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Flood Losses Prompt Key Changes in Thai Insurance Industry

February 26, 2012 Comments off
Source:  A.M. Best
Insurers’ estimates of industry wide losses from the Thailand floods have increased 50% to USD 15 billion since A.M. Best’s last briefing on this event (Thai Flooding Brings Industrial, Business Interruption Claims), published Nov. 23, 2011. Such a loss would place the Thai floods in a tie for the fifth costliest insured loss event in the past 31 years.

Aon Benfield estimated the floods in Thailand have damaged or destroyed more than 4 million homes, businesses and manufacturing facilities. This has generated structural damage four times greater than what resulted from Japan’s earthquake and tsunami in March 2011, but only half of the total insured loss due to a low rate of insurance adoption.

It will take the industry significant time to reconcile the true impact of the floods because of a general lack of data on Thai exposures, the length and magnitude of the floods, and the complexity of business interruption and contingent business interruption (CBI) claims. As demonstrated by companies increasing fourth-quarter reserves for catastrophe events that occurred earlier in 2011, potential losses may creep upward throughout 2012. The Lloyd’s market has yet to release its net estimate of flood losses, which will include a material loss from Kiln Syndicate 1880. That syndicate’s loss currently is estimated at USD 700 million, and claims have been fully funded in cash by its sole capital provider and guarantor, Tokio Marine.
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Genworth 2011 Cost of Care Survey

July 30, 2011 Comments off

Genworth 2011 Cost of Care Survey (PDF)
Source: Genworth

Nearly two-thirds of people over age 65 will need long term care at home or through adult day health care, or care in an assisted living facility or nursing home. And while most people think of long term care as impacting only those in senior years, 40 percent of people currently receiving long term care services are ages 18 to 64.*

The Genworth 2011 Cost of Care Survey can help families evaluate options to address the increasing cost of long term care. For the eighth year, Genworth has surveyed the cost of long term care across the U.S. to help Americans appropriately plan for the potential cost of this type of care in their preferred location and setting. The most comprehensive study of its kind, Genworth’s 2011 Cost of Care Survey, conducted by CareScout®, covers nearly 15,500 long term care providers in 437 regions nationwide.

+ Full Report

2011 Special Report: U.S. Property/Casualty & Life/Health – Trend Review. Best’s Impairment Rate and Rating Transition Study – 1977 to 2010

June 3, 2011 Comments off

2011 Special Report: U.S. Property/Casualty & Life/Health – Trend Review. Best’s Impairment Rate and Rating Transition Study – 1977 to 2010 (PDF)
Source: A.M. Best

Eight companies were added to the list of impaired insurers and are included in this updated study of impairment rates and rating transitions. The eight impairments (one life/health and seven property/casualty companies) represent a reversal from the prior year of increased impairment activity.

2011 Best’s Briefing: Global Insurance – London Market Well Placed to Bear Pressure on Performance

June 3, 2011 Comments off

2011 Best’s Briefing: Global Insurance – London Market Well Placed to Bear Pressure on Performance (PDF)
Source: A.M. Best

This year is set to be tough for insurers and reinsurers competing in the London market. Natural catastrophe losses have already had a material impact on earnings, with many in the market facing a pretax deficit for the first quarter of 2011 and lower shareholders’ funds than at year-end 2010.

2011 Best’s Briefing: Global Insurance Reinsurers Anticipate Higher Rates in Wake of Tohoku

June 1, 2011 Comments off

2011 Best’s Briefing: Global Insurance Reinsurers Anticipate Higher Rates in Wake of Tohoku (PDF)
Source: A.M. Best

A.M. Best is maintaining its stable rating outlook for the global non-life reinsurance industry as companies see growing pressure in the market to support raised rates. Further analysis of the sector following the Tohoku, Japan earthquake and tsunami shows reinsurers have begun to increase rates and are hopeful for a firmer market.

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