Insurance news

• ‘Complementary’ Sterling deal tipped to boost Covéa’s growth ambitions

  02-12-2014 20:12
  
  Katie Marriner Postonline
  
  
  Insurer edges closer to top 20 insurers with acquisition of HNW specialist
  
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• Dual pricing looks certain to come under FCA spotlight warns ABI chairman

  02-12-2014 20:03
  
  Francesca Nyman Postonline
  
  
  Evans equates practice to bank teaser rates currently being scrutinised by FCA
  
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• Zenkyoren looks to add $200mn of peak-layer cat bond cover

  02-12-2014 19:24
  Zenkyoren is seeking to raise new peak-layer cover from a $200mn
  Nakama Re issuance, sister publication Trading
  Risk reported last month.
  The deal is the Japanese mutual insurer's second cat bond
  transaction of the year. It covers Japanese earthquake risk on an
  indemnity basis and is split into two tranches, both with a target
  size of $100mn and expected coupon of below 300 basis points (bps),
  sources said.
  The first class of notes has an attachment point of $16.6bn
  (1.95tn...
  
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• War market agrees to re-underwrite deals at lower prices

  02-12-2014 19:24
  Aviation war insurers are renewing some risks on expiring terms
  despite a year in which the market's loss ratio has soared well
  north of 1,000 percent, The Insurance
  Insider understands.
  War policies that were written between August and October are
  also being ripped up and rewritten at the urging of the
  brokers.
  "The war market has completely collapsed over the last few
  weeks," one underwriter said.
  Underwriting sources said that the Civil Aviation Administration
  of China and Lufth
  
  Read more

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• Wafer reunited with Berger at Third Point Re

  02-12-2014 19:24
  Tom Wafer is to reunite with his former colleague John Berger at
  Third Point Re, The Insurance Insider can
  reveal.
  According to sources, the former Alterra and Harbor Point
  executive has signed up with the hedge fund reinsurer and will
  initially commute between the US and Bermuda.
  Wafer was most recently working on his own hedge fund reinsurer,
  Golub Capital Re, before pulling the venture in August because of
  deteriorating market conditions.
  Although his exact position at Third Point Re...
  
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• Trust Risk pursuing AmTrust for EUR97mn in Italian arbitration

  02-12-2014 19:24
  AmTrust Europe's former Italian medical malpractice broker
  Trust Risk Group is pursuing the insurer for EUR97mn in Italian
  arbitration proceedings following an acrimonious breakdown in the
  exclusive distribution arrangement between the two companies.
  The news came in an ongoing UK Commercial Court dispute brought
  by the US insurer's European subsidiary against Trust Risk
  Group, which is owned and run by Antonio Somma.
  In an earlier exclusive interview with The Insurance
  Insider, Somma sa
  
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• Quindell seeks damages following Gotham suit

  02-12-2014 19:24
  Embattled UK insurance outsourcing firm Quindell appeared in the UK
  High Court last month to demand defamation damages from Gotham City
  Research LLC.
  Gotham, a secretive research company, published a report in
  April that led to over £900mn being wiped off the firm's
  AIM-listed share price in one day. It is thought to have profited
  from the fall in Quindell's share price.
  Quindell immediately sued for defamation in the UK and won
  judgment after Gotham declined to submit a defence....
  
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• PRA consults on new regime targeting senior insurance execs

  02-12-2014 19:24
  UK regulator the Prudential Regulation Authority (PRA) has
  issued a consultation paper on the introduction of a new regime
  that would subject senior insurance managers to more stringent
  supervision.
  In the document, published on 26 November, the PRA said that
  senior executives who were effectively running insurers, or who had
  responsibility for key functions, must demonstrate "integrity,
  honesty and skill".
  "[The regime] acknowledges the responsibility and
  accountability of these
  
  Read more

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• Pool Re looks to traditional markets for commercial retro support

