Reinsurance News
inflation
AJ Gallagher foresees no adverse impact from Inflation Reduction Act
11th August 2022
Re/insurance broker Arthur J. Gallagher & Co. has said that it is not anticipating any additional tax liabilities or material adverse impacts from the introduction of the Inflation Reduction Act of 2022 (IRA) in the US. The IRA, which was passed by the U.S. Senate on August 7, 2022, is not ... Read the full article
Insurers may face exposures from surging housing market: Swiss Re
11th August 2022
A new report from the Swiss Re Institute states a record high in housing prices accompanied by inflated household debt has created an increasingly challenging market. Insurers are warned to carefully manage their business and investment risk exposure. Surging interest rates are making new house purchases less affordable and increasing mortgage ... Read the full article
Arduous operating environment for Lebanese reinsurers remains after Beirut explosion: AM Best
10th August 2022
A recent AM Best report has affirmed that two years after the Beirut explosion, operational risk has risen to an extremely high level, and the ease of doing business has declined materially amid several crises faced in the last three years, with Lebanese re/insurers having to contend with hyperinflation and ... Read the full article
Munich Re expects increased inflation pressure to be manageable, says CEO
9th August 2022
Joachim Wenning, Chief Executive Officer (CEO) and Chair of the Board of large European reinsurer Munich Re, has said that while inflationary pressures are on the rise, the firm expects this to be a manageable risk. Speaking this afternoon to investors and analysts following the release of its Q2 and ... Read the full article
P/C insurers in emerging markets at risk as economic recovery slows – S&P
4th August 2022
S&P Global Ratings report that persistent pressures from inflation, tightening financial conditions and slower economic growth in China and other markets are likely to cause constraints on operating conditions for property/casualty (P/C) insurers in emerging markets. Overall, ratings are stable, but some markets are seeing weakening trends. The P/C sectors in ... Read the full article
Weaker US personal lines results driven by rising inflation: Fitch Ratings
3rd August 2022
US personal line insurers have been moved to adjust pricing and underwriting in response to weaker results, which have felt the pressure of rising inflation and costs, according to a recent report. Fitch Ratings analysts have reported that US personal lines insurance written premiums saw a 5% increase in last year ... Read the full article
London PI market buoyant, but concerns grow about inflation: Clyde & Co
2nd August 2022
Clyde & Co’s second annual London Market Professional Indemnity Report, based on a survey of PI professionals across underwriting, broking and claims, has revealed a widespread optimism about market conditions for the coming months, tempered by wariness of macroeconomic and inflationary pressures on the horizon. The survey, which took place in ... Read the full article
Inflation to magnify H1 insured losses, says Aon
22nd July 2022
Analysts at Aon have warned that inflation, in combination with other factors, are likely to magnify insured losses in the first half of 2022 beyond initial estimates. The broker's data shows that insured losses from natural disaster events totalled $39 billion in H1, which is roughly 18% above the 21st ... Read the full article
UK car insurance premiums increase by 6%, industry facing a “raft of challenges”: WTW
21st July 2022
Comprehensive car insurance premiums have increased by 6% (£32) during the last 12 months, with UK motorists now paying £554 on average, according to data from WTW and Confused.com Car Insurance Price Index. WTW recently warned that UK motor claims inflation was on the rise, as the broker recently revealed ... Read the full article
Inflation weighs heavily on results of UK motor insurer Sabre
15th July 2022
UK motor insurer Sabre Insurance Group has reported that the “exceptional inflation event” experienced so far in 2022 has weighed heavily on its results for the first half of the year. The company last year factored in claims inflation of approximately 8%, but believes that levels have now reached approximately 12%, ... Read the full article
AM Best maintains negative outlook on Mexico’s insurance industry
12th July 2022
According to a recent AM Best report, the rating agency is maintaining its negative outlook on Mexico’s insurance market segment, owing to increased levels of inflation and slow GDP growth. Best’s new market segment report, titled - Market Segment Outlook: Mexico Insurance, states that premium growth in 2021 was pressured by ... Read the full article
Inflationary recession is key concern – GAEF
12th July 2022
Central banks need to take decisive action to tame rampant inflation, rein in underlying inflation expectations and repair their damaged credibility. That was the consensus among more than 20 members of the Geneva Association Economic Forum (GAEF) Network, comprised of chief economists and chief strategy officers from the ... Read the full article
Gallagher Re finds pricing in US Nationwide market up by 40% in spots
7th July 2022
Gallagher Re’s latest mid-year renewals report has found that property rate movements in the US has increased by up to 40%. Pricing in some cases in the Florida market have even increased by up to 50%. In the report, Gallagher Re stated that risk excess and catastrophe capacity started to become ... Read the full article
Insurance premiums to reach record highs due to inflation, climate change – Matic
1st July 2022
Matic, an insurtech platform, says that home insurance premiums in the US are rising faster than ever before, increasing at a record rate of 5.5% between June 2021 and May 2022. According to Matic’s 2022 mid-year findings, which aggregated data from a random sample of 70,000 insurance policies, a ... Read the full article
PwC warns of insurance bill rises caused by inflation
30th June 2022
PwC estimates that UK businesses may see price rises of between 10-20% in the cost of their annual insurance bill. The professional services firm said that this was the direct result of a rising consumer price index, which has ‘significantly’ increased the costs of materials and labour in the settlement of ... Read the full article
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