15th July 2018

Newslink Global Insurance Trends-The Week

This week, the UK Government issued its Brexit White Paper as well as hosting a visit from straight-talking President Trump. UK-based insurance trade associations were quick to comment on the Brexit scenario-such as the insurance industry is too important to be a rule taker, and concern that the Government has not taken on board the considerable input from the insurance market. The level of market access is still in the air, with the hope of enhanced equivalence, but mutual recognition, favoured by UK regulators, appears to have been dropped. Meanwhile, the Prudential Regulatory Authority(PRA) published a further Solvency II Consultation Paper, Policy Statements and Supervisory Updates.
Munich Re reported that first half catastrophe losses were the lowest since 2005, estimated at around $33bn. The Willis Towers Watson Global Reinsurance and Risk Appetite Survey Report 2017/2018 indicated that insurers are moving to more sophisticated metrics such as return on equity and economic capital.
Lloyd’s launched a new digital distribution platform– Lloyd’s Bridge–designed to quickly, easily and efficiently connect insurance businesses and entrepreneurs with Lloyd’s underwriters-UK, Australia, and New Zealand will be the first countries to be connected. Accenture is to serve as the lead framework architect for The Institutes RiskBlock Alliance-a blockchain consortium for the risk management and insurance industry-a new global report predicts Blockchain spend in insurance markets is to grow from $64.5m to $1,393.8m in the next five years. Next Insurance InsurTech raised $83m in a series B round of funding. Shift Technology expanded into the US market, and is also to develop a health insurance counter fraud database for H I Counter Fraud Group(HICFG) in the UK. FICO and Ovum assessed company views on the level of cyber security across market sectors, whilst the ACORD Cyber Data Breach Standard was released-developed in collaboration with Aon and Beazley. Willis Towers Watson launched an updated version of Radar, its commercial lines pricing and underwriting software, Outra said its Property Data enables UK insurers to streamline the customer journey and enhance overall customer experience, and Admiral launched a new telematics van policy-Littlebox for Van. LIIBA created a new working group, the Broker Delegated Authority Working Group(BDAWG) focussing the work of the London Market Target Operating Model and its impact on binders and line slips.
AXA XL is the new group branding following the acquisition of XL Group. Aviva completed its exit from the Spanish market. Liberty Specialty Markets(LSM) entered into a renewal rights agreement with Ironshore Europe, Swiss Re Capital Markets successfully structured and placed the issuance of $350m of insurance-linked securities by Frontline Re on behalf of Frontline Insurance, and TMK acquired the remaining 51% share in US-based Managing General Underwriter WNC Holdings. There were senior appointments at the Chartered Insurance Institute(CII), RSA, Markel International, and Marsh.
Full articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink Global Trends Database Resource this week at www.onlystrategic.com featuring advanced self-search and reporting, and a free full 14 day access trial.