Lighter than normal hurricane season expected, scientists say
August 8, 2002 by Canadian UnderwriterResearchers at Colorado State University’s hurricane forecast team say this year’s hurricane season should be less punishing than previously thought. Despite the recent appearance of tropical storms Arthur and Bertha in the Atlantic basin, atmospheric conditions since the start of…
Risk Management: The Road Less Traveled
August 1, 2002 Vikki SpencerFor risk managers facing January renewals on their insurance portfolios, 2002 was the year of sticker shock and worse. Along with dramatic price increases came new exclusions for mold, cyber risks and terrorism, reduced limits and a struggle to find capacity in the marketplace. But is the headache over? Risk managers expect that it is not, bracing themselves for an uncertain future and wondering when will the hard market end. And many are also looking seriously at options beyond insurance that may have held little appeal in the buyer’s market, but are becoming increasingly attractive in the current seller’s market. At the same time, there is recognition that captives, reciprocals, capital markets and more represent uncharted territory which many within the risk management profession find daunting.
Reinsurance Broker Perspective: Where are the Good Old Days?
July 1, 2002 Don Alexander of Guy Carpenter CanadaTrying to “crystal ball” the outcome of the upcoming yearend reinsurance renewal season is something I am not going to hazard a chance at. However, based on the dismal company financial returns for 2001, and the “no nonsense” approach of underwriters during the current year, it is safe to say that securing treaties for 2003 will require skillful negotiation.
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.
Q1 2002 net income drops for U.S. p&c industry
June 26, 2002 by Canadian UnderwriterDespite widespread rate hardening and improved underwriting results, the U.S. p&c industry saw its net income fall 7.3% for the first quarter 2002 largely as a result of declining investment returns, says the Insurance Services Office (ISO). Net income was…
ISO raises WTC insured loss estimate by US$3.7 billion
June 19, 2002 by Canadian UnderwriterThe New York-based Insurance Services Office Inc. (ISO) has readjusted its insured property loss estimate from the World Trade Center (WTC) and Pentagon terrorist attacks of last year by US$3.7 billion to a total of US$20.3 billion.This latest loss figure,…
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”.
Losing by Default
March 1, 2002 Glenn McGillivray, assistant vice president & head of corporateWith a softening economy — which was exacerbated greatly by the 9/11 events — an economic crisis in Argentina, and a record-breaking string of corporate bankruptcies over the last months, many companies quickly learned that natural and man-made catastrophes present just one type of threat to the balance-sheet.
North American Insurance Conference: The Perfect Storm
January 1, 2002 by Canadian UnderwriterAs Hurricane Michelle raged through the Bahamas, members of the insurance industry from both sides of the border congregated in Florida to assess where the market is headed, post-September 11. Overwhelmingly, speakers agree that despite the 9/11 tragedy, the event has shaken the industry out of complacency. With shrinking reinsurance capacity and lingering doubts about the availability of coverage, insurers and reinsurers alike are moving forward with a resolve to bring both rates back into positive territory and focus on responsible underwriting.
U.S. insurers results: from ground-zero to zero
January 1, 2002 by Canadian UnderwriterU.S. property and casualty insurers incurred their worst financial loss for the first nine months of last year since the devastation caused by Hurricane Andrew in 1992, observes the Insurance Services Office (ISO) and the National Association of Independent Insurers…
40 Most Costly Insurance Losses — Selected, 1970-2000
December 1, 2001 by Canadian UnderwriterLocation Year Victims Insured Damage (US$ at 2000 prices) 1. Hurricane Andrew Florida 1992 38 19,649,000 2. Northridge earthquake California 1994 60 16,277,000 3. Typhoon Mireille Japan 1991 51 7,142,000 4. Winter storm Daria Europe 1990 95 6,053,000 5. Winter…
Consolidation to follow terrorist attacks, says PWC
November 28, 2001 by Canadian UnderwriterFollowing the September 11 terrorist attacks, the industry has begun to see worldwide consolidation, and this is expected to continue, says PriceWaterhouse Coopers. In its yearend forecast, PWC’s Transaction Services Group says there will be more merger and acquisition (m&a)…