Category:

Reinsurance

AI Kozhikode crash costs re/insurers the highest Indian aviation claims of Rs 660 cr, New India settles full Hull claim of Rs 373.83 cr in a record time

“The payment for aircraft  Hull  has been made within two working days after receiving  necessary  documents from reinsurers, setting high standards of service, reliability and always standing with our clients in the times of need and distress. It speaks volumes of our financial strength, cash liquidity and the trust bestowed on us by entire Indian air line industry as we are writing almost all commercial airlines in India,’’ said Atul Sahey, CMD, NIA. 
The Air India insurance account is majorly reinsured ,above 95 per cent, in London market with global re/insurers like AIG,AXA Allianz and GIC Re providing the reinsurance capacity.Leading aviation and liability broker Global Insurance Brokers was the broker for the AI cover.  .

read more

Arctic headache for ship insurers as routes open up

As climate change opens new sea routes, experienced polar captains like Whatley are coveted for Arctic voyages that can save money on the run between Europe and Asia. But as activity in the Arctic’s waters picks up, insurance companies are grappling with a fundamental question: If something goes wrong, who pays?

So far, it’s unclear that the cost of a major accident would be completely covered by insurance. Damages from a ship spilling oil, hitting an iceberg or becoming marooned can run into the hundreds of millions of dollars.

read more

Epidemic & Pandemic insurance contracts less ambiguous in Asia:Peak Re CEO

“Specifically, when you look at COVID-19, this part of the world is going through its fifth epidemic this century, and this century is only 20 years old. There are much less problems on the wordings side in respect of pandemics in Asia,” Franz-Josef Hahn, chief executive officer, Peak Re said.

Looking ahead to January 1, 2021 renewals,Hahn highlighted that the period represents a chance for reinsurers to “correct pricing” – a move he believes necessary for the development of a “sustainable” marketplace. Otherwise, [the marketplace] is not going to go any further and no capacity will be provided any longer,” .

read more

Insurance costs too steep? Try writing your own

“For many, insurance has become or is becoming more expensive, so people are turning to captives,” said Rodney Bonnard, insurance leader for EY UK Financial Services.

“We are seeing a massive uptick.Seventy-six new captives were formed this year globally, a 200% year-on-year growth, according to insurance broker Marsh. That level of growth is “unprecedented”, Michael Serricchio of Marsh Captive Solutions told a recent webinar.

read more

Swiss Re raises $ 775 mn Cat bond for California Earthquake Authority, to protect Californians against earthquakes

“Swiss Re’s mission as a company is to make the world more resilient. We’re delighted to partner with CEA which has been helping to protect Californians from the financial consequences of earthquakes for almost 25 years,“ said Jonathan Isherwood, Swiss Re’s CEO Reinsurance Americas and Regional President.

“Only around 13% of Californians who purchase residential insurance also have earthquake protection. It’s not a matter of if, but when, the next one strikes. This transaction supports CEA’s ability to extend financial protection to a greater number of California residents who are highly exposed to earthquakes.“

read more

Less carbon, more electric vehicles: automakers prepare for potential Biden win

Trump’s and Biden’s policies for autos and transportation diverge, presenting automakers with very different sets of risks and rewards.
f elected, Biden is expected to quickly reinstate the legal basis for California’s zero-emission vehicle rules and begin the process of reversing the Trump administration’s decision to ease fuel efficiency and carbon emission requirements through 2025.

Automakers could also face sharply higher penalties for failing to meet fuel-efficiency requirements. The Trump administration rolled back those penalties, which the industry said saved at least $1 billion in annual compliance costs, but a federal appeals court in August reversed the administration action.

read more

Further rate hardening expected,cyber insurance market to surpass $ 7bn in 2020:Munich Re

Recent experiences following the lockdown of public life and the business world in many countries have been a wake-up call regarding the staggering potential for systemic risks to result in losses that subsequently trigger many different repercussions. Yet it is by definition impossible to insure risks that lead to losses everywhere at the same time, thus violating the fundamental criterion of insurability, said Munich Re. 

Interest rates have dropped to record lows once again in 2020. Against the backdrop of the coronavirus crisis, it is increasingly likely that the current interest-rate environment will continue to affect low-risk investments for the foreseeable future. These circumstances mean that sustained profits, in long-tail business and elsewhere, will only be possible if prices match the assumed risks, explained Munich Re..

read more

Insures should partner banks to issue Surety Bonds​​​​​​​:IRDAI Panel

Instead of Insurance industry handling alone, a mechanism is required wherein the banking sector and the insurance sector could collaborate for sharing of customer information since banks have more experience in managing these types of risks, suggested the panel..

To start with performance bonds / surety bonds can be issued limited to the projects of NHAIs only and not for all the contractors. The rate should be determined by a market agreement, suggested the panel

read more