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Reinsurance

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IOC seeks insurance compensation for delayed Tokyo Olympics

Jun 5, 2020 | , , ,

An “open discussion” is under way with insurance brokers, the IOC’s Olympic Games operations director Pierre Ducrey said Thursday. The aim is “to try and find the right level of compensation to help us bear the cost of having to wait another year,” Ducrey said.

The IOC pays for insurance against the cancellation of an Olympics but it has been unclear if its policy covers the one-year postponement forced by the coronavirus pandemic.

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COVID-19 Pandemic: Emerging risks and trends

Jun 4, 2020 | , , , , , ,

•Intergenerational tensions, supply chain disruptions and the fragility of public healthcare are among the risks and trends amplified by the COVID-19 pandemic, 2020,
•The coronavirus outbreak showed that societies weren’t sufficiently prepared, and that broad risk awareness is crucial for proper risk management;,
•The current crisis shouldn’t overshadow the need for the world to transition to a more sustainable economy and a low-carbon future, and the insurance industry can play a pivotal role in this

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Self-driving cars could only prevent a third of U.S. crashes – study

Jun 4, 2020 | , , , , ,

Companies developing self-driving vehicles, including traditional automakers and technology companies, have repeatedly positioned fully automated driving as a tool to drastically reduce road deaths by taking the human driver out of the equation.But the IIHS study outlined a more nuanced picture of human driver error, showing that not all mistakes can be eliminated by camera, radar and other sensor-based driverless technology.

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Munich Re defends top global reinsurance ranking in 2019

Jun 3, 2020 | , ,

China Re,only Asian reinsurer among the top 10  global reinsurer, with a total reinsurance premium of $ 13.31 billion has fallen one notch down to ninth position in 2019.However,another Asian major Korea Re with a global premium of $ 6.91 billion has improved its position by one notch to 12th from 13th in 2019
India’s GIC Re with a global premium of over $ 6.53 billion in 2019 has maintained its existing 14th position in the new list.
For the first quarter of 2020, Munich Re disclosed COVID-19 related loss of €800 million, mainly from event cancellation insurance, while Swiss Re said it was expecting a $476 million nonlife charge that mainly covers expected claims for canceled or postponed events. Allianz Group and Hannover Re announced estimated losses of €400 million and €220 million, respectively.
The novel coronavirus is expected to add to the upward pressure on reinsurance rates at the June 1 and July 1 renewals. Pandemic-related claims and the fall in market value of reinsurers’ investment portfolio are both expected to contribute.

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British watchdog enlists 8 insurers in pandemic test case of Business Interruption cover

Jun 2, 2020 | , , , , ,

“We expect the test case to provide guidance for the interpretation of many other business insurance policies that are not in the representative sample,” the FCA said.

The eight insurers asked to take part in the court case were Lloyd’s of London insurers Hiscox, Arch, Argenta and MS Amlin, as well as RSA, QBE, Zurich and Ecclesiastical, the FCA said in a statement.

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Hurricanes may cause more pain for pandemic-hit insurers

Jun 2, 2020 | , , , ,

“What we’ve seen over the past couple of years is an increase of (storm) losses from a frequency and severity perspective,” said Susan Fallon, global head of Property at Zurich Insurance Group.

“There’s an expectation we will see increased rates.”

Lloyd’s of London this month forecast more than $100 billion in underwriting losses from the pandemic in 2020, with those losses coming before the hurricane season even gets going.

The specialist insurance market said the pandemic losses were similar in size to the loss year of 2005 – when Hurricane Katrina hit New Orleans – and 2017 – when Hurricanes Harvey, Irma and Maria hit Florida, Puerto Rico and Texas.

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Insurers’ business interruption U-turn could lead to significant uptake in product,says GlobalData

Jun 2, 2020 | , , , , ,

Ben Carey-Evans, Insurance Analyst at GlobalData, a leading data and analytics company, said “This is a significant turnaround for the industry, which had up to this point been stating that claims were not valid because of pandemic exclusions.In reality, there was no positive outlook for insurers in this dispute. Paying out will cost millions in claims as businesses around the country have been shut down or severely restricted during lockdown. However, not paying out would also have led to reduced consumer trust, with many business owners likely to avoid taking out any form of business interruption insurance in the future.

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