Insurance news

• CoreLogic raises San Andreas residential risk estimate

  15-11-2016 23:38
  A single powerful earthquake along California's San Andreas
  fault could lead to as much as $289bn in residential damage
  stretching from near Mexico to north of San Francisco, according to
  a new study from CoreLogic.
  The estimate is more than twice as large as
  previous scenarios studied by the catastrophe forecasting company.
  The degree of increase varies with the strength of the tremor,
  CoreLogic said in a study released today.
  Under a scenario involving a quake of 8.3
  magnitude, residential...
  
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• Best tweaks cat inputs for BCAR model in latest draft

  15-11-2016 20:24
  AM Best has put out an updated draft of criteria used in its
  Capital Adequacy Ratio (BCAR) model for US P&C insurers that
  changes previous proposals to consider cat risk as a direct capital
  requirement and shortens the tail of events used to measure capital
  adequacy.
  The revisions are among several made to the previous March 2016
  BCAR draft after a period of market consultation that closed for
  comment at the end of June.
  In a briefing, the ratings agency...
  
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• Three ex-IFED detectives boost Hastings' Specialist Investigations Unit

  15-11-2016 18:05
  
  Hastings Insurance has hired three former police detectives to expand its counter-fraud capabilities and further develop its Specialist Investigations Unit, a dedicated team focused on tackling instances of serious and organised fraud.
  
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• Three ex-IFED detectives boost Hastings' fraud department

  15-11-2016 18:05
  
  Hastings Insurance has hired three former police detectives to its anti-fraud team.
  
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• PRA warns on 'silent' cyber-risk shortcomings

  15-11-2016 17:10
  The UK Prudential Regulation Authority (PRA) has raised concerns
  over "material shortcomings" in the way that underwriters
  manage so-called "silent" cyber risks.
  In a consultation paper released this week (14 November), the
  regulator said firms currently lacked clear strategies and risk
  appetites for managing both affirmative and silent cyber risk.
  Silent cyber risk refers to the exposures contained in
  traditional policies that do not explicitly exclude the cover.
  Despite the acknowledgement of
  
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• Increased uncertainty good for the political risk market

  15-11-2016 17:10
  Heightened global political uncertainty is good news for
  underwriters in the burgeoning political risk insurance market.
  This was the message from senior industry executives and experts
  during a panel discussion on political risk at the Xchanging London
  Market Conference last week (10 November).
  A reduction in risk appetites and heavy re-regulation at major
  banks following the global financial crisis has also driven
  long-term demand and improved the spread of risks being shown to
  underwriters.
  M
  
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• Growth in SME market could offer opportunity for insurers

  15-11-2016 15:55
  
  The UK small and medium-sized enterprises insurance market has continued to grow in light of a growing economy which has facilitated an increase in the number of enterprises and the opportunity to sell commercial insurance.
  
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• UGC embedded value could drive Arch stock higher: JP Morgan

  15-11-2016 14:59
  Embedded value in Arch Capital's mortgage insurance business
  could drive "meaningful upside" in the Bermudian's
  shares after a successful close of its United Guaranty (UGC)
  acquisition, according to JP Morgan equity analysts.
  Arch chairman and CEO Dinos Iordanou said in the company's
  late October earnings call that the $3.42bn deal to buy the
  mortgage insurer from AIG is on course to close in the fourth
  quarter of this year.
  And JP Morgan analyst Sarah DeWitt said that factoring in
  embedded...
  
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• Trump softens stance on Dodd Frank and Obamacare repeal

  15-11-2016 14:59
  US president-elect Donald Trump remains an unknown in so many
  ways that divining what his presidency may mean in specific policy
  areas can be a frustrating exercise at best.
  During his campaign for the Republican Party's presidential
  nomination, the candidate repeatedly vowed to repeal the Affordable
  Care Act, also known as Obamacare, for instance.
  That proposition is widely favoured among Republican lawmakers,
  who have passed dozens of bills to take that step, but to no avail.
  But after a peace
  
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• Republicans' US tax reform may impact insurers

  15-11-2016 14:59
  Tax reform may take centre stage in the first months of a Donald
  Trump presidency, as Republican leaders in Congress exploit their
  party's new executive power by meshing existing legislative
  proposals with the New York billionaire's oft-stated desire to
  cut corporate taxes and eliminate loopholes.
  Trump has espoused slashing the federal corporate tax rate to 15
  percent from the current 35 percent, a move that he says would make
  the nation competitive against the low rates offered in many
  countri
  
