Of Special Interest


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1st November 2020

Newslink Global Insurance Trends-Editor's Weekly Overview

This week, The Geneva Association, in collaboration with the University of St. Gallen, issued a new evidence-based study on the risk-taking capacities of insurers related to pandemics-"An Investigation into the Insurability of Pandemic Risk". Amongst the report’s main findings are that, encouragingly, health and life risks for a pandemic resembling COVID-19 pose no fundamental insurability challenges. However, P&C insurers have nowhere near the capacity needed to shoulder projected global output losses of more than $4tr for 2020. By comparison, they collect $1.6tr in annual premiums, with just $30bn for business interruption policies-a follow-up report "Public-and Private-Sector Solutions to Pandemic Risk" will be published before the end of the year. S&P Global Ratings reported that investment caution had paid off for global reinsurers. Meanwhile, solid investor appetite for new and mature opportunities in the InsurTech sector was again in evidence during Q3 2020, as $2.5bn was raised by InsurTech firms across 104 deals, up 63% and 41% respectively over the prior quarter. Deals included two $500m rounds, but the mid-tier funding gap for firms seeking investments in the $20m to $50m range has widened, according to the latest Quarterly InsurTech Briefing from Willis Towers Watson.
Insurance Europe published a response to a consultation by the European Commission(EC) on the review of Solvency II, whilst The Global Federation of Insurance Associations(GFIA) published its new Annual Report, which details the federation’s activities on a wide range of topics. These include the industry’s role in addressing pandemic risk and the risks resulting from climate change, why trade barriers threaten local resilience, and the need to support private pensions savings, despite short-term pressures. The Pensions Dashboard Programme in the UK have announced a timeline for the development of pensions dashboards-the Association of British Insurers(ABI), a prime mover involved in the development of the prototype, commented. The CII Society of Underwriting Professionals revealed its plans for the second year, and the Motor Insurers' Bureau(MIB) were involved in a week-long campaign with police to help reduce uninsured driving levels in UK.
Duck Creek Technologies announced that it has joined the Madrid FinTech(MAD FinTech) Cluster, as one of more than 100 founder companies of this initiative which has worked in its 14 Commissions and 5 Working Groups since day one. The Cluster’s goal is to convert Madrid into a world FinTech capital by gathering the most innovative companies in the financial and insurance/InsurTech industries–as well as there associations and both public and private institutions–to boost and develop the ecosystem in Madrid and throughout Spain. Whitespace announced its partnership with Iowa-based GuideOne National on its new entirely digitalised energy MGU, Career General Agency(CGA). Sompo Asia transformed and enhanced its insurance pricing platform with Willis Towers Watson.
Financial reports included Chubb, RennaisanceRe,and Swiss Re who had a better third quarter. Swiss Re Corporate Solutions signed an MoU with Württembergische Versicherung to configure its IPA platform, and Swiss Re also announced it is to join The Trinity Challenge, a global coalition that aims to better predict and prevent outbreaks, epidemics and pandemics by harnessing the power of data and analytics. AIG named Peter S. Zaffino ceo, effective 1st March 2021, in addition to his current role as president of the company, and also announced its intention to separate its Life & Retirement business. There were also senior appointments at MS Amlin and the London Market Group(LMG).


With the COVID-19 pandemic necessitating a dispersed workforce resulting in a surge in digitisation, climate change ongoing issues, growing cyber threats, and public trust a continuing challenge, there is an increasing need for key staff to keep in touch with global market trends and to be able to speedily drill down on areas of interest and print/email an automatic report.
Full articles on the topics in the Editor's Weekly Overview above are included in those added this week to the unique Insurance Newslink Global Trends Database Research Matrix service at www.onlystrategic.com

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