Of Special Interest


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16th November 2014

Newslink Trends: Weekly Insurance Global Analysis

This week, the London Market Group(LMG) published global research in collaboration with The Boston Consulting Group which put in clear, factual perspective, threats to the London Market. Steve Hearn, chairman of the LMG and deputy chief executive of Willis Group Holdings, gave a personal perspective on the research report at a Chartered Insurance Institute(CII) lecture on Thursday which Newslink attended. He stressed that the report was a "Call to Action" and that the facts indicated that the London Market needed to do more to provide local accessability, particularly in developing countries, where its proportion of growth business was small. Pricing was higher in London, and 30 to 40% of existing business was under threat. Hearn also pushed for the need for the Market to speak with one voice in dealing with government and regulators who "had to work with the Market to support the customer." Going forward, improvement in data and analytics was also key.
Meanwhile, GAM looked at the cat bond sector, SNL Financial reviewed last year's Lloyd's Syndicate results, and Fitch analysed the Bermudan market performance in 2013. EY issued a global survey which indicated that insurers needed to communicate with customers more often to build trust levels which were below those of banks.
Insurance Europe said it supported most of revised text of the Insurance Mediation Directive(IMD 2), whilst independent consultants OAC warned on potential gold plating by the Prudential Regulatory Authority(PRA) relating to with-profits business. The Lloyd's Market Association(LMA) invited ceo's of managing agencies to participate in a leadership programme on climate change and the potential impact on the insurance market-past US vice president Al Gore will be presenting.
Conning was acquired by Taiwan-based Cathay Life. Carroll London Markets(CLM) presented on its development with Websure which enabled their Australian parent to access London Market functionality straight through at a local level, and RDT announced it has upgraded its platform to support the MyLicence development in the UK when it launches shortly. Texas Mutual is to widen its use of Guidewire solutions, and Sapiens reported revenue and operating profit increases.
Allied World moved for Latin American Holdings, and EPG Insurance formed a new Lloyd's broker. Discovery bought the 25% remainder of its health insurance joint venture with Prudential, and MetLife launched its FutureLab innovation centre in Singapore. Gallagher acquired twice in the US.
On the results and interim statement front,those announcing included Brit(ceo pleased with third quarter), Catlin(good performance), Enstar(net earnings down), Hiscox(GWP similar to last year), Liberty Mutual(solid result), Novae(strong specialty growth), Randall & Quilter(expecting lower result at end of year), Talanx(on target for earnings forecast), Tokio Marine Kiln(a new branding), and Just Retirement(Defined Benefit growth offsetting individual annuity drop).
Willis appointed Nicholas Aubert, AIG EMEA coo, as ceo designate for the UK, RFIB created a global head of Analytics, and the ABI announced new chairmen for its Life and General Insurance committees.
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global database service on Wednesday and today at www.onlystrategic.com