Insurance news

• XL ups annual cost synergies estimate again to $500mn

  07-06-2016 23:07
  XL Group has significantly raised its estimate for cost synergies
  from last year's merger with Catlin from $300mn a year to
  $500mn by year-end 2017.
  The new target, which excludes integration costs relating to the
  deal, is the third upwards revision of cost savings by the company
  since the deal to combine XL and Catlin was announced in January
  2015.
  When the transaction was announced the companies said they hoped
  to reach $200mn in annual synergies, a figure that was...
  
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• UK sees spike in D&O claims: Marsh

  07-06-2016 20:01
  Directors' and officers' (D&O) insurance claims in
  the UK have increased by more than 300 percent since the financial
  crisis, according to data released by Marsh.
  In a report published today (7 June), the broker said that
  between 2005 and 2007 it recorded an average of between 200 and 300
  D&O claim notifications per year, but that number rose by 75
  percent to almost 500 in 2008.
  The number of claims then rose to a peak of 1,685 in 2012....
  
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• Texas hailstorm losses mount

  07-06-2016 20:01
  The Insurance Council of Texas (ICT) estimates that industry
  losses from hailstorms that struck the state in March and April
  have now surpassed $3bn.
  It said that three April hailstorms were set to cost more than
  $2bn. Insured auto and homeowner losses have reached $1.9bn, with
  commercial losses expected to push total insured claims well over
  $2bn.
  The first hailstorm, which struck the state on 12 April, became
  the costliest such event in Texan history, and was followed by two...
  
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• Rival jurisdictions will win in post-Brexit Britain

  07-06-2016 20:01
  Other countries could benefit in the event of the UK voting to
  leave the European Union (EU), as carriers are likely to seek
  jurisdictions with less onerous regulation.
  The warning came in a position paper released by the by
  International Underwriting Association, Lloyd's, and Fidelis
  CEO Richard Brindle last week (3 June).
  The trio said that equivalence of supervision would be demanded
  of London market companies that wanted to trade in the EU after a
  Brexit - and probably in...
  
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• RenRe set to pick up Aon Securities exec

  07-06-2016 20:01
  The most senior London-based executive at Aon Securities, Chris
  Parry, has left the broker-dealer and is expected to shortly join
  RenaissanceRe Ventures, sister publication Trading
  Risk reported last month.
  Parry is set to move from London to Bermuda to join the
  reinsurer's third-party capital management platform.
  The RenRe Ventures team, led by Aditya Dutt, looks after the
  DaVinci Re sidecar as well as the Medici and Upsilon cat bond and
  collateralised reinsurance funds.
  Parry had been with Aon
  
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• Prize indemnity market underwhelmed by Euros demand

  07-06-2016 20:01
  The prize indemnity and sports coverage insurance markets have
  experienced a tepid build-up to the European Football Championships
  as demand proved weak compared to previous major tournaments.
  Underwriting sources told The Insurance
  Insider demand for promotions cover had fallen
  substantially, adding the market had been on a downward trajectory
  for several years.
  Promotion indemnity policies cover losses in the event an offer
  such as discounts or bonuses for a team winning a tournament must
  be p
  
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• PCS Canada fire loss pick at lower end of expected ranges

  07-06-2016 20:01
  The initial industry loss estimate from PCS for the Alberta
  wildfires has come in at the lower end of anticipated claims
  ranges.
  Sister publication Trading Risk
  reported that PCS put industry claims from the disaster at C$4.6bn
  ($3.5bn).
  This is at the lower end of the modelled loss pick of between
  C$4.4bn and C$9.0bn ($3.4bn-$6.9bn) from AIR Worldwide and a
  $3bn-$7bn forecast from Morgan Stanley analysts.
  PCS typically resurveys insurers for loss estimates several
  times before finalising its cl
  
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• No reinsurance strategy change at Citizens: CFO

  07-06-2016 20:01
  Despite a dramatic downsizing of private reinsurance placed by
  Florida's Citizens this year and a major programme restructure
  planned for 2017, the state-backed carrier has not fundamentally
  altered its risk transfer strategy, according to CFO Jennifer
  Montero.
  The insurer has placed just $221mn of new reinsurance limit,
  confirming expectations that it would significantly reduce its
  reinsurance spend after shrinking its portfolio.
  There was also a reallocation of an existing $443.3mn multi-year
  
