Tag: AM BestTV

AM Best: Market dislocation drives growth for U.S. surplus lines (AM BestTV)

Post author By Michelle Dryden
Post date September 15, 2020
No Comments on AM Best: Market dislocation drives growth for U.S. surplus lines (AM BestTV)

OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of ^AMBestTV, David Blades and Robert Raber, both associate directors, AM Best, said some excess and surplus lines insurers experienced a 15-year high in premium gains during 2019. Click on http://www.ambest.com/v.asp?v=surpluslines920 to view the entire program.

Blades highlighted the level of U.S. surplus lines business volume in 2019.

“The U.S. surplus lines premium volume increased considerably,” said Blades. “In particular, U.S. surplus lines companies that write more than 50% of their total business on a surplus lines basis increased their direct premium written by almost 15%, the highest level of growth since 2006. The entire surplus lines market, including business that is written by the Lloyd’s market syndicates, grew by 11.2% in 2019.”

Raber said the COVID-19-fueled economic shifts that have impacted the surplus lines market.

“The flow of new businesses definitely changed in two different directions,” said Raber. “First, there was a temporary decline in new business coming into the U.S. surplus lines market beginning in late March and into early April, as the stay-at-home and shelter-in-place orders were implemented across the country. At the same time, rates are continuing to rise. AM Best’s expectation is that conditions are going to persist in the short term for the continuing rising of rates, as it continues to be a hardening market.”

Looking at the balance of 2020 and into 2021, AM Best anticipates this sector will continue to show resiliency.

To access the related market segment report, titled, “Expanding Opportunities Bolster Surplus Lines Growth and Operating Results,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=300916.

Recent ^AMBestTV coverage includes:

AM Best: Canada Property/Casualty Insurers Well-Positioned; Life Writers Face Volatility in 2020: Brian Lynch and Anthony McSwieney, senior financial analysts, AM Best, said 2020 has brought fewer property/casualty (P/C) claims, but has increased investment uncertainty in the Canada market: http://www.ambest.com/v.asp?v=ambcanada920.
Hardening Market Driving Bermuda Captive Growth: Captive insurers old and new are writing more business during the hardening market, according to a panel focused on the Bermuda landscape: http://www.ambest.com/v.asp?v=ambcaptives920.
Hard Market Driving Interest in Captives: The pandemic, economic downturn and higher insurance rates have increased interest in captive insurers, said panelists in a recent AM Best webinar: http://www.ambest.com/v.asp?v=ambcaptiverecut920.
New Data Sources, AI Changing Commercial Underwriting: The “explosion of digital economy” and use of artificial intelligence is improving underwriting, according to the “Using New Data to Out-Select the Competition,” panel: http://www.ambest.com/v.asp?v=carpedata920.

^AMBestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View ^AMBestTV episodes at www.ambest.tv.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Tags #AMBest, #Growth, AM BestTV, Lines, market, Surplus, Surplus#AMBest

Business

AM Best: Pandemic, economic issues dampen Chile insurance market (AM BestTV)

Post author By Michelle Dryden
Post date August 22, 2020
No Comments on AM Best: Pandemic, economic issues dampen Chile insurance market (AM BestTV)

OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of ^AMBestTV, Eli Sanchez, associate director, AM Best, said the rating agency’s negative market segment outlook on Chile’s insurance sector is based on declines in insurance activity, tied to the pandemic and longer-running economic issues. Click on http://www.ambest.com/v.asp?v=chileoutlook_english720 to view the entire program.

Sanchez addressed to what extent COVID-19 is affecting insurers in Chile.

“As of March 2020, there has been a 10% contraction in the overall insurance industry,” said Sanchez. “There was a contraction of around 1.8% last year. AM Best has seen declines, especially in the life side, related to annuities, some accident and health, as well as the property/casualty segment. Additionally, there has been lower economic activity. As of May, the monthly economic indicator contracted by approximately 15%. That puts a lot of pressure on underlying industries that use insurance as a way of protecting its relative assets.”

Chile is having economic problems that the pandemic has exacerbated. Sanchez spoke about how COVID-19 has affected insurers’ ability to grow.

“With lower global economic activity, there have been tensions, specifically commercial tensions between China and the United States. These countries are important partners for Chile. These tensions have created a lot of flight to quality, which have threaten the Chilean peso. In addition, with the tensions in trade, copper prices have come down. That limits a lot of the growth that could happen in the country, which in turn affects a lot that could happen in the demand for insurance.”

To view this video in Spanish, please go to http://www.ambest.com/v.asp?v=chileoutlook_spanish720.

To access the related market segment report, titled, “Market Segment Outlook: Chile Insurance,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=532765.

