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Weekly News Roundup, May10

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In this week's news will talk about how Triple-I predicts increase in US P&C replacement costs, Churches across America face insurance turbulence and much more…

Howden Re releases report on cyber reinsurance market

Howden Re, Howden Group’s reinsurance and risk advisory arm, has released a report on the landscape of cyber reinsurance.

In its ‘Re-framing cyber risk: navigating threats and embracing opportunities’ report, the firm found that the rewards that are offered were usually underestimated relative to the exposure to a natural catastrophe.

“Cyber risks consistently top the rankings of risk managers’ concerns. To stay relevant to those buyers of insurance, as an industry it is imperative that we embrace this class of business,” said global head of cyber at Howden Re, Luke Foord-Kelcey.

Churches across America face insurance turbulence

Churches are battling to obtain affordable insurance cover as insurers rethink their taste for the religious institutions space.
Downgrade-hit Brotherhood Mutual and under review Church Mutual have been shrinking their appetites and shying away from loss-laden religious institutions. And the specialists aren’t alone in looking to trim down their business, insurance brokers told IBA.

Insurance agencies have been fielding calls from clients regarding Nationwide, also said to be rethinking the amount of church business it takes on. State Farm’s exit from “some areas” has also had an impact, insurance brokers said.

Triple-I predicts increase in US P&C replacement costs

A report from Insurance Information Institute (Triple-I) shows that the growth of replacement costs for US property & casualty (P&C) insurance has slowed, falling behind overall inflation. At the same time, however, it predicts that this trend is likely to reverse, with P&C replacement costs expected to grow faster than overall inflation by 2026.

According to Triple-I’s latest Insurance Economics Outlook, replacement costs for P&C insurance grew by 1.5% in the first half of 2024, which is significantly lower than the overall inflation rate of 3.5%. This dip in replacement cost growth could offer some short-term relief to insurers, as the outlook suggests that pressures from rising replacement costs will intensify within the next two years, likely leading to increases in insurance premiums.

Unum Group launches new pet insurance

Unum Group has announced the launch of Unum Pet Insurance, a new voluntary benefit offering aimed at providing comprehensive coverage for pets. This addition to Unum’s portfolio of workplace benefits and services is in response to the growing demand for pet-related benefits among employees and aims to offer a holistic approach to family care.

Unum Pet Insurance will be provided by Nationwide, a pet insurance provider with over four decades of experience. It offers coverage for a variety of needs, including accidents, illnesses, wellness, and preventative care.

Tim Arnold, Unum Group’s executive vice president of voluntary benefits and president of Colonial Life, emphasized the evolving needs of today’s workforce.

Fannie and Freddie Hit Pause on Replacement-Value Requirements for Home Insurance

Property insurance groups on Wednesday applauded a decision by Fannie Mae and Freddie Mac to hold off on an apparent plan to scrutinize mortgages on homes that don’t carry full replacement-value insurance coverage.

The decision by Fannie and Freddie to temporarily suspend enforcement of some guidelines now “creates an opportunity to speak with insurers and other stakeholders to gather more information about the problem of underinsurance, what they can do to help, and how they can best go about it,” the National Association of Mutual Insurance Companies’ Jimi Grande said in a statement Wednesday.