Claims

Continued softening expected in property catastrophe reinsurance

Traditional property catastrophe reinsurance program pricing is anticipated to continue softening during mid-year renewals, according to Aon Re Global analysis. Price reductions will be a higher priority for cedents, while terms and conditions are expected to improve, Aon Corporation notes in a release. But the underlying fundamentals that drove the softening of price and terms […]

By Canadian Underwriter | April 16, 2008

1 min read

Claims

Subprime “train wreck” could continue to 2010

The scale of the subprime crisis so far is having the equivalent impact on the insurance industry as a Category 5 hurricane hitting Miami, A.M. Best reports.For 2008 Q1, D&O and E&O claims and litigation linked to the subprime crisis are currently up 400% year-on-year, Greg Flood, president of Ironshore Insurance’s professional liability facility, IronPro, […]

By Canadian Underwriter | April 15, 2008

2 min read

Claims

U.S. tornado losses approaching those of hurricanes

Losses of US$1 billion and higher from single tornado events are becoming more frequent, approaching hurricane damage losses, A.M. Best warns in a special report.Already in 2008, insured losses from severe weather systems have surpassed US$1 billion about US$850 million stemming from the tornado outbreak in the U.S. mid-South on Feb. 5 and Feb. 6, […]

By Canadian Underwriter | April 11, 2008

2 min read

Claims

Researchers increase probability of U.S. major hurricane landfall

Researchers at Colorado State University are predicting an above-average probability of a major hurricane landfall in the United States in 2008.Philip Klotzbach and William Gray, researchers in the university’s department of atmospheric science, foresee a “well-above-average Atlantic basin tropical cyclone season” in their 2008 extended forecast.The team predicts 15 named storms in 2008, increasing from […]

By Canadian Underwriter | April 10, 2008

1 min read

Climate change a challenge for countries with emerging economic, insurance markets

Climate change is presenting particular challenges to countries with emerging market economies especially as the take-up of insurance in these areas increases, according to an article published by Munich Re.”Climate change presents a particular challenge to fast-growing emerging countries like India”, says Torsten Jeworrek of Munich Re’s board of management. “In conjunction with greater prosperity […]

1 min read

Subprime liability claims could reach US$9 billion

Litigation surrounding subprime exposure will result in D&O liability and E&O insurance claims estimated at between US$3 billion and US$4 billion and possibly as high as US$9 billion, Fitch Ratings reports.Insurers’ potential losses could be substantially higher if credit issues spread to sectors not directly tied to the subprime mortgage market, or if market conditions […]

1 min read

OSFI to focus on quick identification of emerging risks in next three years

The Office of the Superintendent of Financial Institutions (OSFI) says enhanced identification of emerging risks is Priority 1 for the next three years.The regulator intends to improve its ability to identify emerging risks through more inter-sector communication, more focus on market information, and more comparative reviews (e.g. stress testing, liquidity management, securitization and valuation practices), […]

1 min read

2007 trends paint grim picture for next three years

Extrapolating 2007 financial trends forward three years presents two grim scenarios, especially one in which a major catastrophe strikes.Jane Voll, Insurance Bureau of Canada’s chief economist and VP policy, presented two scenarios to people attending Swiss Re’s Canadian Insurance Outlook breakfast, one of which included a major, Cdn$1.5-billion catastrophe. The first scenario assumes a catastrophe-free […]

1 min read

What’s New: In Brief (April 03, 2008)

The European Commission’s Solvency II Directive is expected to increase substantially regulatory capital requirements for most European insurers, although no extra capital is likely to be required for the market as a whole.A.M. Best’s review of Solvency II’s implications found that under the new regime, slated to take effect in 2012, insurers will have a […]

2 min read

What’s New: In Brief (April 03, 2008)

Independent Financial Brokers of Canada (IFB) is providing corporate errors and omissions coverage for life insurance agencies. The coverage, underwritten by Echelon General Insurance Company, is being offered as a solution for those caught in the gap between regulatory requirement and fiscal reality, the IFB reports in a release. “As was noted in a Notice […]

1 min read