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• (Re)insurers advance as equity prices surge on Trump victory

  15-11-2016 14:59
  (Re)insurance stocks enjoyed relatively modest gains amid wider
  US equity market rallies following the election of Donald Trump as
  president last week.
  The Insider 30 composite saw a gain of 2.5 percent between the
  night before the election result (8 November) and market close on
  Friday (11 November). However, this lagged behind other sectors,
  which surged on the promise of reduced regulation and tax cuts.
  Within the peer group, US specialty
  companies were given the biggest boost, rising 6.5 per
  
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• Regulation will prevent Silicon Valley takeover

  15-11-2016 14:59
  Swiss Re chief economist Kurt Karl has said Silicon Valley firms
  are likely form partnerships with insurance companies rather than
  entering the industry themselves due to the prohibitive regulation
  in the sector.
  Speaking at the Xchanging London Market Conference last week (10
  November), Karl said companies such as Google were not willing to
  deal with the regulatory requirements of the industry, and were
  concerned about the reputation risk that comes with insurance.
  He said: "For me the big tech
  
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• MMC moves to replace traditional US pension plan

  15-11-2016 14:59
  Marsh & McLennan Companies (MMC) plans to close its US
  defined-benefit (DB) pension plan at the end of this year and
  replace it with a defined-contribution (DC) scheme, in a move that
  parallels the shutdown of its much larger UK DB plan two years
  ago.
  The broker expects the latest decision to reduce net earnings by
  just $0.01 a share in the current quarter, CFO Mark McGivney said
  in a recent conference call with analysts.
  The move will also freeze...
  
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• Majority of market wants Catlin as Lloyd's chairman

  15-11-2016 14:59
  More than half of Lloyd's managing agents would like to see
  Stephen Catlin named Lloyd's chairman, with an overwhelming
  majority dead set on a chairman with executive insurance
  experience, The Insurance Insider can
  reveal.
  This publication has widely canvassed the market over the past
  fortnight, speaking privately with senior figures at 29 managing
  agents controlling almost two-thirds of Lloyd's capacity,
  ranging from heavyweights to bantamweights.
  Close to a two-thirds majority of managing
  agen
  
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• Lloyd's exodus in focus as chairman search progresses

  15-11-2016 14:59
  The Lloyd's chairman recruitment needs to be viewed in light
  of a perception that the Corporation has unaddressed issues and
  lacks the requisite leadership, according to a broad array of
  senior London market figures that The Insurance
  Insider has spoken to.
  One source, who favoured an executive with (re)insurance
  experience outside of Lime Street, said: "Lloyd's needs to
  take a long hard look at itself."
  He went on: "We need a chairman who is willing to challenge
  the status quo...
  
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• Fosun turns focus to run-off opportunities

  15-11-2016 14:59
  Chinese conglomerate Fosun has revealed it is targeting European
  and possibly Asian run-off assets.
  Fosun CEO Liang Xinjun told Asian Investor that his
  company had already signed agreements with some European insurers
  in deals that are just waiting on regulatory approval.
  In addition, the company is also considering run-off
  opportunities in Asia and the US.
  The strategy shift comes as Fosun looks to grow its investable
  assets by between $5bn and $10bn over the next year.
  This time last year,...
  
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• Fannie Mae looks to double reinsurance counterparties

  15-11-2016 14:59
  Fannie Mae is hoping to see the number of active (re)insurers
  engaging in mortgage risk transfer from the US government-sponsored
  entity (GSE) double at least as it looks to establish a long-term
  market for the business.The vehicle currently has less than 20 active markets that it
  has dealt with on Credit Insurance Risk Transactions (CIRT).Some 16 CIRT deals have now been made between Fannie Mae and the
  private (re)insurance market that cover around $110bn of loans and
  have...
  
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• Combined Argo-Ariel will have $400m+ of third party capital

  15-11-2016 14:59
  Argo will be able to leverage significant fee income from its
  Lloyd's business after the closure of its acquisition of Ariel,
  with a combined $413mn of third party capital supporting syndicates
  1200 and 1910.
  Yesterday (14 November) The Insurance Insider revealed that the
  protracted Ariel sale process was to end with the sale of 100
  percent of the business to Argo .
  Later in the day Argo confirmed that it had struck a deal to acquire
  the Lloyd's (re)insurer ,...
  