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• Liiba proposes claims process

  07-06-2016 20:01
  The London & International Insurance Brokers'
  Association (Liiba) has drafted a proposal designed to streamline
  claims processing in the London market, The Insurance
  Insider can reveal.
  Under the proposal, which was created in association with Liiba
  members JLT, Aon, Willis Towers Watson and Marsh, claims of up to a
  yet-to-be-specified amount would all be agreed by the leader on the
  slip.
  The process is still at a very early stage, but would
  fundamentally change the way high-volume, small-va
  
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• Legacy market sees scope for Equitas-style UK EL solution

  07-06-2016 20:01
  Some 44 percent of legacy market participants believe there is
  still scope for existing UK employers' liability (EL) exposures
  to be pooled into a single vehicle for run-off, according to a
  survey conducted by The Insurance
  Insider.
  The majority of respondents to The Insurance
  Insider's annual legacy barometer believed it was
  possible to construct a UK EL legacy vehicle similar to Equitas,
  the run-off company established in 1996 to ring-fence the
  liabilities of thousands of former Names.
  The veh
  
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• JLT Specialty brings in UK PI head

  07-06-2016 20:01
  JLT Specialty's financial lines group has hired Martin Ellis as
  the head of UK professions, effective from 4 July.
  Ellis has more than 30 years' experience in the professional
  indemnity (PI) market, most recently leading the UK PI practice at
  Willis.
  He has also held a number of senior management positions
  throughout his career and was one of the co-founders of specialist
  Lloyd's broker Prime Professions, leading its sale to Willis in
  2013.
  Mark Wood, CEO of JLT's financial lines...
  
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• Homand becomes Ironshore property CUO

  07-06-2016 20:01
  Ironshore has appointed former American International Group (AIG)
  executive Shawn Homand chief underwriting officer of global
  property, the Bermuda-headquartered specialty insurer announced
  today (7 June).
  Homand, who takes over immediately, will oversee Ironshore's
  property underwriting operations and attempt to grow the
  platform.
  Most recently Homand was AIG's property underwriting officer
  for the Americas, where he was responsible for directing
  underwriting activities throughout the US, Canad
  
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• Florida evidence of cat pricing stabilisation: JLT Re

  07-06-2016 20:01
  Rates were off 3.1 percent at the key Florida property
  catastrophe reinsurance renewals, providing further evidence of an
  approaching pricing floor in the sector, according to JLT Re.
  JLT Re's risk-adjusted Florida property catastrophe rate
  on-line index fell by 3.1 percent at 1 June this year, compared to
  reductions of 8.5 percent in 2015 and 17.1 percent in 2014.
  The figures reaffirm that property cat pricing is gradually
  beginning to stabilise, a trend that first emerged at the 1 June...
  
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• Fitch highlights residual market exposure for property writers

  07-06-2016 20:01
  Fitch has warned of the potential impact of residual markets on
  private insurers in catastrophe-exposed states after an event.
  The ratings agency noted that of the 18 Atlantic and Gulf Coast
  US states, 17 maintain a so-called "Fair Access to Insurance
  Requirements" (Fair) plan or a beach and windstorm plan, or
  have arrangements with a state-backed carrier such as Florida's
  Citizens.
  "In the wake of a large loss event, private market insurers
  and policyholders can be called on to provide...
  
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• Epsilon enters PI market with Thistle hires

  07-06-2016 20:01
  Epsilon Group, the owner of Lloyd's broker ES Risks, is set
  to enter the professional indemnity (PI) market for the first time
  after hiring a team of underwriters from JLT-owned managing general
  agency (MGA) Thistle.
  The Insurance Insider has learned that
  Arch will provide the paper for the venture, which will see Epsilon
  Group write PI business through its MGA arm Euna.
  The MGA will target gross written premiums of between £12mn
  and £15mn in the first three years.
  Euna...
  
