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International News

Catastrophic cyber event leading to claims of more than $10 billion has increased since the Pandemic:Willis Re

Mark Synnott, Global Cyber Practice Leader, Willis Re, said: “This year’s survey shows quite clearly that risk professionals around the world believe that the pandemic has increased cyber risk, in some cases dramatically. They expect the insurance industry to respond, but unfortunately not in the way we might hope. While three quarters of the people we surveyed think demand for cyber cover will increase post-COVID-19, only 45% think supply will increase, which perhaps explains why three-quarters think the cost of cover will rise. The insurance industry has some work to do to ensure these expectations are not met!”

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Munich Re issues first-ever green bond

Munich Re will use the raised capital to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework. Projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of living natural resources and land.

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Insurers’ hedge fund investments may face chop after dismal pandemic performance

Those regulations have partly driven recent falls in hedge fund allocations, according to Andries Hoekema, global insurance sector head at HSBC Global Asset Management, but he noted holdings were down also in Asia, which hadn’t tightened rules.

“In Asia, we have some evidence of insurers replacing hedge fund exposure with private equity,” Hoekema said.

This was “driven partly by the more attractive returns of private equity and partly by the disappointing diversification properties of some hedge fund strategies in recent years,” he added.

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 MENA reinsurers strive to adapt to testing conditions:AM Best

AM Best notes that in general, the region’s reinsurers have demonstrated resilience in a difficult operating environment. The strategies adopted by MENA reinsurers vary considerably. Certain reinsurers benefit from long-standing legal cessions in their domestic markets, while others focus on providing proportional capacity. Strategic shifts are ongoing, with some looking to increase nonproportional and facultative business, as well as improve regional and international diversification.

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AXA XL appoints Jonathan Salter as Head of Risk Consulting

Nancy Bewlay, Global Chief Underwriting Officer at AXA XL, said: “As the COVID-19 crisis continues to challenge the way companies operate, loss prevention has never been more important. Jonathan’s extensive experience, innovative approach and proven track record position him ideally to lead AXA XL Risk Consulting, which has, since March, been offering remote services, including site analysis. Our remote, tech-enabled capabilities have been extremely well received by clients and now form a key part of our product suite.”    

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Peak Re appoints Andrew Souter as Director of Markets

Commenting on the new appointment, Franz Josef Hahn, Chief Executive Officer of Peak Re, said “Andrew’s extensive experience working with the capital markets and strong client relationships with global insurers will strengthen our ILS capabilities and will help us to continue to bring unique and innovative (re)insurance solutions to both our customers and investors as we expand further as an organisation”

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Top shipping insurance group will not cover ships for Russia, Turkey pipelines projects

U.S. President Donald Trump’s administration has sought to curb the Kremlin’s economic leverage over Europe and Turkey and has warned investors in the two natural gas pipelines could face sanctions.

The International Group of P&I Clubs represents the world’s top 13 ship insurers and covers nearly 90% of the world’s ocean-going tonnage. The notice carried by its members said that all clubs had issued similarly worded circulars regarding Nord Stream 2 and TurkStream.

Led by Russia’s Gazprom, the $11 billion Nord Stream 2 pipeline project to double the capacity of the existing Nord Stream 1 link is more than 90% complete and scheduled to begin operating next year.

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