III “groundhog” predicts weakened hard market
February 4, 2003 by Canadian UnderwriterIn a new survey by the U.S. Insurance Information Institute, Wall Street analysts predict that while the hard market will continue through 2003, its pace will slacken. Following up on its “Earlybird Forecast” late last year, the “Groundhog Forecast” suggests…
Rough 2003 ahead for reinsurers, says broker report
January 28, 2003 by Canadian UnderwriterA drought in capital foreshadows a tough year ahead for reinsures, says reinsurance broker Benfield Grieg. In its report, “The Big Squeeze”, the global broker says that the flood of new capital into the market amounts to “too little, too…
AXA cuts back U.S. reinsurance exposure
January 14, 2003 by Canadian UnderwriterParis, France-based AXA says it will withdraw from certain segments of the U.S. reinsurance market. Namely, financial guarantee reinsurance by AXA Re Finance and all life and non-life reinsurance written by AXA Corporate Solutions in the U.S. This amounts to…
France, Germany face almost $1.5 billion loss from windstorm
January 8, 2003 by Canadian UnderwriterWindstorm Calvann, which swept across France and Germany late last week, has produced Eur900 million in insured damages (Cdn$1.47 billion), according to preliminary estimates from Risk Management Solutions Inc.The California-based catastrophe risk management solutions provider says the January 2 storm…
Windstorms and floods dominate 2002 cat losses: Munich Re
January 3, 2003 by Canadian UnderwriterMost of the insurance industry’s losses due to catastrophes last year were the result of windstorms and floods, says a new study from Munich Re. A full 98% of natural catastrophe payouts went to such losses, the reinsurance giant calculates.The…
Homeowner Property Losses: Underwater
January 1, 2003 Susan Vella, senior vice president of personal insurance at ChubWater-related losses on homeowner property covers seem to be seeping increasingly into the red-ink. While insurers have been battling the onslaught of losses arising from auto business, water poses a new threat to personal property covers, one which insurers can…
U.S. insurers bounce back in the final run of 2002
January 1, 2003 by Canadian UnderwriterU.S. property and casualty insurers achieved a 4.4% return on equity for the first nine months of 2002 compared with the negative 1.2% return reported for the same period the year before. Insurers brought home a taxed profit of US$9.3…
U.S. storms produce US$360 million loss
January 1, 2003 by Canadian UnderwriterStorms that hit several U.S. states in early December caused US$360 million in insured damage, according to estimates from the Insurance Services Office (ISO). All in all, it has been a relatively high fourth quarter in terms of catastrophe losses,…
U.S. insurers regain profitability for first nine months
December 18, 2002 by Canadian UnderwriterU.S. insurers brought home a taxed profit of US$9.3 billion for the first nine months of this year compared to a net loss of US$2.6 billion reported for the same period a year ago. The turnaround largely resulted from higher…
Capital Power
December 1, 2002 Sean van Zyl, EditorIn the latest edition of “Perspective” – the Insurance Bureau of Canada’s (IBC) quarterly industry financial newsletter – chief economist Paul Kovacs notes (with perhaps a hint of irony): “Not long ago, many [within the property and casualty insurance industry]…
III puts tornado losses at US$290 million
November 15, 2002 by Canadian UnderwriterTornadoes and windstorms sweeping across several U.S. states earlier this week could cost insurers US$290 million, says the Insurance Information Institute (III).The figure comes from preliminary survey data provided by AIR Worldwide, a subsidiary of the Insurance Services Office (ISO),…
Reinsurance Strategies 2003: Keeping the Boat Afloat
November 1, 2002 Sean van Zyl, EditorWhile the underlying tone of last year’s reinsurance treaty negotiations in the aftermath of 9/11 was “price! price! price!” – with an average upward rate adjustment of about 40% having been implemented across the Canadian marketplace – the 2003 renewals are likely to be driven by a tightening of coverage terms and increased use of exclusions, say CEOs partaking in CU’s annual “Reinsurance Strategy Outlook”. That said, pricing will most definitely be a factor in the upcoming treaty renewal round, with certain classes of business such as liability – which has incurred significant losses primarily as a result of the hemorrhaging auto markets – likely to face rate adjustments of between 40% to 80%. Exclusions on emerging perils such as asbestos, mold and nuclear will also feature dominantly in the renewals. Overall, the CEOs say, expect reinsurers to apply detailed underwriting as international pressure continues to restrain capacity until the tumultuous waters of the marketplace return to a profitable calm.