Negative outlook for India’s non-life insurance sector maintained by Best

Negative outlook for India’s non-life insurance sector maintained by Best

Negative outlook for India’s non-life insurance sector maintained by Best

Strong competition in India’s non-life insurance sector, together with poor pricing discipline in core business lines, reliance on investment activities for profitability and the economic fallout from the Covid-19 pandemic, have led AM Best to maintain a negative market segment outlook on the sector. Best said the short term is likely to present clear challenges for non-life insurers’ earnings and…

Insurance Council of Australia appoints new CEO

Insurance Council of Australia appoints new CEO

Insurance Council of Australia appoints new CEO

Andrew Hall has been appointed as the new chief executive officer and executive director of the Insurance Council of Australia (ICA). He will take up the role in early September. ICA president and chairman Gary Dransfield said Mr Hall’s corporate affairs and public policy experience would be critical in driving the ICA and the general insurance industry through the challenges…

South Korea’s general insurance market to slow in 2020

South Korea’s general insurance market to slow in 2020

South Korea’s general insurance market to slow in 2020

General insurance business in South Korea is expected to stagnate in 2020, largely due to Covid-19, according to GlobalData. The sector is predicted to see growth declining to 0.7% in 2020, as compared to the 2.8% in 2019. GlobalData said it revised the insurance forecast for South Korea in the aftermath of the Covid-19 outbreak. It said South Korea’s general…

Rates up 21% in UK and 8% in Europe with Covid-19 set to impact market for rest of 2020: Marsh

Rates up 21% in UK and 8% in Europe with Covid-19 set to impact market for rest of 2020: Marsh

Rates up 21% in UK and 8% in Europe with Covid-19 set to impact market for rest of 2020: Marsh

Average commercial insurance rates rose by an eye-watering 21% in the UK during the first quarter and were up 8% in continental Europe, according to Marsh’s latest index, which says Covid-19 will likely impact pricing for the remainder of this year. Many of the increases were driven by financial lines, particularly D&O, but property market rises are now significant and…

Fitch changes outlook for two Japanese insurers to negative

Fitch changes outlook for two Japanese insurers to negative

Fitch changes outlook for two Japanese insurers to negative

Fitch Ratings has lowered the rating outlook for Sompo Japan Insurance to negative from stable after assessing the impact of Covid-19 on its investment returns, and changed the outlook for fellow Japanese insurer Mitsui Sumitomo to negative from stable and affirmed its A+ financial strength rating. Fitch Ratings said Sompo Japan Insurance’s exposure to domestic equities is its “greatest weakness”,…

Insurance sector faces 20% loss of brand value following Covid-19

Insurance sector faces 20% loss of brand value following Covid-19

Insurance sector faces 20% loss of brand value following Covid-19

The world’s 100 most valuable insurance brands could lose up to $100m in value as a result of Covid-19, with the sector set to be one of the most impacted by the pandemic. The latest Brand Finance Insurance 100 2020 report shows that the insurance sector could face a potential 20% loss of brand value. “Covid-19 is undoubtedly going to wreak…

Parima opposes retroactively opening up BI policies to pandemic risks

Parima opposes retroactively opening up BI policies to pandemic risks

Parima opposes retroactively opening up BI policies to pandemic risks

The Pan-Asia Risk and Insurance Management Association (Parima) has joined the fast-growing body of opposition to legislative efforts in the US and elsewhere to try and open up business interruption (BI) coverage retroactively to pandemic risks that were excluded when originally underwritten. The association has called on insurers and brokers across the Asia-Pacific region to rise to the huge challenge…

Retroactive attack on BI policies for pandemic risks would pose material threat to insurance sector: IAIS

Retroactive attack on BI policies for pandemic risks would pose material threat to insurance sector: IAIS

Retroactive attack on BI policies for pandemic risks would pose material threat to insurance sector: IAIS

The International Association of Insurance Supervisors (IAIS) has warned legislators across the world that any efforts to retroactively open up business interruption (BI) policies to excluded Covid-19 losses would create “material” solvency risks for insurers and significantly undermine their ability to pay other types of claims. The association said that if such efforts were allowed to proceed, it would threaten…

Indonesia’s state-owned insurance holding company to improve corporate governance

Indonesia’s state-owned insurance holding company to improve corporate governance

Indonesia’s state-owned insurance holding company to improve corporate governance

The Indonesian government’s decision to form an insurance holding company is expected to lead to a positive transformation with greater corporate governance of government-owned companies in the local insurance industry, according to AM Best. Indonesia’s Ministry of State-Owned Enterprises (SOE) is in the process of establishing an insurance holding company, to be led by state-owned investment holding company PT Bahana…

Contract frustration claims from virus likely to lead trade credit losses: Kennedys

Contract frustration claims from virus likely to lead trade credit losses: Kennedys

Contract frustration claims from virus likely to lead trade credit losses: Kennedys

The Covid-19 pandemic will deliver insured losses in the trade credit market, mainly from falling commodity prices, increased governmental intervention and rising insolvencies of businesses that do not have enough capital to withstand enforced closedowns or supply chain disruptions, according to the insurance team at law firm Kennedys in Singapore. The team, led by Julian Wallace, warns insurance company claims…

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