade-long trend of worsening underwriting results, and the commercial automobile insurance line of business has not generated a…

Korean insurers see net income fall by 26.1% in first quarter

Korean insurers see net income fall by 26.1% in first quarter

Korean insurers see net income fall by 26.1% in first quarter

The Korean insurance industry saw net income fall by 26.1% for the first three months of 2020, according to the Financial Supervisory Service. Net income for the first quarter totalled KRW1,466.2bn. Korean Re said the fall was a result of policyholders intent on hoarding cash amid the coronavirus-triggered economic crisis having increasingly surrendered insurance policies or failed to pay scheduled…

BMS Group appoints head of Asia operations

BMS Group appoints head of Asia operations

BMS Group appoints head of Asia operations

Independent specialist (re)insurance broker BMS Group has appointed Sandra Lee as the head of its operations in Asia. Ms Lee, who is currently based in Hong Kong, will join BMS from Aon upon completion of current contractual obligations. The appointment is subject to regulatory approvals. Ms Lee has been heading Aon’s transactions liability team in Asia since 2012. Prior to…

Turkish insurance sector to see short-term rise in GWP

Turkish insurance sector to see short-term rise in GWP

Turkish insurance sector to see short-term rise in GWP

Following Covid-19, the Turkish insurance market is expected be larger than previously anticipated in 2020, according to GlobalData. Product diversification and digitalisation following Covid-19 are expected to lead to the Turkish insurance industry seeing a short-term rise in gross written premium (GWP). GlobalData said its revised forecasts estimate total GWP will be TRY68.96bn in 2020, compared to TRY66.07bn previously. However,…

Financial interest clauses: viable, useful, but not a panacea

Financial interest clauses: viable, useful, but not a panacea

Financial interest clauses: viable, useful, but not a panacea

A financial interest clause (FINC) is not a panacea for issues of compliance and regulation in the context of a global insurance programme, but it is a viable proposition, according to Praveen Sharma, managing director, global leader of the insurance regulatory and tax consulting practice at Marsh. He added that FINCs should be used as a matter of last resort.…

Willis Towers Watson explores options for D&O and captives

Willis Towers Watson explores options for D&O and captives

Willis Towers Watson explores options for D&O and captives

Captives can provide viable solutions to the challenging directors and officers (D&O) liability insurance market but only for well-funded stable captives given the potential for significant loss volatility. This is according to Willis Towers Watson (WTW), which also suggests that the captive solution is only really suitable for Side B and Side C covers. In an article on captives and…

IASB releases final IFRS 17 but concerns remain over business implications, says WTW

IASB releases final IFRS 17 but concerns remain over business implications, says WTW

IASB releases final IFRS 17 but concerns remain over business implications, says WTW

With the release this week of the final insurance contracts standard IFRS 17 by the International Accounting Standards Board (IASB), a survey from Willis Towers Watson (WTW) has found that just 10% of the surveyed companies already have a clear view on the business implications of IFRS 17. IFRS 17 will take effect with annual reporting cycles beginning on or…

Aon launches new pooled employer plan in US

Aon launches new pooled employer plan in US

Aon launches new pooled employer plan in US

Aon has responded to the US Setting Every Community Up for Retirement Enhancement (SECURE) Act provision by launching its new pooled employer plan (PEP). The SECURE provision allows employers in the US to join forces to create higher-performing, more efficient 401(k) plans. The new plan will be available from 1 January 2021. According to Aon, the new PEP will relieve…