The world is going through an extraordinary moment due to the Covid-19 crisis, and while all sectors have been hit, the (re)insurance sector has been particularly affected for two main reasons, writes Hervé Nessi, chief underwriting officer at CCR Re.
Widespread availability of pandemic insurance, through the industry’s private sector incentives and the federal government’s access to capital, would provide policyholders with long-term incentives to reduce their risks from contagious diseases, argues Daniel Kaniewski, managing director at Marsh & McLennan Companies.
As Covid-19-related losses creep their way up through reinsurance layers, “a number of issues” are beginning to arise and a new litigious battleground is forming.
The September ruling in the Financial Conduct Authority (FCA)’s landmark test case will be examined in the UK’s highest court this week in a hearing set to have far-reaching consequences for both carriers and policyholders.
Jonathan Sacher and Richard Jennings of Bryan Cave Leighton Paisner analyse some of the reinsurance implications of the second lockdown.
While significant strides have been made to encourage the reduction of soaring and unsustainable expense ratios at Lloyd’s for the market’s greater good, Stephen Card, CEO of Carbon Underwriting, admits that parts of this effort are a “challenge”.
The efficiency of the MGA model, the product innovation it brings and the influx of new program carriers fuelled by reinsurer appetite are all factors in the strong rate of growth seen in the US programs sector, according to Michael Jameson, head of Guy Carpenter’s new GC Access unit.
New capital formation targeting hard market opportunities in the P&C industry will face significant barriers to entry in the E&S sector and will not have a meaningful impact on dynamics, according to Allied World president and CEO Lou Iglesias.
The reinsurance-purchasing habits of some Caribbean insurers have evolved since the region was impacted by the devastating windstorms of 2017 and 2019, although disparities remain between those companies that were hit and those that were not, according to Swiss Re’s Kaspar Müller.
The (re)insurance industry is not taking full account of the Atlantic Multidecadal Oscillation (AMO) in its underwriting of hurricane risk, despite no sign of a change from the warm phase of the cycle that tends to drive increased activity, according to Swiss Re’s Mohit Pande.