Claims

Growth potential huge for insurance-linked securities

The total volume of Insurance-linked Securities (ILS) outstanding has grown three-fold over the last five years, and is now close to US$23 billion, according to Swiss Re’s new sigma study “Securitization.”Life bonds account for two-thirds (or US$15 billion) of the total volume, whereas non-life bonds make up the remaining volume (US$8 billion).ILS provide insurers with […]

By Canadian Underwriter | December 12, 2006

1 min read

Claims

Swiss Re calls for TRIA extension

Swiss Re urged for the renewal of the Terrorism Risk Insurance Act (TRIA) during the reinsurer’s 2006 year-end economic forum and 2007 insurance industry review.Swiss Re based its position on the belief that the insurance industry isn’t equipped to deal with terrorism on its own, according to a report on the forum published by MarketWatch.According […]

By Canadian Underwriter | December 12, 2006

1 min read

Claims

Lloyd’s seven steps to managing the cycle

Insurers should refuse to ‘follow the herd,’ provide the right incentives for underwriters, and invest in risk management tools in order to successfully manage the insurance cycle, according to a report recently released by Lloyd’s of London.The report, Managing the Insurance Cycle, warns that there still exists a considerable amount of uncertainty regarding prices and […]

By Canadian Underwriter | December 8, 2006

2 min read

Claims

TSR predicts 2007 hurricane season will be much worse than 2006

A return to high hurricane activity in 2007 will likely follow the below-average 2006 hurricane season, according to climate forecaster Tropical Storm Risk (TSR).TSR says a 76% likelihood exists that U.S. land-falling hurricane activity in 2007 will fall among the top one-third of years historically.The study was led by the Benfield UCL Hazard Research Centre […]

By Canadian Underwriter | December 7, 2006

2 min read

U.K. insurers still need to improve risk management, regulator says

U.K. insurers have improved their risk management practices since 2003, but they still have a lot of work to do, according to the U.K. insurance industry’s regulator, the Financial Services Authority (FSA).The FSA’s most recent report, Insurance Sector Briefing: Risk Management in Insurers, is a study undertaken this year as a follow-up to the FSA’s […]

2 min read

Canadian insurers issuing quarterly risk reports, study finds

Canadian and Bermudian insurers are more likely than their U.S. or Asian/Pacific counterparts to deliver quarterly reports on risk to their boards, according to a study by Tillinghast of Towers Perrin.The study is Tillinghast’s fourth biennial survey of risk and capital management practices among insurers worldwide.The 2006 study focuses on a number of issues including […]

2 min read

Strong balance sheets for 2007, Swiss Re predicts

Year 2007 promises to be profitable for the insurance industry, experts at Swiss Re’s recent economic forum predict. “Balance sheets of most non-life insurers are very strong going into 2007 and we expect this to improve in 2007,” said Thomas Hess, chief economist at Swiss Re’s forum.A key to sustaining the profits “will be for […]

1 min read

U.S. commercial lines sector “stable,” despite decreasing rates

Standard & Poor’s Ratings Services is maintaining its stable outlook on the U.S. commercial lines sector, saying the effects of softening pricing won’t be felt on insurers’ balance sheets until about 2008.A “stable” outlook means S&P’s expects the number of upgrades and downgrades over the next six to 12 months to be fairly balanced, with […]

1 min read

Steel sector sees higher insurance rates, deductibles

The current boom in steel demand has triggered steep rises in insurance rates and deductibles in this sector, according to a recent report by Benfield.”The dynamics underpinning this move could also prompt similar action on the mining sector,” the report adds.Benfield’s FAC report notes that as the steel sector strives to maximize output, it is […]

2 min read

El Nino defuses 2006 hurricane season

As the 2006 Atlantic hurricane season comes to a close on Nov. 30, NOAA scientists announced that seasonal activity was lower than expected due to the rapid development of El Nio.The 2006 Atlantic hurricane season produced near-normal activity with a total of nine named storms including five hurricanes, two of which became major hurricanes of […]

2 min read