Reinsurance Broker Perspective: Drivers of 2003 Renewals
November 1, 2002 Bob McLean, president of Aon Re CanadaAt this time last year, we were still stunned by the attack on the World Trade Center. The January 2002 renewals were mostly on hold while reinsurers worked out their response to the new world reality. And, when the treaties were finally negotiated, it was in a dramatically changed atmosphere that no one could recognize from past experience.
Canadian reinsurance rates up sharply, says report
September 17, 2002 by Canadian UnderwriterLast year’s dismal financial returns for reinsurers have led to a sharp 44.1% increase in reinsurance premiums in 2002, says a report from global reinsurance broker Guy Carpenter.In its study “The World Catastrophe Reinsurance Market 2002”, the brokerage notes that…
Cover Story: Danger: Asbestos Exposures
September 1, 2002 Sean van Zyl, EditorRecent multi-million dollar reserving adjustments disclosed by prominent insurers in the U.S. with regard to asbestos-related exposures have occupied financial headlines. As well, the storm clouds surrounding asbestos liability appear to be building up on several frontiers: a new wave of “non-product” liability litigation is feeding into the U.S. courts while a recent U.K. court decision applying to multiple-employer responsibility to worker exposure to asbestos has opened up what many in the insurance industry believe is a “Pandora’s Box” with global ramifications. In response, several industry financial rating agencies have issued bearish reports on the potential exposure property and casualty insurers face under a new wave of asbestos litigation, suggesting that the U.S. industry alone could be under-reserved by billions of dollars. Is the Canadian market immune?
IMCA/LCA Annual Meeting 2002: Strong Words
August 1, 2002 by Canadian UnderwriterWith turmoil driving the insurance industry following the September 11 terrorist attacks, coupled with crippling financial results across both the Canadian and U.S. markets, the industry’s marketing and communication professionals recently gathered in Toronto for a conference jointly sponsored by the Insurance Marketing Communications Association (IMCA) and Life Communicators Association (LCA). The conference honed in on the changing marketplace and how insurers are adapting to “talk the talk”.
Sept. 11 losses not solely to blame for U.S. insurer woes, study shows
July 10, 2002 by Canadian UnderwriterLosses stemming from the September 11 terrorist are not the only thing to blame for the terrible performance by U.S. insurers last years, says a report from Florida-based Weiss Ratings Inc. But an overall leap in claims costs is certainly…
Cover Story: Canadian Reinsurers: Burn Point
July 1, 2002 Sean van Zyl, EditorDespite the significant rate increases implemented through 2002 renewals, few canadian reinsurers expect this year will produce a desperately needed profit recovery. With several of the major as well as small players on the global stage having recently been downgraded by financial rating agencies, and the parent owners of some of these operations having seemingly lost their appetite for the reinsurance business, market watchers are predicting a new wave of consolidation within the sector. While this pressure has already resulted in global head-office management shakeouts, the burn point seems to be tuning toward local senior managers as the market shifts into full drive in the race for profitability. This may be a hard market, but will the existing players and their senior management survive to see it through?
2002 Cat Rate Comparison
July 1, 2002 Catherine Fagan, assistant vice president of Swiss Reinsurance CThe potential threat to the insurance industry of man-made catastrophic disasters was brought under the spotlight by the events of September 11. While considerable attention is being given to evaluate these risks at both the primary and reinsurance levels, as an industry we should not forget the hazard and need for adequate pricing of natural disaster exposures.
ICLR steps up research programs
June 1, 2002 by Canadian UnderwriterNoting the rising awareness of natural disaster costs, both in financial and human terms, the Institute for Catastrophic Loss Reduction (ICLR) has revealed a full slate of research programs for the year ahead. At the institute’s annual general meeting held…
IBC Financial Affairs Symposium Weathering Storms
May 1, 2002 Vikki SpencerAs insurers and reinsurers gathered for the Insurance Bureau of Canada’s (IBC) annual Financial Affairs Symposium held recently in Toronto, the state of the market was front and center. With recent company financials showing the impact not only of the September 11 events, but the build up of years of inadequate pricing and heavy losses in many lines, reinsurers say the time has come for change. But, the remedial actions needed may be a bitter pill for the industry to swallow.
Cats at 10-year low for Q1, says ISO
April 22, 2002 by Canadian UnderwriterThe U.S. Insurance Services Office (ISO) is reporting that for the first quarter of 2002 insured-property losses are the lowest for any first quarter in the past decade. U.S. Insurers will pay out US$580 million in homeowners’ and commercial property…
Commercial market in distress, say U.S. agents
April 19, 2002 by Canadian UnderwriterThe dire condition facing commercial buyers is evidenced in the Commercial Insurance Market Index for the first quarter 2002, say the index’s creators, U.S.-based Council of Insurance Agents and Brokers (CIAB).The index shows that market tightening continues since the September…
Looking Back… or to the Future?
April 1, 2002 Sean van Zyl, EditorAfter almost 10 years to the day since piloting the course of the Insurance Bureau of Canada (IBC), George Anderson has signaled a personal change in course. The long-standing president of the IBC — who held office during perhaps the “hottest political period” the property and casualty insurance industry faced to date — has retired, allowing what he describes as “new blood to step forward”.