Reinsurance News
COVID-19 news
News about the impact of the global COVID-19 coronavirus pandemic and how it affected insurance and reinsurance markets.
CNA Financial pegs total Q2 cat loss at $301mn
16th July 2020
CNA Financial Corporation has announced that it expects to report a total catastrophe loss of $301 million pretax for the second quarter. Of that figure, $182 million is related to COVID-19, $61 million related to civil unrest and $58 million related primarily to severe weather-related events. The company says its Q2 COVID-19 ... Read the full article
COVID-19 market dislocation creating opportunities in some lines: AM Best
15th July 2020
Coronavirus-driven market dislocation is creating attractive opportunities for insurers in some lines of business, according to AM Best. The ratings agency notes how a number of existing companies, including Beazley, Fidelis, Hiscox, Lancashire, QBE and Renaissance Re have all announced capital raising initiatives to bolster balance sheets in response to uncertainty, ... Read the full article
Cincinnati Financial posts Q2 cat losses of $231m
15th July 2020
Cincinnati Financial Corporation is expected to include pretax catastrophe losses of approximately $231 million in the second quarter, adding 16.5% to the quarterly combined ratio based on estimated property casualty earned premiums. Two multi-state storms in early April each caused approximately $50 million in losses, in addition to catastrophe losses from ... Read the full article
APCIA hosts virtual meeting to push for federal pandemic solution
15th July 2020
Members of The American Property Casualty Insurance Association are to meet virtually with individuals from of the House Financial Services Committee over the next two weeks to advocate for the Business Continuity Protection Program. The BCPP is a customer-focused proposal for a federal program tailored specifically to help businesses meet the financial ... Read the full article
Arch sees Q2 cat losses at up to $225mn
15th July 2020
Arch Capital Group Ltd. has announced estimated pre-tax net catastrophe losses of $205 million to $225 million across its property casualty insurance and reinsurance operations in the second-quarter of 2020. The Bermuda-based insurer and reinsurer's Q2 catastrophe loss range is net of reinsurance recoveries and reinstatement premiums, and includes the impacts ... Read the full article
Second virus wave could erode re/insurer capital: S&P
14th July 2020
Analysts at S&P Global Ratings have warned that re/insurers' capital buffers could be eroded through the second half of the year if there is a second global wave of COVID-19. While its insurance ratings have proven resilient through the pandemic so far, the firm believes many companies will suffer from the ... Read the full article
Travelers warns of Q2 net loss as catastrophe bill hits $854mn
14th July 2020
Property and casualty insurer, The Travelers Companies, Inc., expects to report a net loss for the second-quarter of 2020 on the back of a high level of catastrophe losses and losses in its non-fixed income investment portfolio. The firm's Q2 2020 catastrophe losses are estimated at $854 million pre-tax ($673 million ... Read the full article
Independent film, TV under threat as insurers refuse COVID-19 risk: Reuters
14th July 2020
Independent film and television productions are struggling to secure financing as insurers increasingly refuse to accept risks associated with COVID-19, according to reports from Reuters. Outside of major studio productions, which have the resources to self-insure, uncertainty around coronavirus appears to have created a major roadblock in moving forward with productions. One ... Read the full article
Consider parametrics to manage COVID-19 insurance gap, says GlobalData
13th July 2020
In order to address the significant insurance protection gap that has been highlighted by the ongoing COVID-19 outbreak, parametric structures should be considered, according to GlobalData. As lockdown measures came into effect around the world, businesses of all shapes and sizes turned to their insurers for assistance through their business interruption ... Read the full article
W. R. Berkley puts Q2 cat losses at $145mn; includes $85mn COVID-19 hit
13th July 2020
W. R. Berkley Corporation has revealed that it expects to incur net catastrophe losses of roughly $145 million (pre-tax) for the second-quarter of 2020, most of which is attributable to the COVID-19 pandemic. The firm estimates that approximately $85 million, or 59% of its Q2 loss estimate relates to the ongoing ... Read the full article
US commercial insurers’ results face COVID-19 claims uncertainty: Fitch
10th July 2020
Benefits for US commercial insurers from recent sharp premium rate improvement are likely to be delayed by effects on underwriting results from COVID-19, according to Fitch Ratings. The ratings agency says the sector was poised for 2020 profit improvement following two consecutive years of statutory industry commercial lines combined ratios slightly ... Read the full article
COVID-19 to wipe £3tn from global trade: Russell Group
10th July 2020
Covid-19 will wipe $3 trillion from global trade in 2020 compared with 2019 levels, according to analysis conducted by Russell Group. Based on shipping and aircraft movements, the risk management company predicts trade to be $7.45 trillion in the first half of 2020 and $8.55 trillion in the remaining six months ... Read the full article
India’s insurance regulator (IRDAI) is exploring a pandemic risk pool
10th July 2020
The Insurance Regulatory and Development Authority of India (IRDAI) has established a nine-member working group to explore the possibility of establishing a pandemic risk pool. India is the latest country to reveal that it's exploring the launch of a pandemic risk pool to manage the risks related to reduced economic activity ... Read the full article
Chubb proposes $1.15tn state-backed pandemic BI scheme
9th July 2020
Global insurer and reinsurer Chubb has put forward a proposal for a public-private partnership program to provide business interruption (BI) cover for all kinds of US business ahead of the next pandemic. The company envisions the scheme’s total capacity at around $1.15 trillion, consisting of an aggregate limit of $750 billion ... Read the full article
Global insurance premiums to recover in 2021 after COVID-19-induced dip: Swiss Re
9th July 2020
Global insurance premiums are expected to recover in 2021 after contracting this year on the back of a COVID-19-induced economic recession, according to the latest Swiss Re Institute sigma report. While expected to be short-lived, Swiss Re warns that this year's recession is set to be the deepest since the Great ... Read the full article
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