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• Aon loses criminal cases against its former Bolivian CEO

  07-06-2016 20:01
  Broking giant Aon has lost a series of criminal cases it brought
  against the former CEO of its Bolivian operation amid allegations
  of fraud and self-dealing.
  The broker accused Jose Luis Contreras Cabezas of moving funds
  into his own company, Grupcor, to purchase Bolivian offices and car
  parking spaces and then renting the space back to Aon Bolivia for
  his own gain.
  Aon subsequently brought a $20mn civil case in the US, alleging
  the former executive had "destroyed" its retail...
  
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• AIG burned by record EUR360mn M&A insurance claim

  07-06-2016 20:01
  American International Group (AIG) is facing a EUR50mn ($72mn)
  net loss from a record EUR360mn transactional liability claim,
  The Insurance Insider has learned.
  Sources told this publication AIG has 100 percent of the primary
  layer of the placement, equivalent to EUR30mn of the loss, which
  was written in 2013 by the company's German operation.
  The carrier is also on a secondary excess layer, with an
  exposure of EUR20mn.
  At the time, it is understood AIG did not have reinsurance for...
  
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• AGCS expands North American cyber practice

  07-06-2016 20:01
  Allianz Global Corporate & Specialty (AGCS) has promoted Emy
  Donavan to regional head of cyber and US deputy head of errors and
  omissions, alongside three new recruits to its North American cyber
  team.
  Donavan, who was previously national practice leader for cyber,
  technology, media and specialty professional indemnity (PI), will
  continue to oversee these classes of business as part of her new
  role.
  Laura Burke, Daniel DeLoof and Lester Shearn have also joined
  the team.
  Burke has joined as e
  
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• Jobs under threat at One Commercial from Manchester closure

  07-06-2016 18:21
  
  The claims office is at risk and 15 staff have entered a 30-day consultation period.
  
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• Insurer launches UK's 'first driverless car policy'

  07-06-2016 17:42
  
  Adrian Flux designs policy for consumers whose cars already have driverless features, such as auto-parking and ABSThe company Adrian Flux has launched what it claims to be the UK’s first personal driverless car insurance policy.The policy is designed for consumers who already have driverless features in their cars, such as self-parking, or are thinking of buying a car with autopilot features. Fully self-driving cars are not expected to be on the road until 2020 at the earliest, when Volvo
  
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• Aspen taps Allied World for US cyber team

  07-06-2016 17:00
  Aspen has hired Josh Ladeau and three other underwriters from
  Allied World to build out its US-based cyber team, it announced
  today (7 June).
  Ladeau, previously practice lead for privacy and network
  security at Allied World, will become senior vice president for
  cyber risk at Aspen US Insurance, reporting to Brian Flynn, head of
  cyber risk.
  Cyber underwriters Jeff Bores, Mike Colford and Bobby Bianconi
  have also recently joined Aspen US Insurance from Allied World.
  The hires will contribute to..
  
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• Mike Lawton moves to Travelers

  07-06-2016 16:53
  
  Former chief executive of Towergate’s broker division takes vice president of business insurance role at Travelers Europe.
  
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• Allianz to offer cyber consultation after new deal

  07-06-2016 16:00
  
  Allianz has partnered with IT Governance, a global cyber security consultancy, to offer free online cyber risk assessment.
  
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• Insurers lack a ‘culture of innovation’, research says

  07-06-2016 15:45
  
  Half of the members of risk managers’ association Airmic believe their insurers are “hardly innovative” or “not innovative at all” in developing relevant cover, according to research by Airmic.
  
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• Airmic publishes clause ‘to protect’ customers that breach fair presentation rule

  07-06-2016 15:45
  
  Airmic has published a sample clause to be inserted into insurance policies which it claims will protect customers who innocently breach the duty of fair presentation introduced by the Insurance Act.
  
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• Airmic publishes clause ‘to protect’ against breach of fair presentation rule

  07-06-2016 15:45
  
  Airmic has published a sample clause to be inserted into insurance policies which it claims will protect customers who innocently breach the duty of fair presentation introduced by the Insurance Act.
  
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• Airmic 2016: Risk managers concerned about broker conflicts of interest Airmic survey finds

  07-06-2016 15:45
  
  Risk managers are increasingly worried about broker conflicts of interest and broker-controlled capacity according to the annual Association of Insurance and Risk Managers survey.
  
