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.
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.
Toxic Mold Claims: Covering the Bases
November 1, 2002 Vikki SpenceEvents in the Texas homeowners’ insurance market have sent a chill through the North American insurance industry – multi-million dollar court awards, big company withdrawals, exclusion debates. In Canada, insurers have seen the mold threat coming as they watch their U.S. counterparts struggle to keep pace with this emerging peril. And, while there is agreement that mold has the potential to hit the Canadian market just as hard, insurers are looking south to learn from the U.S. example before it becomes too late.
Insurers turn to loss control as property claims spiral
November 1, 2002 by Canadian UnderwriterWith the rise in claims costs having exceeded the growth of premiums for the last five years, it should come as no surprise that last year saw the Canadian property and casualty insurance industry incur a negative development on prior…
Fire in the Hole (October 01, 2002)
October 1, 2002 Sean van Zyl, EditorPersonal auto insurance – specifically the losses and subsequent pricing actions taken within the private sector markets has become a political “hot potato” almost countrywide. Brokers and consumer groups from the east coast through to the west are beginning to…
Nightmare
October 1, 2002 AxiomTo celebrate our 75th year in business, my insurance company had staged a special anniversary party at our head-office. There had been an open bar, mounds of hot finger food, plus a few mercifully short speeches. Some of our leading…
Co-operators downgraded as claims rise
October 1, 2002 by Canadian UnderwriterDespite an encouraging half-year financial return, The Co-operators General Insurance Co. (TSX: CCS.PR.A) saw its net income drop for the second quarter reporting period as claims costs rose. The company’s net income fell to $7 million for the quarter ending…
III pegs 9/11 losses at US40.2 billion dollars
October 1, 2002 by Canadian UnderwriterThe New York-based Insurance Information Institute (III) is tallying losses from the September 11, 2001 terrorist attacks at US$40.2 billion. The attacks represents not only the largest loss in insurance history, but also the most complex, notes III president Gordon…
Judge calls WTC attacks “one occurrence”
September 26, 2002 by Canadian UnderwriterA federal judge in New York has declared that the felling of the World Trade Center towers by two planes on September 11, 2001 was “one occurrence”, not two as claimed by the leaseholder.The ruling applies to three insurers, St.…
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…
9/11 One Year Later: Lingering Issues
September 1, 2002 Vikki SpencerAs the grim anniversary of the September 11 terrorist attacks in New York City and the Pentagon approached, its reverberations were still being felt. Battles in the Middle East rage on, the world’s economies continue to struggle and, in the realm of insurance, uncertainties linger. Chief among these is the lack of available terrorism coverage, specifically affecting aviation and commercial property lines. Despite hopes of a solution, a year after the tragedy that represents the largest loss in insurance history, the terrorism insurance market remains in disarray.
One for All…Or the “Deepest Pocket”?
September 1, 2002 Craig HarrisDespite talk about reforming joint and several liability, the legal principle that some refer to as the “1 percent rule” still plagues deep pockets like governments – and their insurers.