Douglas Shillito
This week, Aon's 2017 Global Risk Management Survey emphasized that unprecedented volatility is adding new urgency and complexity to old risks. A joint report by Autonomous Research and Willis Towers Watson highlighted that the insurance sector is at risk of being further marginalised by investors as performance reporting becomes more complicated as a result of Solvency II. ILS capital grew again in Q1 2017, continuing the trend from 2016, according to the latest ILS Market Update from Willis Towers Watson Securities. Commercial insurance brokers will need to have evolved into real business advisors for their SME customers by 2027 or face extinction, said a new Chartered Insurance Institute (CII) report. Another new report revealed that diversity and inclusion was progressing in the Lloyd's market, and specialist motor insurer ERS estimated UK car insurance premiums could rise by up to 29% by the end of the year. The Lloyd’s Market Association (LMA) and the UK’s Managing General Agents’ Association (MGAA) formalised a reciprocal working relationship as part of the LMA’s delegated authorities communications framework. The 2017 recipients of the Shin Research Excellence Award were announced.
Aviva acquired the remaining 50% of its Vietnam Life JV and signed a new distribution agreement with VietinBank. South Korean ING Life priced its IPO, and Ping An became the world’s most valuable insurance brand. Joachim Wenning took over as the new Chairman of the Board of Management at Munich Re from Nikolaus von Bomhard, and Hamilton Re agreed to acquire the renewal rights to Canopius Underwriting Bermuda’s (Sompo Canopius) excess casualty insurance book. UK personal lines broker Swinton is to cut back branches and staff as more customers go online.
First quarter results started to flow. They included Arch Capital (improved), AXIS Capital (net income down), Everest Re (hit a high spot), SCOR (strong start), Validus ("another good quarter"), W.R. Berkley (favourable first quarter), XL Group ("solid performance, focused growth and continuing lower operating expenses" says CEO McGavick), AIA (record growth in value of new business of 55%), Chubb (strong opening quarter), QIC (good growth), and St. James' Place (continued impressive growth). Towergate reported 2016 figures ("a milestone moment"). There were senior appointments at Ed, Liberty Specialty Markets, and LV=. London Market Group (LMG) re-appointed Nicolas Aubert as chairman.
AIR Worldwide released ARC (Analytics of Risk from Cyber), a comprehensive cyber risk modelling application for the insurance/reinsurance markets. Sapiens launched its full Life Insurance Transformation Suite, and announced that StoneRiver solutions had been chosen by Illinois-based Catholic Order of Foresters. Willis Towers Watson released an updated version of its Unify systems integration and workflow platform to aid Solvency II reporting, and Watchstone is to sell, merge or IPO business units at "the optimum time" according to its Group CEO.
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com.