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• Airmic 2016: Lack of innovation in insurance tops list of concern for risk managers

  07-06-2016 15:45
  
  Lack of innovation in the insurance market tops the list of concerns for risk managers, according to a survey of Airmic members that asked them to assess the indusrance industry.
  
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• Airmic 2016: Insurance lack of innovation tops list of concern for risk managers

  07-06-2016 15:45
  
  Lack of innovation in the insurance market tops the list of concerns for risk managers, according to a survey of Airmic members that asked them to assess the indusrance industry.
  
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• Airmic 2016: Cyber is biggest risk for insurance buyers

  07-06-2016 15:45
  
  Cyber has ranked as the biggest area of concern for risk managers, according to a survey of Airmic members.
  
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• Market is 'defying gravity' on rates and returns: Pryce

  07-06-2016 15:04
  Carriers that manage to deliver any sort of return during the
  current soft market are "defying gravity", according to
  QBE Europe CEO Richard Pryce.Speaking on a leadership panel chaired by veteran broadcaster
  Jonathan Dimbleby at the Airmic conference in Harrogate today (7
  June), Pryce said carriers were struggling to deliver adequate
  returns due to prolonged depressed rates.
  The executive also warned that investors would not settle for
  returns on equity at current levels.
  He said cutting operat
  
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• Trust Re profit ticks up in Q1

  07-06-2016 13:08
  First quarter pre-tax profit at Bahrain-based Trust Re increased
  7.7 percent on the prior-year period to $8.4mn, as an improved
  investment result offset weaker underwriting performance.
  Net underwriting profit fell 27.7 percent to $3.4mn, while net
  earned premium for the quarter decreased by 20.7 percent to
  $57.5mn. Gross written premium in the quarter fell 14.9 percent to
  $174.0mn.
  Net claims also fell 23 percent to $37.5mn, while operating
  expenses stayed flat at $5.4mn.
  At a group level, the
  
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• RLI names transportation president

  07-06-2016 13:08
  RLI has promoted head of truck underwriting Dan Meyer to president
  of the transportation division, it announced yesterday (6 June).
  Meyer has been a member of the RLI transportation division for
  16 years, spending the last 10 as the head of the truck
  underwriting unit.
  He replaces Dave Dunn, who recently departed the company to
  pursue other opportunities.
  "For the past 16 years, Dan has made significant
  contributions to the growth and profitability of the RLI
  transportation division," said RLI..
  
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• Longer wait for implementation of ILS legislation

  07-06-2016 13:08
  The timeline for implementing legislation to attract
  insurance-linked securities (ILS) business to the UK is set to take
  longer than expected due to increased industry interest, according
  to the CEO of Scor's Paris-London hub Malcolm Newman.
  Speaking to The Insurance Insider,
  Newman, who is also sponsor of the London Market Group (LMG)'s
  ILS Working Group, said the UK Treasury was pleased with the
  response to the government's consultation on attracting ILS
  business, but said it would take longer
  
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• Helios releases profit forecasts

  07-06-2016 13:08
  AIM-listed Names-backed Lloyd's carrier Helios Underwriting has
  acquired additional capacity for its investors on the company's
  2014 and 2015 underwriting portfolios.
  In an announcement released today (7 June) Helios forecast a
  9.22 percent or £3.17mn profit on £34.4mn ($49.6mn) of
  capacity for the 2014 year of account.
  The forecast is an incremental 0.29 percentage point improvement
  from the 8.93 percent profit forecast issued on 1 January. It also
  outperforms the Lloyd's market ave
  
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• Fitch: South German flood claims could hit EUR1bn

  07-06-2016 13:08
  Total insured losses from the recent flooding in Germany could
  reach EUR1bn ($1.1bn), according to estimates from Fitch Ratings.
  Insurers with high market shares in the homeowners' and
  motor sectors are likely to see the biggest impact, the rating
  agency said. These include public sector insurers, especially
  Versicherungskammer Bayern and SV SparkassenVersicherung, which are
  active in the most affected regions.
  Several days of heavy rainstorms in late May and early June led
  to major riverine and
  
