Global Insurance Trends 17.05.2017
By Douglas Shillito
This week, a London Market Group (LMG) update report indicated that the London Market had a reducing market share of reinsurance and in emerging countries in 2015, and is behind on diversity. The International Underwriting Association (IUA) took a positive view saying there is a clear opportunity for the London Market to serve as a truly global centre for specialised insurance business. The Ogden discount rate change drama also featured in several major first quarter results, but the Lloyd’s Market Association (LMA) and the Association of British Insurers (ABI) both revealed their alternative solutions in response to the Ministry of Justice consultation. Marsh released a paper on The Enterprise Act which has just come into force, relating to policyholder rights to claim damages over late payment of claims. US P&C insurers suffered a $4.7bn net underwriting loss in 2016, according to a ISO/PCI report, but Fitch reported that the US commercial lines segment produced its fourth consecutive underwriting profit. Insurance Europe commented on the International Association of Insurance Supervisors (IAIS) consultation paper on group corporate governance.
European majors were amongst the first quarter financials and trading updates, which included Allianz (“a good start” says CFO), Ageas (solid quarter result except for Ogden revision), Generali (CFO said “The first quarter’s results confirm the excellent performance in terms of the Group’s profitability and capital strength”), Zurich (feeling Ogden impact), Liberty Mutual (net income down and combined ratio deteriorated), Sun Life Financial (lower return from US business), Beazley (GWP down 2%), Hannover Re (on target), Hiscox (Retail boosts Group GWP), Munich Re (CFO “very pleased” with first quarter result), Novae Group (“Establishing a point of differentiation in today’s market is critical” says Fosh), Aon (4% organic growth), and Towergate (strong performance in fourth quarter).
AXA is to IPO a minority stake in its US operations next year, Aviva sold joint venture interests in Spain, and investment groups HPS and MDP are to create KIRS, which will be the UK’s leading independent diversified insurance group and intermediary with global reach. John Tiner will be Group chairman, and David Ross Group CEO. Generali announced a new strategy for its asset management unit. There were senior appointments at AXA, AXIS Capital, ERS, and Markel International.
AGCS is working with InsurTech Praedicat to better predict the key catastrophe liability risks of the future. Digital networking will become more important for UK brokers than networking face-to-face within the next ten years, according to a new Chubb survey, and KPMG International moved for the Matchi FinTech Matchmaking platform, and InsurTech Sherpa is to collaborate with Gen Re. CyberScout and ICMIF are to work together on cyber risk Insurance. Duck Creek is to partner with the Independent Insurance Agents & Brokers of America’s Agents Council for Technology, and Insurity is to offer One, Inc’s payment processing suite of products.
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