January reinsurance renewals reveal pricing gap, says Willis Re

January reinsurance renewals reveal pricing gap, says Willis Re

January reinsurance renewals reveal pricing gap, says Willis Re

The January reinsurance renewals have seen a growing emphasis on the quality of client counterparties, according to Willis Re. The reinsurance broker said the renewals had revealed a pricing gap between accounts with poor loss records or peak peril exposures, and other accounts. It added that some primary lines are seeing significantly larger rate increases than treaty reinsurance business. “A…

Bermuda Monetary Authority releases report on islands’ captive market

Bermuda Monetary Authority releases report on islands’ captive market

Bermuda Monetary Authority releases report on islands’ captive market

A report on Bermuda’s captive market by the Bermuda Monetary Authority (BMA) has revealed that two thirds of captives originate from North America, and two thirds are ‘pure’ captives. Financial institutions continue to be the most significant industry of parent companies (16%), followed by shipping, transport and storage (12%), automotive, manufacturing and retail (11%), and healthcare (10%). The second annual…

UK directors exposed to no-deal Brexit risk legal actions over lack of preparation

UK directors exposed to no-deal Brexit risk legal actions over lack of preparation

UK directors exposed to no-deal Brexit risk legal actions over lack of preparation

UK company directors have “massively overlooked” liability risks as a result of failing to prepare adequately for Brexit, leaving them personally exposed to legal actions, according to insurance governance specialist Mactavish. It said the directors of virtually every listed UK company are legally exposed, especially if there is a no-deal outcome, because of traditional limitations applied to directors and officers (D&O) insurance cover…

No general reinsurance rate firming but pockets of tightening exist, says JLT Re

No general reinsurance rate firming but pockets of tightening exist, says JLT Re

No general reinsurance rate firming but pockets of tightening exist, says JLT Re

There appears to be no general firming of rates at the January reinsurance renewals, although certain areas show some signs of tightening, according to JLT Re. It said reinsurance renewals broadly defied early expectations of post-loss firming for the second consecutive year at 1 January 2019, and reinsurers’ desire and ability to underwrite risks remained healthy overall. According to JLT…

UK High Court approves QBE’s post-Brexit plans

UK High Court approves QBE’s post-Brexit plans

UK High Court approves QBE’s post-Brexit plans

QBE has received approval for its post-Brexit restructuring plans in the UK, and has completed its Part VII transfers. During a hearing in December, the UK’s High Court approved the plans. QBE said this final step ensures continuity of service for its insurance and reinsurance customers across the EU. “QBE Insurance (Europe) Limited, now called QBE UK Ltd, has moved…

Burning issues for environmental claims

Burning issues for environmental claims

Burning issues for environmental claims

There is a common view that environmental exposures are only really an issue for very large companies in certain sectors, notably oil and gas. But this stereotype does not stand up in the light of European environmental impairment liability claims that we are now seeing. Now in its second year, AIG’s European Environmental Impairment Liability (EIL) Claims Intelligence report reflects…

Denmark introduces new contributions to non-life insurance guarantee fund

Denmark introduces new contributions to non-life insurance guarantee fund

Denmark introduces new contributions to non-life insurance guarantee fund

Denmark has revealed new contributions to the non-life insurance guarantee fund from the beginning of next year, according to insurance premium tax specialists Impendulo. The company pointed to an amendment to the Danish Guarantee Fund for Non-life Insurance Companies Act, which comes into force from 1 January 2019. There is to be a contribution of DKK40 per policy applied to…

AM Best moves global reinsurance industry outlook from negative to stable

AM Best moves global reinsurance industry outlook from negative to stable

AM Best moves global reinsurance industry outlook from negative to stable

The outlook for the global reinsurance industry is improving, according to AM Best, which has revised its market segment outlook to stable from negative for 2019. It said there is a growing alignment between traditional and third-party capital among non-life reinsurers, and a more stabilised pricing environment, albeit at levels still below long-term adequacy. It noted a renewed emphasis on underwriting…

Insurance associations call for two-year delay to IFRS 17

Insurance associations call for two-year delay to IFRS 17

Insurance associations call for two-year delay to IFRS 17

A number of insurance associations from around the world have called for a two-year delay to International Financial Reporting Standard (IFRS) 17. The International Accounting Standards Board (IASB) recently proposed a one-year deferral of the effective date of the standard. However, the group of 11 insurance associations has written a joint letter to the IASB chair, Hans Hoogervorst, calling for…

US class action accuses companies of ‘massive’ conspiracy over captives targeted at individuals

US class action accuses companies of ‘massive’ conspiracy over captives targeted at individuals

US class action accuses companies of ‘massive’ conspiracy over captives targeted at individuals

A federal class action lawsuit in the US is alleging a “massive captive insurance strategy conspiracy” for those mainly targeted at individuals, and is seeking damages from captive consultants that “conspired to design, promote, sell, implement and manage illegal tax-advantaged captive insurance strategies”. The defendants in the lawsuit, which is based in Arizona, include Artex Risk Solutions, Arthur J Gallagher,…