In this week's news will talk about how First West Insurance joins Inszone as part of California expansion, Insurers brace for up to $15 billion in losses if Helene hits Tallahassee, and much more…
IFRC announces first-ever insurance payout for disaster fund
The International Federation of Red Cross and Red Crescent Societies (IFRC) has announced a historic milestone in humanitarian finance: for the first time, the Disaster Response Emergency Fund (DREF) has triggered an insurance payout due to rising demands for disaster relief surpassing its established deductible threshold.
The IFRC-DREF is a funding mechanism designed to provide immediate assistance to National Red Cross and Red Crescent Societies during disasters, particularly for smaller emergencies that might not receive global attention. According to a news release, the fund often faced challenges with depleting resources before the end of the year, prompting the IFRC to pursue an innovative solution. The IFRC secured an indemnity insurance policy with global broker Aon and its reinsurers.
Since early 2023, the DREF has been insured on an indemnity basis for an annual premium of CHF 3 million (approximately $3.4 million). The insurance policy allows for a potential payout of up to CHF 15 million ($16.8 million) when demands on the DREF related to natural hazard disasters exceed a deductible threshold of CHF 33 million in a calendar year. Once this threshold is surpassed, the commercial insurance will cover further demands on the fund.
The IFRC-DREF is a funding mechanism designed to provide immediate assistance to National Red Cross and Red Crescent Societies during disasters, particularly for smaller emergencies that might not receive global attention. According to a news release, the fund often faced challenges with depleting resources before the end of the year, prompting the IFRC to pursue an innovative solution. The IFRC secured an indemnity insurance policy with global broker Aon and its reinsurers.
Since early 2023, the DREF has been insured on an indemnity basis for an annual premium of CHF 3 million (approximately $3.4 million). The insurance policy allows for a potential payout of up to CHF 15 million ($16.8 million) when demands on the DREF related to natural hazard disasters exceed a deductible threshold of CHF 33 million in a calendar year. Once this threshold is surpassed, the commercial insurance will cover further demands on the fund.
Insurers brace for up to $15 billion in losses if Helene hits Tallahassee
Insurers could face potential losses of up to $15 billion if Hurricane Helene makes landfall near Tallahassee, according to Jerry Theodorou, director of finance, insurance, and trade policy at the R Street Institute.
According to a report from AM Best, should the storm make landfall in the more sparsely populated Horseshoe/Suwannee area, located southeast of Tallahassee but north of Tampa, R Street’s estimate drops to single-digit billions, excluding insured flood losses.
Aon highlighted on Sept. 26 that Helene is an unusually large hurricane with a higher-than-average likelihood of strong winds reaching inland. The firm compared Helene to past Gulf of Mexico hurricanes, noting that it is at the upper bound in terms of size.
According to a report from AM Best, should the storm make landfall in the more sparsely populated Horseshoe/Suwannee area, located southeast of Tallahassee but north of Tampa, R Street’s estimate drops to single-digit billions, excluding insured flood losses.
Aon highlighted on Sept. 26 that Helene is an unusually large hurricane with a higher-than-average likelihood of strong winds reaching inland. The firm compared Helene to past Gulf of Mexico hurricanes, noting that it is at the upper bound in terms of size.
First West Insurance joins Inszone as part of California expansion
Inszone Insurance Services has acquired First West Insurance Agency, an independent insurance agency that has served Huntington Beach and Fountain Valley since 1968.
Inszone said that the acquisition is part of its strategy to expand its presence in California.
First established as Shearer Insurance in 1968, the company merged with First West Insurance Agency in 1979, rebranding and expanding its services. The agency has focused primarily on personal lines insurance throughout California.
Phil Shearer joined the agency in 1983, following his father’s career path after graduating from San Diego State. Initially working as a commercial lines agent, Phil eventually assumed leadership of the business. Kristen Shearer joined the agency in 1998, managing accounting operations, allowing the team to focus on client service.
Inszone said that the acquisition is part of its strategy to expand its presence in California.
First established as Shearer Insurance in 1968, the company merged with First West Insurance Agency in 1979, rebranding and expanding its services. The agency has focused primarily on personal lines insurance throughout California.
Phil Shearer joined the agency in 1983, following his father’s career path after graduating from San Diego State. Initially working as a commercial lines agent, Phil eventually assumed leadership of the business. Kristen Shearer joined the agency in 1998, managing accounting operations, allowing the team to focus on client service.
What's happening to the US commercial insurance market?
The commercial insurance market is currently favorable for most buyers, but economic and industry uncertainties create a sense of caution, according to Lockton’s latest Market Update.
The report provides a comprehensive look at market trends, economic indicators, and emerging risks that could impact insurance purchasing strategies in the US. The September edition, in particular, looks at post-election priorities, among other things.
Mark Moitoso, risk practices leader at Lockton, noted: “We’re seeing generally favorable market conditions – some of the best we have seen in the last five years – and with insurers reporting strong profits, there’s reason for continued optimism.
The report provides a comprehensive look at market trends, economic indicators, and emerging risks that could impact insurance purchasing strategies in the US. The September edition, in particular, looks at post-election priorities, among other things.
Mark Moitoso, risk practices leader at Lockton, noted: “We’re seeing generally favorable market conditions – some of the best we have seen in the last five years – and with insurers reporting strong profits, there’s reason for continued optimism.
King Risk Partners continues expansion
King Risk Partners has acquired Cypress Risk Management for an undisclosed sum.
Part of King Risk Partners’ strategy to broaden its reach and enhance services in targeted sectors along the Eastern Seaboard, the swoop for the South Carolina-based insurance agency comes on the heels of Virginia-based Coates Insurance Agency’s integration into King Risk Partners.
Cypress, founded in 2012 in Ridgeville, has built a strong reputation serving the forestry and trucking industries. Known for fostering close relationships with its clients, Cypress has leveraged its team’s agricultural and business backgrounds to craft tailored insurance solutions for local businesses.
King Risk Partners chief executive Malcolm King noted: “Their niche expertise, combined with their dedication to excellent customer service, aligns perfectly with our mission to provide specialized, client-focused insurance solutions.
Part of King Risk Partners’ strategy to broaden its reach and enhance services in targeted sectors along the Eastern Seaboard, the swoop for the South Carolina-based insurance agency comes on the heels of Virginia-based Coates Insurance Agency’s integration into King Risk Partners.
Cypress, founded in 2012 in Ridgeville, has built a strong reputation serving the forestry and trucking industries. Known for fostering close relationships with its clients, Cypress has leveraged its team’s agricultural and business backgrounds to craft tailored insurance solutions for local businesses.
King Risk Partners chief executive Malcolm King noted: “Their niche expertise, combined with their dedication to excellent customer service, aligns perfectly with our mission to provide specialized, client-focused insurance solutions.
