The Invisible Hand
July 1, 2003 Glenn McGillivrayWith a great number of property and casualty insurers and reinsurers operating in this country being owned by foreign parent companies, the market here is often influenced by decisions taken in far off home-offices.
Reinsurance: Place Your Bets
July 1, 2003 Sean van Zyl, EditorFinancial rating downgrades, market withdrawals and companies going into runoff have dominated media reports on the global reinsurance sector of the property and casualty insurance industry. Much the same applies to Canada’s reinsurance sector, which in the span of a 12 month period has undergone dramatic consolidation in the number of players if not in “real” premium capacity. With reinsurers operating in Canada having for the second consecutive year brought home rate increases of 30%-plus for 2003 renewals, the obvious question is why the sector continues to attract negative growth outlooks from the rating agencies. The answer lies in the multi-billion dollar adverse reserve adjustments made by global reinsurers over the past two years, and just when and to what extent this “loss drain” from prior years will come to an end. Specifically, the rating agencies are concerned over whether the parent owners of these global reinsurance carriers will continue to provide capital support. Also, commentary from senior managers of reinsurance and primary insurance companies suggests that the financial security of reinsurers has replaced the “old school relationship” approach to which companies were able to participate in insurer programs. But, with reinsurance capacity remaining scarce in certain classes of business, such as auto liability, insurers admit that they sometimes have to “place their bets” in settling for reinsurance from a less-than top-rated reinsurance carrier.
2003 Hurricane Season: La Nina’s Revenge
July 1, 2003 Vikki SpencerInsurers and reinsurers may soon find themselves caught in the “eye of the storm”, as La Nina rears its head once more, bringing in her wake predictions of increased hurricane activity. Should the Atlantic coast be hard hit this year by tropical cyclones, it would be a difficult blow for an industry trying to regain profitability. And, with even more meteorological mayhem expected for the winter season, La Nina may be a very unwelcome visitor indeed.
Reinsurance Perspective: 2004 Treaty Outlook
July 1, 2003 Donald Callahan, president of Guy Carpenter & Co. Ltd.As the 2004 reinsurance treaty season draws nearer, the Canadian marketplace appears to be in a state of turmoil as global reinsurers evaluate their capital positions and effective capital use. The result has seen withdrawal of several known names from…
U.S. Insurers Benefit From 1-Q Underwriting Recovery
July 1, 2003 by Canadian UnderwriterU.S. property and casualty insurers increased net taxed income for the first quarter of this year by more than 20% to US$6.4 billion compared with the US$5.3 billion reported for the same period a year ago, according to data collected…
U.S. insurers benefit from 1-Q underwriting recovery
June 24, 2003 by Canadian UnderwriterU.S. property and casualty insurers increased net taxed income for the first quarter of this year by more than 20% to US$6.4 billion compared with the US$5.3 billion reported for the same period a year ago, according to data collected…
“Kick-Starting” Competition in B.C.
June 1, 2003 Sean van Zyl, EditorThis year’s annual general meeting and conference of the Insurance Brokers Association of British Columbia (IBABC), which was recently held in Victoria, focused on implementation of increased competition in the province’s optional auto insurance marketplace. Also included in the association’s top priorities in the year ahead is facilitating increased underwriting capacity in commercial lines, where the province’s brokers have most experienced the effect of the “hard market” cycle.
2003 Canadian Insurance Congress: Finding Direction
June 1, 2003 Sean van Zyl, EditorThe ongoing bleeding in the auto markets across nearly all provinces of Canada, coupled with the devastating impact of the investment environment on insurers’ income statement and balance-sheets, served as core issues of discussion at this year’s Canadian Insurance Congress. With the auto loss damage having spread from companies income returns to cause capital deterioration – which recently saw a senior management shakeout at a leading personal lines carrier – speakers and attendees at the congress meeting speculated to whether this may just be the start of a long line of casualties and ultimate consolidation of the Canadian property and casualty insurance industry as insurers try to find direction.
Catastrophe Modeling: Shifting Perceptions
June 1, 2003 Eric Gobble and Don Windeler at RMSAs Canada’s insurers seek to quantify their catastrophe exposure, earthquake models offer an insight into how technology can further underwriting. Even events south of the border illustrate the wealth of new information at insurers’ fingertips to better comprehend large losses that can have a significant impact on reinsurance and reserves.
S&P sees bleak future for European, Japanese insurers
May 22, 2003 by Canadian UnderwriterRating agency Standard & Poor’s is predicting little good news in the near term for insurers in Europe and Japan.In a report on the European insurance sector, S&P says that continued pressure on credit quality, despite some signs of stability,…
Latest U.S. storm insured losses pegged at US$1.55 billion
May 21, 2003 by Canadian UnderwriterA series of storms which ripped through 18 states within the U.S. between May 2-11th of this year – which saw more than 400 tornado touchdowns – will cost insurers at least US$1.55 billion in auto, residential and commercial claims,…
Endurance buys portion of HartRe renewal rights
May 20, 2003 by Canadian UnderwriterJust days after the announcement that The Hartford would exit p&c reinsurance, a buyer for part of the business has been found. Bermuda-based Endurance Specialty Holdings Ltd. says it has bought the majority of HartRe’s in-force p&c reinsurance business. Endurance…