Reinsurance News
Coronavirus news
Coronavirus news coverage of relevance to reinsurance and insurance markets.
All of our Covid-19 coronavirus news, analysis and insight related to insurance and reinsurance market impacts can be found below.
The coronavirus Covid-19 pandemic of 2019-20 resulted in significant disruption and threatened losses widely across the insurance and reinsurance markets.
Insurers looking to improve margins in hardening market: Mactavish
24th December 2020
Research conducted by commercial insurance placement and disputes firm, Mactavish, reveals that many commercial policyholders have faced drastic premium increases this year, as insurers look to improve margins in a hardening market, where some have risen up to 800%. Analysts from the firm also highlight the increase in cyber crime, which ... Read the full article
Lloyd’s announces changes to Claims Scheme amid COVID-19
23rd December 2020
Lloyd’s of London has announced changes to the Claims Scheme as part of its response to challenging market operations caused by COVID-19. Lloyd’s, the oldest insurance market in the world, announced the review in April. The changes, which are effective immediately, amend the Claims Scheme requirements with an aim of empowering ... Read the full article
Lloyd’s limits underwriting room access under tier 4 rules
22nd December 2020
Following the introduction of tier 4 COVID restrictions in London this week, insurance and reinsurance marketplace Lloyd’s of London has decided to limit access to its underwriting room to just one day per week. The room will remain open for all classes of business on Wednesdays in order to continue providing ... Read the full article
Covid-19 losses to impact casualty treaties in 2021: New Dawn Risk
22nd December 2020
As Covid-19 losses continue to bite, New Dawn Risk’s senior treaty broker Rachel Cohen expects to see casualty treaties in 2021 impacted by an accelerating hardening of reinsurance rates, restricted terms and conditions and reduced capacity. While there are already several US D&O class actions related to Covid-19, liability claims are ... Read the full article
COVID-19 loss reports approach low-end of industry estimates at $30bn
21st December 2020
Data from financial services advisory PeriStrat shows that total tracked public loss estimates from re/insurers are now approaching the low-end of market loss estimates, which range from $30 billion to $80 billion. PeriStrat believes that reported losses now amount to $29.5 billion, and warned that Q4 financial reporting will probably reveal ... Read the full article
Suncorp confident in covid reserves after BI court win
21st December 2020
A Covid-related business interruption court case victory has prompted Australian primary insurer Suncorp to underline its belief that overall reserving for the pandemic continues to be adequate. The federal court of Australia ruled in favour of Suncorp, via its Vero Insurance subsidiary, on a BI claim that had been denied on ... Read the full article
Covid, FCA pricing review & climate change set to define re/insurance in 2021: EY
18th December 2020
Covid, the Financial Conduct Authority’s pricing review and climate-related strategies are set to define the re/insurance sector in 2021, according to analysts at professional services firm EY. Rodney Bonnard, EY's head of insurance in the UK, said the pricing review will have a big cost implication for the sector as many insurers ... Read the full article
Interest rates & COVID shock behind negative European outlook: Moody’s
18th December 2020
Moody’s has said that prolonged low interest rates and the economic shock from the COVID-19 pandemic underpin its negative outlook on the European insurance sector. Interest rates have declined further in 2020 and Moody's expects them to remain low for some time to come. Low rates will reduce P&C insurers' investment income ... Read the full article
AM Best assigns negative outlook to US commercial property insurance
15th December 2020
AM Best has assigned a negative market segment outlook to the US commercial property insurance segment, citing uncertainty over Covid-related business interruption (BI) legislation and increasing frequency and severity of natural catastrophes. While AM Best does not expect significant claims activity in commercial property due to the pandemic, it does foresee ... Read the full article
Lloyd’s & Parsyl partner on COVID vaccine distribution initiative
15th December 2020
Lloyd’s of London has partnered with supply chain data platform Parsyl to launch an insurance initiative for the distribution of COVID-19 vaccines. The public-private collaboration includes 14 global re/insurers and aims to address critical risks faced by COVID-19 vaccines and other health commodities during distribution. The initiative involves the launch of a ... Read the full article
Improved pricing sees $6bn raised by re/insurers across Q4: Willis Re
11th December 2020
A new report from Willis Re, the reinsurance arm of global brokerage Willis Towers Watson, estimates that reinsurers globally have raised $6 billion across the fourth quarter of 2020. This figure would bring the year-to-date total to $19 billion, with a further $3b being contemplated and/or in progress. Willis Re attributes these ... Read the full article
McGill and Partners adapted well to COVID-19: Paul Summers
10th December 2020
Whilst some in the (re)insurance industry are still reeling from the shock of COVID-19, start-up specialist (re)insurance broker McGill and Partners says a focus on technology and creativity has allowed it to adapt well to the pandemic. This is the view of Paul Summers, Head of Global Facultative Reinsurance, who in ... Read the full article
Broad support for flood performance certificates, says Flood Re
10th December 2020
New research released from government-backed reinsurer Flood Re shows an overwhelming majority of prospective home movers are backing the introduction of a Flood Performance Certificate. Much like an Energy Performance Certificate (EPC), the Flood Performance Certificate would provide prospective buyers and renters with a clear overview of the flood risk posed ... Read the full article
The ICA to appeal against BI test case ruling
9th December 2020
The Insurance Council of Australia (ICA) has announced its decision to contest a recent New South Wales Court of Appeal’s ruling that landed in favour of Covid-19-impacted businesses. The NSW Court of Appeal’s ruling could see insurers unable to deny claims from policyholders whose business interuption cover included an outdated ... Read the full article
US social inflation amid the COVID-19 recession here to stay, says Swiss Re
9th December 2020
Global reinsurer Swiss Re expects social inflation to continue pushing up loss costs in US excess liability and reinsurance. Analysts note how social inflation has spread across commercial casualty lines in recent years due to non-economic drivers that include the trial bar's use of psychology-based strategies, litigation funding and inequality. The effects ... Read the full article