Category:

Non-Life

Reinsurance price rise slowing due to strong capital supply and recovering profitability: Fitch

Fitch expects the sector’s combined ratio, normalised for large losses, to improve by 2pp–3pp in 2021 and another 1pp–2pp in 2022 as price increases gradually feed into underwriting margins.

However, price rises are slowing due to strong capital supply and recovering profitability, and we expect risk-adjusted prices to remain largely unchanged in 2022.

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New India’s credit ratings affirmed, with $ 5.1 billion of capital co can insure large overseas risks: AM Best

NIA’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which remained at the strongest level in fiscal year 2021, as measured by Best’s Capital Adequacy Ratio (BCAR).Its underwriting portfolio is considered to be well-diversified by line of business, distribution channels and geographically. In addition, the company is the only direct insurer in India with considerable overseas operations, which provide a level of diversification to its domestic portfolio. While the domestic market continues to present significant growth opportunities for New India, intense competition in the largest lines of motor and health business continue to drive premium rate inadequacies and pressure underwriting margins, said AM Best.

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From locusts to cyclones: the human cost of interlinked disasters

The huge locust swarm which hit the Horn of Africa in the Spring of 2020, and Cyclone Amphan, which struck the border region of India and Bangladesh in May that year, might not seem, on the face of it, to be connected, but a report released on Wednesday by UN University, the academic and research arm of the UN, shows that there were connected underlying causes: greenhouse gas emissions from human activity, which are affecting the environment in unpredictable ways, and a lack of sufficient disaster risk management.

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India Inc resorted to salary cuts in Q1, will be drag on economic recovery: Report

The “weak” wage growth will prove to be a drag on the overall economic recovery in the medium term as it will affect household consumption, the report by India Ratings and Research said.

An environment of pandemic-led uncertainty and elevated inflation could impact the level of spending and hence the overall demand. Resuscitating wages will be critical for a revival of the overall economy and Capex cycle, which has been languishing even before the COVID-19 outbreak, it said., it said.

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‘It’s connected to you’: Shared causes fuel surge in disasters

From Arctic heat and wildfires to Texas cold-weather power outages and Amazon deforestation, threats around the world that may seem unrelated are increasingly compounding each other, United Nations researchers said in a report released Wednesday.

The underlying causes of the rising risks – from climate change to lack of cooperation among governments and ignoring the value of nature in economic decision-making – are common across many of them, researchers said.

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