Inside FAC January 2019
While underwriters and brokers alike are understandably cautious about talking up the direct and facultative (D&F) and specialty markets ahead of 1 April renewals, all indications are that there are likely to be rate rises across the piece.
Primary markets in the direct and facultative (D&F) and specialty classes are reporting meaningful rate increases for recently renewing business, with further hardening in prospect for major renewals at 1 April and beyond.
The renewable energy market is showing signs of hardening rates for solar and wind projects, following some disappointing results for carriers’ power and energy books and the impact of hurricanes Harvey, Irma and Maria (HIM).
The niche space (re)insurance sector is set to go into the red for full-year 2018 as losses stemming from the “launch plus” segment threaten to outstrip annual market premium for the entire space market.
Willis Re has estimated industry insured losses from major natural catastrophes in 2018 at around $71.5bn – $8.5bn less than the highest loss estimate to date, from Munich Re.
With California’s Camp Fire set to become the costliest natural catastrophe event of 2018, individual exposures to industry wildfire losses in the state are already becoming apparent.
The WorldView-4 digital imaging satellite, which has experienced a major malfunction in orbit, is likely to generate a significant claim against the $183mn launch insurance programme for operator DigitalGlobe.
The downstream energy market could be approaching a “Rubicon moment” in 2019, after significant property damage (PD) and business interruption (BI) losses outstripped total premiums in 2018, according to JLT Specialty.
Catastrophe data specialist Perils has issued its final loss estimate for Storm Eleanor, the extratropical cyclone which was known as Burglind in Germany, at EUR756mn ($860mn).
Insured losses from the tsunami that hit Indonesia on 22 December, following an eruption of the Anak Krakatau volcano, are likely to total around 15.9tn rupiah ($1.1bn), according to local carriers.
AIR Worldwide has estimated that the insured loss for the Marriott hotels data breach could be between $200mn and $600mn.
Insured losses from the hailstorm that struck Sydney, Australia’s Central Coast and southeast Queensland on 20 December have reached A$673.9mn ($480.7mn), according to the Insurance Council of Australia (ICA).
Catastrophe loss data aggregator Perils has issued a fourth and final estimate for insured property losses from Storm Friederike of EUR1.672bn ($1.9bn).
Marsh has announced another round of senior appointments at the newly created Marsh-JLT Specialty division.
Aon’s Santé accident and health (A&H) treaty facility has signed Liberty Specialty Markets (LSM) as lead underwriter for 1 January.
The muted impact of 2018 catastrophes on property rates at January renewals has created questions over pricing adequacy, underwriting strategy and levels of capital, according to Guy Carpenter.
The fac market is at ‘a great moment’, says Swiss Re’s Beat Strebel, and should take full advantage with greater innovation and proactivity
It’s been a tough time for the Mexican fac market of late, with the promised land of harder pricing failing to materialise despite a spate of sustained losses. Marcus Alcock investigates
Modelling cat risk for renewable energy projects came unstuck with recent hurricanes, finds David Benyon, but the nascent battery storage sector poses some altogether different challenges for (re)insurers…
London-based MGA Aurous Risk Partners has hired Qatar Re’s Animesh Majrekar and Rob Little to write new downstream and upstream energy portfolios, respectively.
So, after six and a half glorious years spent within eyeshot of the Tower of London (and, less inspiring, the pink Lego-Gothic horror of Minster Court) Inside FAC is moving, along with the rest of the Insider team, to be closer to God (or to St Paul’s Cathedral, at any rate).