Global premiums top $5trn, led by China and emerging Asia, says Swiss Re

Global premiums top $5trn, led by China and emerging Asia, says Swiss Re

Global premiums top $5trn, led by China and emerging Asia, says Swiss Re

Solid growth in the global non-life insurance sector – particularly in China and other countries in emerging Asia, but also among advanced markets – saw global insurance premiums pass the $5trn mark for the first time in 2018, according to Swiss Re. This is equivalent to more than 6% of global gross domestic product (GDP). The latest sigma from Swiss…

‘Tangible pricing momentum’ at reinsurance renewals outstripped by primary markets, says Willis Re

‘Tangible pricing momentum’ at reinsurance renewals outstripped by primary markets, says Willis Re

‘Tangible pricing momentum’ at reinsurance renewals outstripped by primary markets, says Willis Re

Rising reinsurance treaty terms and conditions are being outstripped by more significant changes in primary markets, according to Willis Re. “The impact of global commercial carriers and Lloyd’s repositioning their portfolios, in terms of price, conditions and capacity, is flowing through into most territories and classes, with an acceleration in the primary market from that previously observed,” states the reinsurer…

Florida market still challenging but improvements on the way

Florida market still challenging but improvements on the way

Florida market still challenging but improvements on the way

AM Best has urged rated insurers in Florida’s insurance market to remain cautious when developing pricing and setting reserves, given the prominent challenges in the market, including escalating reinsurance pricing, ever-present catastrophe risks and assignment-of-benefit (AOB) issues. According to Best, AOB has had “a pervasive, negative impact for many carriers”. It added: “Hurricane losses, AOB issues and adverse loss-reserve development…

Current low-yield environment putting pressure on insurers’ profitability

Current low-yield environment putting pressure on insurers’ profitability

Current low-yield environment putting pressure on insurers’ profitability

Overall, the European insurance sector remains adequately capitalised, but profitability is under increased pressure in the current low-yield environment, according to the June 2019 Financial Stability Report published by the European Insurance and Occupational Pensions Authority (EIOPA). The solvency capital requirement ratio for the median company is 207% for the non-life insurance sector, although significant disparities remain across undertakings and…

WR Berkely forms US primary commercial transportation division

WR Berkely forms US primary commercial transportation division

WR Berkely forms US primary commercial transportation division

WR Berkley Corporation has formed a new division focusing on providing primary commercial transportation insurance products in the US for standard and preferred risks. According to WR Berkley, the new division, Berkley Prime Transportation, “will focus on leveraging analytics and technology to develop new methods of providing quality and responsive service to agents and customers”. Jeanne R Fenster has been…

US P&C industry saw 69% increase in net income in 2018, says Best

US P&C industry saw 69% increase in net income in 2018, says Best

US P&C industry saw 69% increase in net income in 2018, says Best

The US P&C industry recorded a 69% increase in net income to $59.2bn in 2018, according to AM Best, largely thanks to lower losses from catastrophic events, favourable development of prior years’ loss reserves, and higher net investment income. Net premiums written (NPW) also rose significantly, said Best, due in part to the 2017 Tax Cut and Jobs Act (TCJA),…

Fire premium rate increases expected in Japan says Fitch

Fire premium rate increases expected in Japan says Fitch

Fire premium rate increases expected in Japan says Fitch

Major premium rates increases are expected in the Japanese fire business line, according to Fitch Ratings. It pointed to planned premium increases but said the further hikes would be required. Fitch said that Japan’s three non-life groups – Tokio Marine Holdings, Sompo Holdings and MS&AD Insurance Group Holdings – have maintained strong capital buffers despite record-high weather-related losses of JPY1.6trn…

Lloyd’s talks to US insurers about increasing their use of market

Lloyd’s talks to US insurers about increasing their use of market

Lloyd’s talks to US insurers about increasing their use of market

Lloyd’s is reported to have met with US insurers AIG and Chubb to try to encourage them to drive more of their business through the insurance market. According to Reuters, Lloyd’s chief executive officer John Neal met the insurers to talk about potential opportunities for selling more of their insurance products through Lloyd’s. Reuters said Mr Neal “is trying to…

Foreign insurers take larger share of Chinese market

Foreign insurers take larger share of Chinese market

Foreign insurers take larger share of Chinese market

Foreign insurers are taking a larger share of the Chinese market, although they still only account for just over 6% of total premiums. Reuters reported that the Insurance Association of China said the overall market share of foreign insurance firms in China by premium rose to 6.48% as of April 2019, up 1.78 percentage points from a year earlier. The…