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Reinsurance

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Reinsurers raise $ 22 billion capital in 2020,booked $20b of COVID-19 related losses:Willis Re

In the first nine months of 2020 the global (re)insurers which Willis Re  track booked $20b of COVID-19 related losses. This remains considerably below the c.$68b mid-point of top-down loss estimates for the global non-life industry. More is coming with Q4 results with, for example, Munich Re announcing on 1 December that it will book an additional c.€1.1b, said the report. 

A number of (re)insurers have included a significant Incurred But Not Reported (IBNR) component in their booked losses due to considerable uncertainty around ultimate COVID-19 losses. This uncertainty is due in part to pending legal rulings, particularly in relation to business interruption (BI) covers, which will decide if and how COVID-19 related claims should be covered.

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Munich Re’s “Ambition 2025” sets new growth and results targets

Return on equity to increase to 12–14% by 2025
Solvency ratio to remain in the ideal corridor of 175–220%
Extensive decarbonisation strategy: Shifting away from coal, oil and natural gas“

“With our Munich Re Group Ambition 2025, we’ve created a strategy that is uniform across the Group – spanning reinsurance, primary insurance and asset management. We have committed ourselves to ambitious financial targets, and we will continue adding value for our shareholders, clients, staff and communities. The Munich Re Group Ambition 2025 will help us to elevate Munich Re to a new level of success.”said  Joachim Wenning,Chairman of the Board of Management

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Munich Re to no longer cover events cancelled for pandemics

The world’s largest resinsurer is making the change after it faced large losses this year in the wake of the coronavirus crisis.

Torsten Jeworrek, who oversees the reinsurance segment, said that Munich Re would remain in the business but that the tweak in its strategy was a result of the pandemic. The resinsurer will also adjust prices for event cancellation coverage, he said.

The cancellation and postponement of sports events like the Olympics in Tokyo as well as concerts have been a major burden for Munich Re, which expects a total of 4 billion euros ($4.85 billion) in COVID-related losses.

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Get used to limited access, EU tells City of London bankers & insurers

Brexit makes it “even more urgent” for the EU to develop its own capital market to cut reliance on the City of London, Europe’s biggest financial centre, Mairead McGuinness said.

Britain’s full access to the EU ends on Dec. 31 when a transition period that followed Brexit in January expires.
Many banks, asset managers and insurers in London have opened hubs in the bloc to avoid disruption to clients from limited direct access from the UK.

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Global reinsurance market outlook stable, reinsurance capital exceeds $470 billion in 2020:AM Best

In its new Best’s Market Segment Report, “Market Segment Outlook: Global Reinsurance,” AM Best states that the current market hardening likely will need to continue for at least a couple of years to have a meaningful impact on the segment. Additionally, pricing momentum will have to be sufficient to offset losses from previous years, including the impact of COVID-19 and ongoing impact from social inflation.

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French insurers to freeze premiums for sectors hardest hit by virus

Under pressure from  French Finance Minister Bruno Le Maire,insurers faced the prospect of being hit by a 1.2 billion euro ($1.45 billion) tax if they did not offer to keep premiums steady next year.

Le Maire, who had been concerned some insurers were preparing to hike premiums, said the freeze would benefit hotels, restaurants and bars as well as firms in the tourism, sports, culture and events industries.

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Aon report highlights a path toward “The New Better” in wake of COVID-19 Pandemic

Study shows global shift in attitudes of leading organizations toward long-tail risks and the impacts on how society will continue to work, travel and convene  

More than 130 organizations across multiple industries and four continents in 10 cities participated in coalition meetings, sharing best practices and outlining new priorities to accelerate economic recovery

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Cyber insurance shifting into personal lines as consumer interest rises in UK:GlobalData

Daniel Pearce, Senior Insurance Analyst at GlobalData, comments: “The need for cyber insurance policies has long been identified in the commercial space, where reliance on technology for day-to-day business activities has grown at an exponential rate. However, individuals have also become increasingly dependent on technology. With their exposure to cyber risks growing, the personal cyber insurance market is burgeoning.”

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Covid 19 Pandemic to hit life insurers’ investment income,ULIP and Pension and Annuity business:LIC Chief

TR Alamelu, member, IRDAI explained that that the solution to the issue of under-insurance in the country does not lie in mandating insurance because a stage has been reached where insurance should be a product on “demand” and It cannot be forced upon consumers by the industry or other stakeholders.

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