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21st October 2018

Newslink Global Insurance Trends-The Week

This week, US P&C insurers reported that they had more than doubled first half after tax net income compared with 2017. The majority of executives(87%) around the world cited untrained staff as the greatest cyber risk to their business according to a new report from “The Cybersecurity Imperative”. Nine insurance associations across the world wrote jointly to the IASB to suggest a two year delay was needed to implement IFRS 17 successfully, and UK Comprehensive car insurance premiums were up 1% after an earlier downward trend.
The Prudential Regulatory Authority(PRA) and the Financial Conduct Authority(FCA) are to consult on expectations for the management of financial risks from climate change. in a busy regulatory week in the UK, the PRA also published four final Policy Statements on Solvency II, and a Policy Statement headed "Strengthening accountability: Implementing the extension of the SM&CR to insurers", whilst the FCA and The Pensions Regulator(TPR) launched a joint regulatory strategy. In the US, Prudential Financial's SIFI designation was dropped by the FSOC. The International Underwriting Association(IUA) reported an increase of 16% to £26.314bn in gross written premiums for 2017.
The winners of the 2018 ACORD InsurTech Innovation Challenge(AIIC) were revealed, and Applied Systems announced investment from CapitalG bringing access to Google expertise across artificial intelligence, machine learning, and digital marketing. The 2018.2 release of the Guidewire InsurancePlatform was announced, and Greenlight Re Innovations made its third investment around the world in recent weeks-this time in South Africa-based digital insurance platform Click2Sure. Treaty reinsurance went live on London Market's Placing Platform(PPL) to complete the class roll out. The Lloyd's Market Association(LMA) satellite imagery and intelligence service is speeding up assessment and payment of Hurricane Florence and Michael claims, and both AIR Worldwide and RMS estimated Hurricane Michael insured losses. Insurance Australia Group(IAG) licensed the RMS High Definition New Zealand Earthquake Model.
AXA XL received authorisation in principle to move its EU insurance company, XL Insurance Company SE, from the UK to Ireland, and Hannover Re completed its fifth catastrophe bond transaction for clients this year-raising the total issuance volume to $1.5bn in 2018. The Standard Club is to withdraw from underwriting at Lloyd's. Ergo Group is to sell its Russian life book to Rosgosstrakh, and in the UK,
Ardonagh is to sell Direct Group's claims business to Davies Group. Travelers benefitted from lower catastrophe losses in the third quarter. AIG, Allstate, RenaissanceRe, Swiss Re, and Talanx all gave early warning of recent catastrophe losses. There were senior appointments at LV= and StarStone Group.
Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Resource at www.onlystrategic.com