The European insurance industry is in a state of flux, according to a new study from the European Insurance and Occupational Pensions Authority (EIOPA). The organizations recently conducted a stress test of nearly 130 as yet unidentified insurers. The test showed that the insurance market is quite robust, which means that most insurers are able to procure new clients and produce significant revenue. However, the thirteen unnamed insurance companies failed the test. Based upon its findings, the EIOPA estimates that these insurers would not be able to handle the impact…
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Reinsurance industry’s future is stormy, may be at risk in the event of a major natural disaster
The global reinsurance industry is under enormous pressure to quickly recover from the calamitous events that happened all over the world earlier in the year. Natural catastrophes have taken a massive toll on insurance companies worldwide, and as these companies hemorrhage money, so too do reinsurers as they pour funds into these companies to keep them afloat. While the severity of disasters occurring earlier in the year has not been overtly cataclysmic, the frequency in which they occurred has put strain on a somewhat unstable global economy. Now, insurance and…
Read MoreTaking a look at the reinsurance market pulse as we head into hurricane season
We are now on the cusp of hurricane season. Storm predictions have called for “above average” activity this year; just as we roll out of record setting tornado activity over the last two months. The cushion of excess capacity is gone or nearly gone for most insurers and reinsurers. One more natural disaster could be the tipping point that leads to the turn in the (insurance) pricing cycle. We know capacity is just a part of the many aspects to take into account when evaluating the reinsurance sector. However, the…
Read MoreReinsurance company reports market strength despite major disasters
Willis Re, the reinsurance division of Willis Group Holdings (NYSE: WSH), has released their stimulating report “Shaken and Stirring”. Stirring is an understatement. The report shows that with the devastation in Japan, New Zealand, Chile and the Australian floods is still not enough to bring a hard market into play. The report finds that there has been rate increases on Natural Catastrophe Excess of Loss of between 5 and 50 %, but the recent massive earthquakes in Japan and New Zealand’s South Island are not significant to push market-wide pricing up.…
Read MoreFERMA petitions Brazil to rethink new insurance regulations
The Federation of European Risk Management Associations (FERMA) is calling upon the Brazilian government to make changes to new insurance regulations, claiming that they will threaten the ability of insurers to provide coverage for large commercial industries as well as drive up the cost of coverage. The regulations are scheduled to take effect by the end of the month, which has incited FERMA to take such an unusual step in appealing the government on behalf of its members. The regulations to be enforced in Brazil include provisions that would prohibit…
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