Global Insurance Trends 04.04.2017
By Douglas Shillito
This week, Brexit was the main media topic as Article 50 was invoked by the UK Prime Minister. Lloyd’s took the opportunity to declare that it had chosen Brussels as its European location, at the same time as announcing its 2016 results-net profit was maintained, but only through better investment returns and a foreign exchange boost-the combined ratio worsened and there is a need to improve underwriting and continue the push to reduce the cost of doing business. The Association of British Insurers (ABI), The British Insurance Brokers’ Association (BIBA), and EY also spoke about the potential implications of Brexit and actions that needed to be taken.
Allianz Global Corporate & Specialty analysed 100,000 claims for its new report-“Global Claims Review: Liability in Focus”, and a AXA IM survey of 122 insurers’ CIOs confirmed that low interest rates and regulation remain the two most important challenges with regards to their investment portfolios. Insurance Europe issued a paper on the importance of financial literacy, and Standard & Poor’s looked at major issues facing European insurers. A Swiss Re sigma report indicated 2016 global economic losses from natural catastrophes of $175bn with $54bn insured, whilst Lloyd’s and Arup launched a new framework to help city officials and insurers improve infrastructure resilience. The International Underwriting Association (IUA) said that the UK discount rate calculation must move away from index-linked government bonds, as discussions began between The Ministry of Justice and the industry.
Accenture new research showed that Artificial intelligence and the internet of things now account for almost half of the total investment in InsurTech startups globally. Slice Labs said it had completed an on-demand pay per use rideshare app, and SVIA announced the launch of the InsurTech Innovation Lab in Silicon Valley. AIA selected Eagle Investment Systems’ data management platform to establish an Investment Book of Record. Duck Creek digital engagement solutions were selected by SECURA in the US, and Insurance Corporation of British Columbia (ICBC) successfully implemented Guidewire PolicyCenter. Advent Claims launched Advent Law in a link up with lawyers The Clarke Partnership, and the PPL board announced a change in the delivery plan. Chubb’s Ignite online platform was unveiled for brokers in the UK and Ireland, and Zurich reported 91% growth through its Ztrade UK SME etrading platform last year.
Standard Life finalised terms to sell its Hong Kong business to its Chinese joint venture, and Zurich is to exercise an option to redeem $1bn of subordinated debt. Novae Group entered into a major quota share agreement with Fidelis Insurance Bermuda (FIBL), and THB, CNA Hardy and leading cybersecurity specialist Waterfall Security Solutions entered into a partnership. ProTucket was formed specifically to provide run-off portfolio transfer solutions following new Rhode Island legislation, which could have a wider impact across US run-off books. Willis Towers Watson Securities was launched-it was previously known as Willis Capital Markets & Advisory (WCMA). There were senior appointments at ERS, Manulife, Sun Life Financial, and Pool Re.
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com.Category: News