Reinsurance News
inflation
Insurers “relatively well prepared for a recession” – Berenberg
29th June 2022
Insurers are relatively well prepared for a recession, according to a newly issued sector note by Berenberg. The privately owned bank also predicts a “shallow recession” in 2022-23 across Europe, the UK and the US. Reasons given include the strength of cash positions and cash flows, solvency ratios nearing ... Read the full article
Health insurance premiums driven by post-pandemic changes, inflation – American Academy of Actuaries
27th June 2022
Pandemic-era programs, which increased health insurance affordability and coverage, may have resulted in increased premiums for individual and small group plans in 2023. That is according to a new report by The American Academy of Actuaries. Its Senior Health Fellow, Cori Uccello, said: “Proposed health insurance premium rates reflect ... Read the full article
Higher yields a silver lining for fixed income-heavy reinsurers: Swiss Re
27th June 2022
Swiss Re estimates that in 2020 the non-life profitability gap was roughly 7–11% of premiums earned, due to the low-yield environment. Over time, the company says, higher interest rates will be reflected in insurers running yield and interest income, helping to soften the profitability gap. Swiss Re ... Read the full article
Goldman Sachs predicts short-term pain, long-term gain for reinsurers
27th June 2022
Goldman Sachs predicts that, the current economic situation will ultimately be beneficial for reinsurance companies. In the short-term, companies might see lower investment income due to negative impacts on realised gains. But in the long-term, rising interest rates are economically beneficial for reinsurance companies, and higher reinvestment yield leads ... Read the full article
Inflation, not rates, driving property premium pain – WTW
23rd June 2022
WTW's Insurance Marketplace Realities Spring Update reports that property insurance premiums will continue to rise throughout 2022, but these increases will mostly be driven by inflation raising insurable values, as opposed to rate increases. Double-digit rate increases are however likely for challenged occupancies such as forest products, metals, waste management, food ... Read the full article
Future is “here and now” – Chubb CEO Evan Greenberg
22nd June 2022
Speaking at the recent S&P insurance conference, Chubb Ltd. CEO Evan Greenberg says insurance companies that have declared net zero targets are overpromising and leave themselves vulnerable to litigation. Chubb hasn't declared such a target, he added, because it can't imagine how to measure the carbon footprint of ... Read the full article
Claims and inflation trends could threaten London market: AM Best
22nd June 2022
Analysts at AM Best have warned of the financial impact of social inflation on London market re/insurers as the rising cost of claims becomes increasingly severe. The rating agency notes that the impact on the London Market is most clearly evidenced by the strengthening of US casualty technical provisions. In 2020, court ... Read the full article
Green transition will drive up inflation – but less than unchecked climate change
20th June 2022
The "green transition" to renewable energy is expected to create inflationary pressure over the next decade. And the faster renewables are adopted, the worse this problem is expected to become in the medium term. However, according to a new forecast by Swiss Re, a faster transformation now will lower the inflationary ... Read the full article
Euro inflation pressure broadening out, core CPI rises to new multi-decade high: Swiss Re Institute
9th June 2022
A new report from Swiss Re Institute states that Euro area inflation pressure is broadening out and becoming “stickier”, as core Consumer Price Index (CPI) rises to a new multi-decade high. The current inflation surge is also increasing claims severity for European property and casualty (P&C) insurers, particularly in property and ... Read the full article
Rising inflation & construction costs to hit combined ratios: Moody’s
8th June 2022
Analysts at Moody’s have warned that rising inflation and construction costs, in combination with catastrophe losses, are set to impact the combined ratios of insurers and reinsurers through 2022 and beyond. In a new report, the rating agency examined the consequences of inflation and mounting losses for homeowners and commercial property ... Read the full article
Prolonged inflation to weigh on insurer profits: Moody’s
25th May 2022
Analysts at Moody's Investors Service have warned that a prolonged period of high inflation would weigh on EMEA insurers' profit and could bring adverse second order effects. In particular, the rating agency expects property and casualty (P&C) insurers to face higher claims costs because of inflation, although these could be offset ... Read the full article
Commercial insurance rates increasing due to inflation & legal system abuse: APCIA
17th May 2022
In the American Property Casualty Insurance Associations (APCIA) latest report, “Commercial Insurance Rates Rising: What Business Owners Need to Know”, the company examined the impact of inflationary pressures on commercial lines insurance and business owners. With “skyrocketing” inflation and legal system abuse forcing prices higher across society, along with losses in ... Read the full article
Gallagher Re suggests reinsurance adjustments to mitigate inflation pressure
13th May 2022
Analysts at Gallagher Re have suggested a number of changes to the way that insurers utilise reinsurance protection in order to better account for and mitigate the growing challenge of inflation. In a new report, the broker notes that the debate around inflation has moved on from whether it will spike ... Read the full article
Homeowners risk being underinsured amid high inflation & increased building costs: APCIA
10th May 2022
A recent survey for the American Property Casualty Insurance Association (APCIA), reveals that a majority of insured homeowners have not taken important steps to ensure their insurance coverage is keeping pace with both rising inflation and increased building costs, which could potentially leave policyholders underinsured if catastrophe strikes. The survey was ... Read the full article
Insurance part of solution to world’s economic woes: Swiss Re
25th April 2022
Insurance may be part of the solution to the world’s current economic woes, according to a new note from Swiss Re. The firm said that expanded insurance reach is a more fiscally and environmentally sustainable solution to smooth real incomes and consumption. It came to this conclusion after determining that price controls, ... Read the full article
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