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Weekly News Roundup, July 19

2024-07-19 09:15 COVU COVU News Insurance Insurance Advice Insurance Agency Press Release News Blog Cyberattack Hurricanes
In this week's news will talk about how Global P&C reinsurers remain strong in Q1 2024, QBE launches global cyber coverage, and much more…

IMA Financial Group partners with FC Underwriters

Insurance brokerage firm IMA Financial Group has announced a partnership with FC Underwriters LLC, which will be a division of IMA’s Eydent Insurance Services LLC.

“FC Underwriters LLC showcases how the MGA market is poised for expansion with a highly skilled team that has demonstrated the ability to develop specialty insurance products, a robust distribution network that provides strong support to agencies and a willingness to embrace the latest insurtech advancements for the betterment of their business and client base,” said John Briggs, president of Eydent Insurance Services.

Eydent Insurance Services is a firm under IMA that specializes in providing commercial property and casualty alternative risk solutions for specialty niche programs all over the country. It provides program management, policy issuance, loss control, claims assistance, program marketing, carrier alignment, and all of the systems for agents and carriers’ success.

Global P&C reinsurers remain strong in Q1 2024

The first quarter of 2024 has been positive for global property and casualty (P&C) reinsurers as the industry recorded strong underwriting and investment profitability from January to June 2024, benefiting from the ongoing favourable reinsurance pricing environment, lower natural catastrophe losses, and strong fixed income yields, according to a Morning Star DBRS report. However, as hurricane season approaches, and with the continued global economic uncertainty, there could be some challenges ahead.

According to the report, underwriting income was strong for the year’s first three months, as proven by the overall low combined ratios for the selected reinsurers. The average combined ratio for the selected group of reinsurers was 84.2% for Q1 2024, the report stated – 5.8% lower compared to the same period in 2023.

“Overall, the reinsurance pricing environment remains favourable. Reinsurers were able to charge higher rates while also increasing contract volume during the first quarter of 2024. This can mainly be attributed to the persistent hard market conditions, which give the reinsurers higher pricing power and the ability to underwrite with more favourable terms. The industry experienced significantly lower-than-expected natural catastrophe losses in Q1 2024,” the report said.

Mercury Insurance partners with UCLA for climate change impact research

Property and casualty carrier Mercury Insurance has announced a strategic partnership with the UCLA Anderson Forecast to research the growing impact and implications of climate change on the California economy.

The collaboration aims to create a roadmap for California and California-based businesses, like Mercury, to support residents facing increased risk from extreme climate events.

Mercury Insurance stated that it has invested significantly in recent years to better understand the impact of climate change on the company and its customers. These efforts have influenced how Mercury operates and manages catastrophic weather risks.

Swiss Re rethinks its wildfire underwriting approach with latest technology

Wildfires are an escalating threat, consistently surpassing historical records. Since 2000, they have consumed 7 million acres annually, double the yearly acreage burned in the 1990s, according to Swiss Re.

According to a report from the reinsurer, this trend shows little sign of abating. In 2023, wildfires in Hawaii led to the largest insured loss from any natural catastrophe event ever seen in the state, in a region previously considered to have low catastrophe risk.

The Smokehouse Creek fire, burning more than 1.2 million acres, was the largest ever in Texas. These events underscore the urgent need for proactive measures to mitigate these risks.

Swiss Re, in collaboration with Bellwether, announced that it is using AI and comprehensive data harvesting to enhance underwriting capabilities for insurers facing wildfire risk.

QBE launches global cyber coverage

On July 16, 2024, QBE Insurance announced its new policy, QCyberProtect. It's designed to enhance cyber resilience for a broad range of clients worldwide.

The new policy aims to provide tailored coverage for losses arising from current and emerging cyber risks. These include network security, privacy liability, IT and non-IT business interruptions, and reputational loss.

“Strategic investments in our cyber capabilities have strengthened our ability to shield our clients from the most pressing cyber threats,” said Andrew Horton, group CEO of QBE Insurance. “This offering highlights our commitment to delivering globally consistent and practical solutions that address the ever-evolving cyber risks our customers face around the world.”