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• Carnegie-Brown, Catlin approached for Lloyd's chairman role

  15-11-2016 14:59
  Stephen Catlin and former Marsh Europe CEO Bruce Carnegie-Brown
  have both been approached to sound out their appetite to succeed
  John Nelson as Lloyd's chairman, with a host of predicted
  runners and riders not involved in the recruitment process,
  The Insurance Insider can reveal.
  Industry figures discussed as potential candidates but now ruled
  out include retired Swiss Re CEO Michel Liès, exiting Munich
  Re chief Nikolaus von Bomhard, Talbot chairman Rupert Atkin and
  Zurich's former Asia P
  
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• Broker facilities' days are limited: Hoad

  15-11-2016 14:59
  Broker facilities have limited durability and will not be a
  permanent feature of the market, according to Tokio Marine
  Kiln's head of innovation Tom Hoad.
  Speaking at the Xchanging London Market Conference last week (10
  November), Hoad said while facilitisation had merits that could
  benefit companies, the phenomenon had a limited timeframe, and the
  fragmentation of the structures would open a range of
  opportunities.
  "We may well have them forever, but I don't think
  personally we will have them f
  
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• Autumn Statement to feature next steps for ILS framework

  15-11-2016 14:59
  The UK chancellor's Autumn Statement will provide further
  detail on the provision of the taxation and structural positions to
  make London an insurance-linked securities (ILS) hub,
  The Insurance Insider understands.
  Sources have indicated that the statement, to be published
  alongside the Chancellor's speech on 23 November, will
  reference the risk transformation regulations, which will advance
  the progress of creating an ILS framework in the UK.
  This will include an amendment being made to the Fin
  
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• Claims company launches support offering for brokers

  15-11-2016 14:38
  
  CEC said it has never been more important to ensure compliance
  
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• Chaos for brokers as SSP system breaks down again

  15-11-2016 14:02 via insuranceage.co.uk
  
  The software house has come under fire once more after running into problems for the second time in a week.
  
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• Ex-RSA claims handler handed prison sentence and £37,000 fine

  15-11-2016 13:50
  
  A former insurance claims handler has been ordered by Liverpool Crown Court to pay back £37,000 after being found guilty of illegally passing on customer details to a law firm.
  
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• RSA issues ultimatum to staff over redundancy terms

  15-11-2016 13:43
  
  Union bosses are urging action against RSA after the insurer issued an ultimatum to staff over proposed changes to redundancy terms.
  
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• Fraudulent claims handler ordered to repay thousands of pounds

  15-11-2016 13:05
  
  Fraudulent insurance employee faces longer sentence if he fails to pay
  
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• Lloyd's appoints Vagnone as strategy director

  15-11-2016 13:04
  Lloyd's has named Generali's Paolo Vagnone as its new
  director of strategy and change as the Corporation works to bring
  its executive team back to full strength.
  Vagnone was previously head of global business lines and country
  manager for Italy at the Italian insurer, although it is not clear
  how his role changed following an executive restructure that was
  announced in May.
  He will take on the newly created role of director of strategy
  and change as Lloyd's looks to...
  
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• Berkowitz drops 17% of AIG holdings

  15-11-2016 13:04
  Bruce Berkowitz's Fairholme Fund has decreased its stake in
  AIG by 17 percent, according to the company's latest 13F
  filing.
  The filing showed the fund sold 900,000 shares in the third
  quarter, reducing its total holdings in the carrier to 4.4 million
  shares.
  Based on AIG's closing price yesterday of $64.45, the stake
  would be valued at approximately $2.8bn.
  Fairholme has been steadily shedding its shares in the company
  since June 2013, when its holding peaked at 110 million shares...
  
