Global Insurance Trends 01.08.2017
This week, the Financial Conduct Authority (FCA) published proposals to extend the Senior Managers and Certification Regime to almost all regulated firms which will impact insurers. The Chartered Insurance Institute (CII) supported the proposals as a “common-sense approach”. The recent Insurance Capital Standard release was criticised by the Association of British Insurers (ABI) as it did not cover internal models and other omissions which did not make it suitable for the UK market. Leading insurance supervisors supported the adoption of Climate-related Financial Disclosures.
Willis Towers Watson highlighted record-breaking ILS issuance in the second quarter, and a Gallagher-sponsored survey looks at the level of preparedness by UK SMEs to respond to a crisis scenario. A UK survey indicated an industry view on the future desired level of the Ogden discount rate, whilst Milliman published a new report on embedded value results for 19 major insurers in Europe.
Allianz AGCS is working with InsurTech start-up Flock to develop digital insurance solutions for the growing drone market, and the German insurers’ CEO stated in Sun City that “Africa is digital by nature”. Aviva and Founders Factory announced the first five startups selected for its FinTech programme, and Synechron reported it was working with 57 financial institutions on Artificial Intelligence(AI)across four continents. Sapiens is to leverage Microsoft’s two new data centres for its cloud-based services in South Africa, and also announced the latest version of its ALIS policy administration suite. Boat Services strengthened its Cat Risk Modelling platform with the integration of TigerEye, and COMBUS became the first Australian modeller to offer risk solutions on Boat Oasis. Meanwhile, Air Worldwide released a severe thunderstorm model for Australia. The Tropics Breeze solution went live across 17 states at Midwest Builders’ Casualty.
The New Zealand Commerce Commission declined Suncorp’s approach for Tower. Ambant said that over £200m in historic loss funds are languishing in TPA and broker accounts, Markel entered into a definitive agreement to acquire State National, and Howden acquired in Singapore. There were senior appointments at Liberty Specialty Markets (LSM) and Markel International.
Second quarter and first half results flowed-they included AIA (record value of new business in first half), Allianz (operating profit up by 23% in second quarter), Chubb (CEO Greenberg highlighted strong underwriting results and record investment income), Everest Re (strong second quarter), Lancashire Holdings (profit up and combined ratio down in second quarter), RenaissanceRe (“good second quarter” said CEO O’Donnell), SCOR (strong first half and launched share buyback program), XL Group (net income zoomed as cat losses dropped-CEO McGavick “pleased with overall results”), and JLT (underlying profit before tax and revenue growth up in first half).
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.comCategory: News