  02-12-2014 19:24
  UK government-backed terrorism mutual Pool Re will buy around
  £1.5bn in private market retrocessional protection for the
  first time, using the traditional reinsurance market for support,
  The Insurance Insider understands.
  Last month, major changes were negotiated to the UK mutual's
  20-year relationship with the UK government. These included
  permission from the UK Treasury to purchase retrocessional capacity
  from the private market, with a view to having cover in place on 1
  March 2015.
  A
  
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• Marsh in major terror facility expansion

  02-12-2014 19:24
  Marsh is poised to significantly expand its existing terrorism
  and political violence facility into a full-blown placing mechanism
  that will handle the majority of its book, The
  Insurance Insider can reveal.
  The $500mn-limit structure that London market players are
  currently being invited to sign up to will see the following market
  bound to accept 90 percent of the most competitive lead
  market's terms.
  Leaders are determined via a competitive quoting process
  conducted between five potential
  
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• Marsh drops client rather than risk sanctions

  02-12-2014 19:24
  Marsh has resigned its position as the insurance broker for
  Italian airline Neos because it was unwilling to handle a 2012
  claim relating to a flight to Cuba, The Insurance
  Insider can reveal.
  The big three broker recently won the account from Willis only
  to tell the airline that it could not handle the open 2012 claim
  because of US trade and economic sanctions against Cuba.
  Sources said that Willis agreed to handle the claim and has
  resumed the servicing...
  
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• Investors divide on RenRe and Platinum

  02-12-2014 19:24
  P&C (re)insurance stock performance improved in November as our
  index of publicly listed carriers - The Insider 30 - traded up by
  2.1 percent. The increase was powered by our composite of global
  reinsurers, which made an average gain of 4.43 percent during the
  month, while shares in short-tail specialists fell by 4.36 percent
  on average.
  Platinum's share price leapt by 18.43 percent in
  November, as investors welcomed RenaissanceRe's $1.9bn agreed
  approach for the company (see page 14
  
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• Houlder accuses sister broker of fraud in Hyundai negligence dispute

  02-12-2014 19:24
  Houlder Insurance Services Limited (Houlder London) has accused
  an affiliated company in Hong Kong of fraud in a messy $9mn
  negligence case brought against the London market intermediary in
  the UK Commercial Court.
  Hyundai Fire & Marine Insurance Company is suing the
  established Lloyd's broker and its sister company Houlder
  Insurance Brokers Far East Limited (Houlder Far East) for
  negligence, after the Korean carrier was unable to claim on the
  reinsurance of a refund guarantee because th
  
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• Brisbane insured storm losses grow

  02-12-2014 19:24
  Queensland insurer RACQ is set to hit the bottom layer of its
  reinsurance programme following the 27 November hailstorm in
  Brisbane.
  RACQ has notified its reinsurers of a small loss to the bottom
  layer of its cat treaty, which attaches at A$50mn ($43mn), with
  simple market share analysis implying a total loss that could top
  A$400mn.
  The excess-of-loss reinsurance programmes purchased by the three
  major Australian insurers - Suncorp, IAG and QBE - are unlikely to
  be touched by an...
  
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• Biggest airline negotiates 10% rate cut

  02-12-2014 19:24
  The Civil Aviation Administration of China (CAAC) has renewed
  its all-risk treaty with a significant rate reduction despite a
  major loss-making year for insurers, The Insurance
  Insider can reveal.
  Underwriting and broking sources said that in 2014/15 CAAC,
  which has the biggest airline contract in the world by fleet value,
  will pay lead premium of roughly $70mn - in line with 2013/14.
  This is despite exposure growth of around 10 percent, with the
  fleet value ballooning to $115bn. "The aviat
  
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• Amlin spends $29mn on Leadenhall buy-in

