A rising ‘tsunami’ driven by a combination of low asset yields and high catastrophe losses suffered by the leading insurers and reinsurers is more likely to force a hardening in the corporate insurance market than a shock impact from the European debt crisis, according to Axel Theis, CEO of Allianz Global Corporate & Specialty (AGCS).
Complaints by risk managers about a lack of policies to cover business interruption that occurs without a preceding property loss have apparently borne fruit. Last week broker Willis launched just such a policy onto the market following in the footsteps of insurer Zurich. The policy is designed to protect the German motor industry against supply chain risks.
Recent catastrophe losses, the introduction of more onerous catastrophe models and rising reinsurance prices all signal an uncertain future for the property insurance market and could result in a restriction of capacity and increased rates for primary buyers, Lockton have warned.
Global property and casualty rates show no sign of hardening and, barring a major loss, are expected to remain soft for the next twelve months, according to Nick Bacon, Chief Executive Officer at Bowring Marsh, the specialist international placement broker at Marsh.
FERMA this week launched a guide for non-executive and executive board directors to help them comply with the risk management requirements of the 8th European Company Law Directive.
Rates for commercial property insurance are unlikely to rise significantly in the near future despite the attempts of some insurance companies to talk up the market, according to analysis from actuarial consultant EMB.
Winter storm Xynthia will probably cost insurers between €1.5bn and €3bn for losses incurred in France, Germany, Belgium and the Netherlands according to catastrophe modelling firm AIR.