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• Allied World Global Markets hires FI head

  15-11-2016 13:04
  Allied World's London market and international division has
  appointed Jacqueline Hall-Shaw to head up its financial
  institutions (FI) team.Hall-Shaw, who will become a vice president, will be based in
  London, reporting to senior vice president for professional lines
  Martin Heathfield.She joins Allied World Global Markets from Travelers Insurance,
  where she previously served as head of financial institutions.Prior to that she spent nearly six years with Axis Specialty
  Europe in the financial inst
  
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• AIG sells Japanese life unit

  15-11-2016 13:04
  AIG has sold its Japanese life business AIG Fuji Life Insurance
  Company to FWD Group, as it continues to streamline its operations.
  The deal consideration was not disclosed.
  "Like other actions we've taken this year, the sale of
  AIG Fuji Life makes us a leaner insurer that's better focused
  on the geographies and segments where we have the critical mass and
  expertise to provide tremendous value to our clients," said
  Peter Hancock, AIG president and CEO.
  AIG said it would...
  
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• Jailed ex-RSA claims handler ordered to pay £37,000 by court

  15-11-2016 12:36
  
  Former employee had been sentenced in May to 10 months in prison for fraud.
  
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• Digital Broker Bristol: A week to go

  15-11-2016 12:01 via insuranceage.co.uk
  
  The Digital Broker forum, an Insurance Age event, comes to Bristol for the first time. Sign up today to secure your place.
  
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• InsurTech Futures: What do you know about InsurTech?

  15-11-2016 11:02 via insuranceage.co.uk
  
  We want to find out how brokers use technology to help their businesses. Tell us via our short survey.
  
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• Talanx profits up on improved underwriting

  15-11-2016 10:51
  Third quarter operating profit at Talanx grew 18.9 percent
  year-on-year to EUR585mn ($630mn) following an improved
  underwriting result.
  The operating profit surpassed the analyst consensus forecast of
  EUR495mn, according to Helvea analyst Daniel Bischof.
  The group P&C combined ratio, which includes primary
  insurance and reinsurance, improved by 1.6 percentage points in the
  third quarter to 96.4 percent.
  The development was driven by improved loss ratios in all
  operating segments, the firm sa
  
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• Mildura hailstorm declared catastrophe by ICA

  15-11-2016 10:51
  The Insurance Council of Australia (ICA) has declared a
  catastrophe for damage caused by the severe hailstorm that hit the
  Mildura region of north-west Victoria and the surrounding area last
  Friday (11 November).
  So far, insurers have received around 9,000 claims, with insured
  losses of more than A$20mn ($15mn), the ICA said in a statement
  today.
  The region is heavily dependent on agriculture, and is known
  colloquially as Victoria's Food Bowl, with most of
  Australia's dried fruit, grapes, citrus
  
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• Towergate chosen as accreditation scheme’s insurance provider

  15-11-2016 09:22
  
  Alcumus SafeContractor has over 27,000 contractor members
  
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• Gocompare reveals group most at risk of online hacks

  15-11-2016 08:43
  
  Research follows recent Tesco Bank and Yahoo! cyber breaches
  
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• Man sentenced for trying to defraud LV=

  15-11-2016 08:34
  
  CCTV footage showed he was not even in the car at the time of the collision
  
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• AIG's Anthony Baldwin on bringing women into the boardroom

  15-11-2016 08:03
  
  “If not me, who? If not now, when?” This is the question actor Emma Watson posed as she addressed the United Nations in 2014 on behalf of a campaign that she is fronting known as He For She.
  
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• Legal Update: Football corruption: Clubs must avoid an own goal

  15-11-2016 08:00
  
  Football clubs that fail to prevent bribery may face criminal prosecution.
  
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• Woodruff-Sawyer promotes Barrengos to CEO

  15-11-2016 00:36
  Woodruff-Sawyer & Co. has named Andy Barrengos as CEO,
  effective at the end of this month.
  He replaces Charlie Rosson at the helm of the brokerage firm
  based in San Francisco.
  Barrengos, 52 years old, has worked at Woodruff-Sawyer for two
  decades, the company said in a statement announcing his promotion.
  Rosson had run the firm for eight years by the time his departure
  was made public in September.
  The intermediary also promoted Zac Overbay and Carolyn Polikoff,
  naming Overbay...
  
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• Patriot National sees 'better offer' than $475mn Ebix bid

  15-11-2016 00:36
  Patriot National, the technology and outsourcing services provider
  to the property and casualty sector, is evaluating a "better
  offer" compared with the $475mn bid from Ebix that collapsed
  last week.
  "The rejection of the Ebix deal was plain and simple
  because we had a better offer from someone else," CEO Steven
  Mariano said today on a conference call with analysts. "There
  is still a process going."
  "We continue to look at potential offers that are obviously
  a lot higher than...
  
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