  02-12-2014 19:24
  Amlin will pay an estimated $29.1mn (£18.1mn) to take
  another 35 percent share in London-based fund manager Leadenhall
  Capital Partners, bringing its total stake to 75 percent.
  The payment will be spread over three years, with the second two
  instalments contingent on Leadenhall's performance, Amlin
  disclosed in a presentation made to analysts last month.
  Most of the consideration will be paid in cash with 10 percent
  offered as Amlin shares. Numis analyst Nick Johnson calculated that
  thi
  
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• Ace explores fresh marine restructure

  02-12-2014 19:24
  Global P&C insurer Ace is considering merging its major
  offshore energy and marine whole account reinsurance treaties at 1
  January, again running the risk of irking its reinsurers,
  The Insurance Insider can reveal.
  Offshore energy excess-of-loss (XoL) capacity to
  cover lead line sizes is tough to come by in the offshore market,
  and some marine reinsurers will be reluctant to see the exposures
  find their way into the whole account marine treaty.
  Underwriting sources have said that Munich Re,
  
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• Ace and AIG among final Fireman's Fund bidders

  02-12-2014 19:24
  The sale of Fireman's Fund's $750mn-premium personal
  lines business is in its final stages, with Ace, AIG and AmTrust
  among those to submit binding offers, The Insurance
  Insider revealed late last month.
  Investment banking sources have talked about Ace as a
  frontrunner in the sales process for the US-based Allianz
  subsidiary ever since Goldman Sachs was handed the sell-side
  mandate in September.
  One source speculated that the overall valuation of the deal is
  likely to top $800mn and coul
  
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• ABI, LMA to give evidence on UK insurance law reforms

  02-12-2014 19:24
  The Association of British Insurers (ABI) and the Lloyd's
  Market Association (LMA) are due to give evidence on the Insurance
  Contracts Bill at a special public bill committee meeting on 3
  December.
  The meeting is a vital step in the progression of the bill. If
  passed, the bill aims to reform certain aspects of the 1906 Marine
  Insurance Act, which supports much of English insurance law.
  Proposed changes include the introduction of a duty of
  "fair presentation", meaning the policyhol
  
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• 44% of insurers would become insolvent in 'double hit' scenario: Eiopa

  02-12-2014 19:24
  The European Insurance and Occupational Pensions Authority
  (Eiopa) has estimated that almost half of insurers would fail to
  maintain a sufficient level of capital under the most severe
  "double hit" stress scenario.
  Eiopa's latest stress test showed that insurers would be
  vulnerable to a double-hit scenario of low interest rates combined
  with a sharp reversal in asset prices - with only 56 percent
  remaining sufficiently capitalised.
  The test also showed that 24 percent of insurers w
  
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• ABI 2014 Motor Conference round-up

  02-12-2014 19:13
  
  Stephanie Denton Postonline
  
  
  All the big stories from the ABI motor conference.
  
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• Editor's comment: The regulation pantomime

  02-12-2014 19:01
  
  Stephanie Denton Postonline
  
  
  As we head into the pantomime season, it seems the insurance market’s Sleeping Beauty has awoken – and she means business.
  
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• PRA senior insurance managers regime sparks fears of bank-like regulation

  02-12-2014 18:49
  
  Katie Marriner Postonline
  
  
  Consultation reveals plan for more stringent controls on senior staff
  
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• ABI boss Evans urges fraud task force to take on CMCs

  02-12-2014 18:32
  Callum Brodie Postonline
  
  
  The Association of British Insurers has joined member firms in welcoming the government’s decision to launch a fraud task force, but claimed it must tackle claims management companies if it is to be deemed a success.
  
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• Paul Evans: Industry should expect FCA to probe new customer discounts

  02-12-2014 18:00
  ABI chairman says industry still has features that promote customer distrust
  
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• Insurers urged to avoid repeat of credit hire ‘debacle’ in future FCA reforms

  02-12-2014 18:00
  
  Callum Brodie Postonline
  
  
  Association of British Insurers chairman Paul Evans has called on member firms to “not wait until the last possible moment” to act on expected regulatory interest around introductory offers for new customers.
  