Recent ^AMBestTV coverage includes:

AM Best: Cyber Insurance Profitability Challenged by New Risks: AM Best analysts say standalone cyber insurance premiums are growing as companies reduce silent cyber risk: http://www.ambest.com/v.asp?v=ambcyber720.
BDO Director: Companies Should Review Hurricane Response Plans: The COVID-19 pandemic adds a layer of complexity to hurricane response plans, said James MacDonnell, director of crisis management/ business continuity at BDO, an advisory firm: http://www.ambest.com/v.asp?v=macdonnell820.
ITC Conference Expands to Month Long ‘Celebration of Insurtech Innovation’: InsureTech Connect is launching ‘ITC September to Remember’ leading up to its flagship global conference, said Mee-Jung Jang, president, InsureTech Connect: http://www.ambest.com/v.asp?v=itc820.
Allianz: Docked Cruise Ships in Hurricane-Prone Areas Are ‘Hot Spots’ to Watch: Cruise ships grounded due to the pandemic are among risks requiring “constant vigilance,” said Andrew Kinsey, senior marine risk consultant, Allianz Global Corporate & Specialty: http://www.ambest.com/v.asp?v=covidshipping820.

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Tags #Issues, #Pandemic, #Peso, #Risks, AM Best, AM BestTV, Chile, China, COVID-19, economic, Insurance, prices, prices#Issues

Business

AM BestTV presents ‘An Industry Transformed’: Digitally native, not by choice

Post author By Michelle Dryden
Post date August 17, 2020
No Comments on AM BestTV presents ‘An Industry Transformed’: Digitally native, not by choice

OLDWICK, N.J.–(BUSINESS WIRE)–Top industry leaders share their thoughts about the pandemic and its impact on the insurance industry in the four-part series, “An Industry Transformed.”

Insurers are learning how to operate, distribute and respond in an all-digital environment. In this segment, a panel discusses the lessons insurers learned during the shutdown, and how they are reshaping operations, sales, product delivery and customer interactions. Watch now: www.ambest.com/ambtv/digital.

Panelists include:

Bill Pieroni, president and chief executive officer, ACORD;
Sean Ringsted, executive vice president, chief risk officer and chief digital officer, Chubb Group; and
Tanguy Catlin, senior partner, McKinsey & Company.

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Tags #Choice, #Pandemic, #Shutdown, #Transformed, AM BestTV, Bill Pieroni, Digitally, industry, Insurance, native, native#Choice

Business

AM Best: India non-life market facing challenges (AM BestTV)

Post author By Michelle Dryden
Post date July 18, 2020
No Comments on AM Best: India non-life market facing challenges (AM BestTV)

OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of ^AMBestTV, Myles Gould, director, analytics, and Yuan Tian, senior financial analyst, both of AM Best, said that competition, poor pricing discipline and investments challenge the India non-life market. Click on http://www.ambest.com/v.asp?v=india620 to view the entire program.

AM Best has a market segment outlook of negative on India’s non-life market. Gould addressed the key factors that are driving the negative outlook.

“Key factors underpinning the negative outlook include the competitive market conditions in core lines of business along with poor pricing discipline,” said Gould. “Furthermore, there is an unhealthy reliance on unrealized and realized gains from investment holdings, particularly emanating from typically high-risk investment strategies. In addition, a more recent dynamic is that of the global COVID-19 pandemic, which is expected to result in a level of volatility in top-line and bottom-line results of Indian non-life insurance.”

Tian highlighted the reasons for the imbalance in the non-life market operating results.

“The market has been quite a loss-making on the writing side,” said Tian. “So the insurance companies in this market have been relying on investment returns to generate overall positive operating earnings. The companies have been quite aggressive investing in high-risk asset classes such as equity, low-quality fixed income and real estate assets. Those asset classes have been generating quite good returns over the last years. However, during the pandemic, the stock market has fallen by over 20% in the first quarter. This has impacted the capital position and earnings of non-life insurers.”

To access the related market segment report, titled, “Market Segment Outlook: India Non-Life,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=297272.

Recent episodes of ^AMBestTV include:

AM Best: Insurers Boost Private Equity Holdings 10% in 2019: Jason Hopper, associate director, industry research and analytics of AM Best, said that insurers have increased their private equity holdings by 10% year over year to $81 billion in 2019: http://www.ambest.com/v.asp?v=privateequity620.
AM Best: Florida Personal Property Writers Challenged Even Without a Hurricane: Michelle Baurkot, director, and Chris Draghi, senior financial analyst, both of AM Best, said that Florida writers struggled to turn a 2019 underwriting profit even with the absence of a major hurricane: http://www.ambest.com/v.asp?v=ambfloridareport720.
Insurtech Movement Joins Forces for Week of Presentations: The formation of the Northeast Insurtech Alliance, which is made up of innovation-focused executives from five organizations throughout the northeastern United States: http://www.ambest.com/v.asp?v=northeastinsurtechalliance720.
AM Best: Workers’ Comp Writers Brace for COVID-19 Hit: Decreased premiums and unexpected claims could negatively impact workers’ compensation writers, said Sridhar Manyem, director, and Dan Mangano, financial analyst, both of AM Best: http://www.ambest.com/v.asp?v=workerscomp620.

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Tags AM Best, AM BestTV, COVID-19, Global Credit Agency, India, Insurers, Investment, market, Non-life, Non-lifeAM Best