US commercial property and casualty (P&C) rates increased slightly in the second quarter of 2020, with the biggest increases being seen in directors and officers (D&O), professional liability and business interruption (BI). This is according to the MarketScout Market Barometer, which tracks rate movement for all industries and coverage classes, as well as by the size of the account (measured…
Sean McGovern has been appointed as CEO, UK and Lloyd’s market, at AXA XL. The insurer said he had been performing the role on an interim basis for some months and has now been confirmed on a permanent basis, subject to regulatory approval. AXA XL’s CEO Scott Gunter said: “Sean’s deep understanding of AXA XL’s business, coupled with his significant…
French reinsurer CCR Re has raised €300m after completing its first bond issue, which was five times oversubscribed. CCR Re said the proceeds will be used to strengthen solvency and for corporate developments, including support for its Streamline business plan. The Tier 2 subordinated bond issue was placed with more than 150 investors in France, Europe and Asia. The issued…
AM Best has maintained its stable outlook for the German non-life insurance market, after the sector’s conservative investments held it steady as Covid-19 shook financial markets globally. AM Best said insurers’ exposure to financial market instability is limited, although Germany’s insurers will record lower premium income in the wake of the pandemic. Growth in Germany’s non-life insurance market in 2020…
US cat losses in the second quarter of 2020 will run 25% higher than the ten-year average, analysts at Credit Suisse have predicted, with the first two months of the quarter already reaching $17bn. It said civil unrest in the US will drive much of the increased loss and analysts said insurers could foot a bill as high as $1bn.…
New research from international credit insurance group Atradius reports that late payments have “soared” in the US, Mexico and Canada (USMCA) region as businesses are hit by the impact of Covid-19. The insurer’s annual Payment Practices Barometer analyses the payment behaviours and sentiment of businesses in the USMCA region. This year’s survey results reveal compromised cashflows and an increased reliance…
Reinsurance rates are now rapidly firming, with prices rising 5% to 35% at the most recent renewals, according to Philip Kett, equity analyst with investment management firm Jefferies International. The analyst said in his latest note that the bank remains broadly positive on the sector, despite the need to recover some of the post-2017 losses and underlying claims inflation on…
Chubb has proposed a model to cover future pandemic risks for businesses in the US, with the insurance industry and government sharing the risk. Under its Pandemic Business Interruption Program put to the US government, there would be two approaches – one for small businesses with up to 500 employees and a separate scheme for larger firms. Both schemes exclude…
Insurance Europe has called for the European Commission to remove the definition of environmental, social and governance (ESG) preferences of policyholders in its consultation on amendments to Solvency II and the Insurance Distribution Directive (IDD) concerning sustainability risk. Insurance Europe said clarification of sustainability preferences should be dealt with in the regulatory technical standards of the Sustainable Finance Disclosure Regulation,…
Global insurance premiums will stage a full recovery next year after the impact of Covid-19, says Swiss Re in a new Sigma report, with the pandemic raising risk awareness levels and demand for protection. Rates are expected to harden in commercial lines and take non-life insurance premiums above pre-crisis levels, Swiss Re says, adding that emerging economies led by China…