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• Everest Re adds annuities exec Graf to board

  07-06-2016 13:08
  Everest Re has elected retirement and annuity insurance
  specialist John Graf to its board of directors.
  Graf's most recent executive role was as chairman and CEO of
  annuity and life insurance specialist Forethought Financial Group,
  which he stepped down from in 2014 following its acquisition by
  Global Atlantic.
  He remains vice-chairman at Global Atlantic, the insurance
  operation that spun out of Goldman Sachs.
  Before joining Forethought in 2006 Graf served as vice chairman
  on Axa Financial's boa
  
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• Australian storm losses pass A$56mn

  07-06-2016 13:08
  The Insurance Council of Australia (ICA) said that insured
  losses from storms in eastern Australia have reached A$56mn
  ($41.6mn), up from an A$38mn ($28mn) estimate released yesterday (6
  June).
  The catastrophe zone has now expanded to include Victoria's
  east coast and Tasmania's northern and eastern coastlines.
  Insurers have received 14,500 claims resulting from the severe
  weather, which killed at least three people and led to thousands of
  evacuations, the council said.
  The organisation declared
  
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• Aviva's Andy Briggs to replace Paul Evans as chair of ABI

  07-06-2016 12:34
  
  Andy Briggs, CEO of Aviva UK Life and chairman of Aviva Global Life, has been nominated to take up chair of the Association of British Insurers.
  
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• ABI names new chairman to replace Paul Evans

  07-06-2016 12:27
  
  Aviva UK life chief executive Andy Briggs will replace AXA’s Paul Evans as ABI chairman in October.
  
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• Almost two thirds of firms don't have cyber insurance - survey

  07-06-2016 12:20
  
  Nearly 64% of firms don’t have any cyber insurance, according to research by email security company Mimecast.
  
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• Gallagher launches model-backed terrorism cover

  07-06-2016 12:05
  
  Arthur J Gallagher has launched a risk model-backed terrorism insurance product supported by capacity from London market underwriters.
  
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• Profits soar at Simply Business for 2015

  07-06-2016 11:56
  
  Turnover rises by nearly one-third at online broker.
  
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• Adrian Flux claims first with launch of driverless car policy

  07-06-2016 11:27
  
  Broker says policy is to support UK in its bid to be at the forefront of self-driving technology.
  
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• Esure mulls Gocompare demerger

  07-06-2016 11:09
  
  Insurer considers split and appoints Matthew Crummack as CEO of the aggregator.
  
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• Liability claim notifications four times higher than pre-recession

  07-06-2016 10:37
  
  UK professional and management liability insurance claim notifications have risen steadily over the last decade and remain four times higher than pre-financial crisis levels, according to a report by Marsh.
  
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• Go Compare could be sold by Esure

  07-06-2016 10:35
  
  Potential demerger on the cards for price comparison website whose ads feature opera singer Gio ComparioThe world’s most annoying opera tenor could soon be singing solo after the insurer Esure said it was considering splitting off its Go Compare price comparison site.Esure took full control of Go Compare in December 2014 when it bought the 50% it did not own for £95m, valuing the business at £190m at the time. After a year in Esure’s ownership, Go Compare is on track for
  
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• Unrealised gains boost BP Marsh's bottom line

  07-06-2016 10:14
  UK-headquartered insurance venture capitalist BP Marsh reported a
  doubling of its pre-tax consolidated profit for the year to 31
  January, 2016, but most was derived from unrealised gains on
  revaluing its equity investment portfolio.
  Pre-tax profits rose from £5.9mn in 2015 to £10.7mn
  this year, £10.3mn of which came from the unrealised gains.
  Consolidated profit after tax was £8.7mn, up 76 percent on the
  prior year.
  The group also declared a final dividend of 3.42p per sh
  
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• Esure could split from Gocompare as review announced

  07-06-2016 09:31
  
  Esure will examine a possible demerger from its price comparison site Gocompare as part of a strategic review.
  
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• BP Marsh full year profit almost doubles

  07-06-2016 09:07
  
  Broker-focused venture capital group BP Marsh reported consolidated net profit of £8.7m for the year to January, almost double the £4.9m it reported a year ago.
  
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