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• Xchanging-Agencyport integration delayed by further watchdog probe

  02-12-2014 17:44
  The UK Competition & Markets Authority (CMA) has decided to
  put Xchanging's acquisition of Agencyport Europe forward for a
  further review, delaying the integration of the businesses by at
  least six months.
  The outsourcing services firm announced the CMA's intention
  to investigate the takeover back in October.
  Xchanging paid £64.1mn to acquire the European operations
  of the US insurance software company on 4 July 2014.
  As a result of the takeover, Xchanging will gain an additiona
  
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• Hastings-Bass to retire from Gallagher

  02-12-2014 17:40 via insuranceage.co.uk
  Gallagher chairman of international development, John Hastings-Bass, is stepping down in January.
  
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• C-suite - Insurer: Scaling the mountain of bad press

  02-12-2014 17:18
  
  Amanda Blanc, chief executive, Axa Commercial Lines and Personal Intermediary Postonline
  
  
  What can the industry do to quell the forces of negative sentiment?
  
  Read more

• Government to launch MedCo whiplash medical reporting portal on 1 April

  02-12-2014 17:14
  Only medical reports sourced from MedCo will be accepted as evidence in support of whiplash claims
  
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• Roundtable: Customer retention: Holding on to customers in the aggregator age

  02-12-2014 17:01
  
  Stephanie Denton Postonline
  
  
  With price comparison sites making customers more price-focused than ever, how can insurers ensure they stand out for other reasons and also improve their retention rates?
  
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• MoJ’s Grayling outlines 1 April start for whiplash portal MedCo

  02-12-2014 16:08
  
  Jonathan Swift Postonline
  
  
  The new regime to accredit and distribute work to medico legal firms will go live on 1 April 2015 it was announced today.
  
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• CMCs face new regulation after MoJ sets up Hertzell-led fraud task force

  02-12-2014 15:45
  
  Jonathan Swift Postonline
  
  
  The Law Commissioner David Hertzell, pictured, is to chair a new government fraud task force that could lead the way for greater regulation of claims management companies.
  
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• No amendments added to 'fundamental dishonesty' Bill in Commons reading

  02-12-2014 15:15
  
  Callum Brodie Postonline
  
  
  The Criminal Justice and Courts Bill received no further amendments during its latest reading in the House of Commons yesterday, despite criticism from the shadow justice minister relating to clause 45 on fundamental dishonesty.
  
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• Hastings-Bass to retire from AJG

  02-12-2014 14:54
  John Hastings-Bass is set to retire from his roles at AJ Gallagher
  International, The Insurance Insider has learned.
  Hastings-Bass is chairman - international at AJ Gallagher
  International and chairman of its energy venture Alesco.
  Hastings-Bass took over the role of chairman - international in
  September 2014 and was charged with reshaping AJG's operations
  in Canada, the Caribbean, Latin America, Asia and Scandinavia.
  Prior to that he was chairman of international development at
  the firm.
  Fo
  
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• Review of the Year: Legal

  02-12-2014 14:50
  
  Mairi MacDonald Postonline
  
  
  Grabbing the headlines in the legal sector this year were M&A activity, closer ties between insurers and law firms and the ongoing fallout of civil justice reforms. Key figures from the sector give their views on 2014
  
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• John Hastings-Bass to retire from AJG

  02-12-2014 14:27
  John Hastings-Bass is set to retire from his role as chairman of
  international development at US-based broker AJ Gallagher (AJG),
  The Insurance Insider has learned.
  In an internal message seen by The Insurance
  Insider, CEO David Ross said that Hastings-Bass would
  be stepping down in early January 2015.
  In September 2014, Hastings-Bass took on a new role as
  international chairman, in which he worked to shape AJG's
  operations in Canada, the Caribbean, Latin America, Asia and
  Scandinavia.
  He al
  
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• MP moots option of second CMA review into motor insurance

  02-12-2014 14:24
  
  Jonathan Swift Postonline
  
  
  A Conservative MP has raised the prospect of a second Competitions and Market Authority review into the motor insurance sector after the next election.
  
