Social inflation

The settlement complex

2022-05-13T15:54:00+01:00

The assertion by Securitas that its insurers were “compelled” to participate in the giant $1bn Florida condo collapse class action settlement because of the climate around litigation and claims rather than liability is a potent reminder of the pervasive impact of social inflation and fear of nuclear verdicts.

BIBA 2022

Biba display of ESG credentials highlights rise up agenda

2022-05-13T07:04:00+01:00

This week’s British Insurance Brokers’ Association (Biba) conference marked the first major in-person UK insurance gathering since the onset of the Covid-19 pandemic in early 2020, with thousands of industry professionals meeting in Manchester for the event.

Ascot

If Evercore is correct, Ascot’s owners may be mad to sell now…

2022-05-11T07:32:00+01:00

Lloyd’s/US/Bermuda carrier Ascot is a high-class operation and has been ever since Hank Greenberg was persuaded to back its launch 20 years ago – a move that saw an AIG at its omnipotent pomp enter Lloyd’s for the first time.

Tysers sale tag

£500mn+ Tysers sale is also a vote for London…

2022-05-10T07:29:00+01:00

The protracted sale process for Lloyd’s oldest broker Tysers culminated yesterday with listed Australian retailer AUB agreeing terms with the firm’s previous owner, US private equity firm Odyssey Investment Partners.

Migration

The great migration

2022-04-29T14:04:00+01:00

Plenty has been written in recent years about the threat to the wider P&C insurance industry posed by a finite talent pool and a succession void as the ageing demographics of its senior ranks outpace the flow of human capital in the tiers below.

US Commercial insurance pricing

Early feedback on Q1 rates shows deceleration but leaders remain upbeat

2022-04-26T15:27:00+01:00

Early reporters in the US property casualty Q1 earnings season have confirmed a decelerating trend for rate increases, but management on earnings calls have stressed they remain above loss costs and pressure remains to keep rates up.

RIMS

ESG scrutiny intensifies as multiple stakeholders monitor industry progress

2022-04-22T13:22:00+01:00

In recent weeks there has been a resurgence in protests against the industry’s role in providing insurance for fossil fuels, with Extinction Rebellion activists forcing the closure of the Lloyd’s building on 12 April.

A tale of two regulators

A tale of two regulators…

2022-04-14T07:13:00+01:00

The Prudential Regulation Authority (PRA) is responding to the legitimate concerns of regulated companies. The Financial Conduct Authority (FCA), on the other hand, veers from one problem to the next. A cultural change is required…

RIMS

RIMS 2022: The haves and the have nots

2022-04-10T18:38:00+01:00

After three years of a broad hardening of rates in the US commercial insurance market, a shift in dynamics is taking place. But rather than a linear progression of widespread deceleration, plateauing and softening, an uncertain picture is emerging where there will be a wide range of individual experience for ...

Lloyd's Ukraine

S&P’s $16bn+ bearishness on Ukraine points to a heavy Lloyd’s blow

2022-04-04T07:30:00+01:00

S&P Global Ratings’ scenario analysis for specialty insured losses from the Russia-Ukraine conflict raised eyebrows late last week through its use of a $16bn base-case scenario for the terrible event.

Russia and Ukraine emissions

ESG: more important now than it’s ever been

2022-03-29T10:54:00+01:00

Russia’s military invasion of Ukraine has raised questions around whether ESG agendas will be derailed as Western economies seek to reduce dependence on Russian oil and gas. 

Natural disasters 2

Capacity crunch

2022-03-25T16:24:00+00:00

It was at the Wholesale & Specialty Insurance Association (WSIA)’s Annual Marketplace 2021 in San Diego back in November that the extent of carrier retrenchment from supporting cat-focused property MGAs became clear.

Atrium

Atrium discovers the high price of reputation

2022-03-21T11:00:22.41+00:00

Warren Buffett is responsible for many pearls of wisdom including the observation that it takes 20 years to build a reputation and only five minutes to ruin it.

Russia and Ukraine emissions

Russia-Ukraine: a setback to net zero, or a catalyst for transition?

2022-03-18T08:16:51.22+00:00

Over the coming days the UK government is expected to outline its new energy strategy, the latest move by a major Western economy to rethink its energy supply and reduce dependence on Russian oil and gas.

Lloyd's zero tolerance

Atrium fine highlights Lloyd’s zero-tolerance approach

2022-03-17T08:28:23.69+00:00

The decision by Lloyd’s to impose a £1mn penalty against Atrium – the heaviest fine dished out to date by the Lloyd’s Enforcement Board – is the clearest sign yet that the Corporation is serious about its zero-tolerance approach to market misconduct.

1.4 Japan renewal

Japan and Florida – from order to chaos

2022-03-11T16:28:00+00:00

This morning we published an update on the largely uneventful 1 April Japanese cat renewal, where an orderly market is expected to get home with mid-single-digit increases. As Florida homeowners carriers do the rounds of reinsurers in Bermuda, the contrast between the two markets could not be any more stark.

UK Russia sanctions

UK gov aviation U-turn highlights need for sanction consistency

2022-03-10T08:13:12.04+00:00

Russia’s invasion of Ukraine has triggered a wave of sanctions from Western governments aimed at shutting down the Russian economy and cutting the country’s ties to the global financial system.

Argo – Bermuda

Argo: a thawing in the resistance to a sale?

2022-03-08T15:21:00+00:00

Recent developments including the temporary absence of CEO Kevin Rehnberg look to be a setback to the turnaround progress made by the Bermudian. Its repositioning as a US specialty insurer means it has a scarcity value that could be realised if its board and temporary management shift their stance

Natural disasters 2

Keeping loss picks realistic as exposures rise…

2022-03-08T08:15:00+00:00

One of the key messages Lloyd’s has driven home throughout the underwriting remediation process of recent years has been that sustainable performance management is a continuous discipline.

The Union League Club

New frontiers

2022-02-24T16:43:00+00:00

In a short month that has already seen the publication of our relaunch issue of Program Manager, we might have been forgiven if our official February issue was a little thin on the ground.