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26th July 2020
Newslink Global Insurance Trends-Editor's Weekly Overview
Trend
This week, global reinsurers made the headlines-Swiss Re finalised the sale of ReAssure Group to Phoenix-its capital position was bolstered after $2.5bn claims and reserves related to COVID-19 before tax in the first half. Munich Re reported better than expected second quarter losses despite about E700m of COVID-19-related claims in reinsurance, and SCOR said it is demonstrating its capacity to absorb the impact of the COVID-19 crisis, both operationally and financially, and has been proactive in taking immediate actions to help stop the spread of the pandemic. Lloyd's approved a new specialised syndicate to insure transportation of COVID-19 vaccine to emerging economies.
Aon reported that the global economy absorbed $75bn in natural disaster losses in the first half. Ultra-low yields and the COVID-19 crisis are significantly affecting the European insurance sector according to a EIOPA report. The London Market Group(LMG) launched a paper outlining an ambitious approach to free trade in financial services using the forthcoming UK-Switzerland trade discussions as a template for an approach to other third countries. The Chartered Insurance Institute(CII)is to work with the International Association for Sustainable Economy(IASE) and Insurance Europe published a response to a consultation by the EC on its sustainable finance strategy.
Cyber issues again came to the fore. GFIA published a response to a consultation by the Financial Stability Board(FSB) on its report on effective practices for cyber incident response and recovery. The Geneva Association and the International Forum of Terrorism Risk (Re)Insurance Pools(IFTRIP) released the first in a series of three reports on cyber terror and cyber war(CTCW). 43% of employees in research from the UK and US have made mistakes resulting in cybersecurity repercussions for themselves or their company, according to a new report from email security firm, Tessian, whilst a report from Barracuda indicated that one third of hackers dwell in hijacked email accounts for more than a week.
Majesco has announced that it has signed a definitive agreement to be acquired by Thoma Bravo, a leading private equity firm focused on the software and technology-enabled services sectors, in a transaction valuing the company at $594m. Sapiens has tailored its IDITSuite for Property & Casualty and ReinsuranceMaster to the DACH region after acquiring InsurTech sum.cumo, and SSP is the latest vendor to join the growing Willis Towers Watson Radar Live Collaboration programme.
Beazley reported a loss for the first half but achieved a good growth rate. Willis Re Securities completed a E100m ‘Azzurro Re II DAC’ catastrophe bond for UnipolSai. There were senior appointments at Fidelis, Tokio Marine Kiln(TMK), Swiss Re, and Tysers.
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