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• Legal Update: Autonomous Vehicles: Motor evolution is imminent

  02-12-2014 14:08
  
  Nick Rogers, partner, BLM Postonline
  
  
  Nick Rogers explores the coming changes to insurance that driverless cars will bring
  
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• Penny Black’s Insurance Week - 4 December

  02-12-2014 14:03
  
  Penny Black Postonline
  
  
  There is nothing like adversity to bring people together, especially when it is being played out in both the national media and the insurance trade press.
  
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• Penny Black's Social World – Hugh Bonneville: Risk assessor?

  02-12-2014 13:58
  
  Tony Dowding Postonline
  
  
  Hugh Bonneville, best known for his roles as Lord Grantham in Downton Abbey and BBC head of values Ian Fletcher in W1A, has taken on a new role. In his latest film, Paddington – from the producer of the Harry Potter series – Bonneville plays Mr Brown, a risk assessor.
  It’s not often that risk assessment appears as a subject in a major motion picture, so Tony Dowding went to talk to Hugh about films, risk ass
  
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• Market responds to Covéa buying Sterling

  02-12-2014 13:54 via insuranceage.co.uk
  Firms hopeful the deal will not have a detrimental impact.
  
  Read more

• Claims Club News: Connected-home devices could cut claims costs

  02-12-2014 13:44
  
  Francesca Nyman Postonline
  
  
  Insurers can proactively reduce their claims costs by encouraging the uptake of connected-home devices, according to Ninety Consulting’s Geoff Knott.
  
  Read more

• Claims Club News: Insurance implications of automated cars depend on level of human interaction

  02-12-2014 13:40
  
  Francesca Nyman Postonline
  
  
  The extent of human interaction is one of the biggest challenges companies face in the race to develop driverless cars.
  
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• Claims Club News: Periodic payment orders tipped to make up a third of insurers’ liabilities

  02-12-2014 13:35
  
  Francesca Nyman Postonline
  
  
  Periodic payment orders could account for a third of insurers’ future liabilities amid increasing frequency in bodily injury claims, according to KPMG non-life actuarial partner David Brown.
  
  Read more

• XL to offer standalone terrorism cover amid Tria uncertainty

  02-12-2014 13:33
  Global carrier XL is set to offer standalone terrorism coverage in
  the US ahead of the impending expiry of the Terrorism Risk
  Insurance Act (Tria), the firm announced yesterday (1 December).
  XL said that the policy was aimed at helping US businesses
  address potential gaps in their terrorism coverage before the
  $100bn taxpayer-funded government backstop expires.
  It will offer limits of up to $100mn and cover business
  interruption, loss of rental income and radiological
  contamination.
  Tria is curr
  
  Read more

• Career development: Covéa commercial claims team wins customer service accreditation

  02-12-2014 13:24
  
  Mark Sands Postonline
  
  
  Covéa has obtained the Institute of Customer Service’s Service Mark accreditation for commercial claims.
  
  Read more

• Market Moves - 4 December 2014

  02-12-2014 13:16
  
  Mark Sands Postonline
  
  
  All the latest job moves in the insurance market.
  
  Read more

• ABI urges government to increase flood defence spending further

  02-12-2014 13:15
  Insurer trade body notes £500m gap in funding
  
  Read more

• Costa Concordia loss swells by another $57mn

  02-12-2014 13:11
  The ground-up loss to the reinsurance treaty of the
  International Group of protection and indemnity (P&I) clubs
  from the Costa Concordia sinking has increased by another
  $57mn to just under $1.5bn, The Insurance
  Insider can reveal.
  Carriers on the programme were notified yesterday (1 December)
  that the claim has risen from $1.436bn to $1.493bn as further
  provisions were made for clean-up costs, sources said.
  This follows a $250mn deterioration to the P&I loss reported
  in July, taking the
  
  Read more

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