Insurers challenged to “Keep Up” with consumer demands, technology and competition In a world moving quickly, property casualty insurers need to keep their products up-to-date in a timely way, while taking advantage of new technologies used to deliver them. According to Mark Brannon, a Principal at Merlinos & Associates, keeping up with the competition and other changes in the marketplace is a challenge. Many carriers are partnering with companies with advanced … Read More
Grow by Solving Society’s Problems…A.M. Best exec. Attracting talent remains biggest challenge for insurers. According to Matt Masher, EVP and COO at A.M. Best, the need for talent is greatest in the information technology (IT) area. The industry has done a lot to attract underwriting and claims professionals. But attracting the industry struggles in attracting IT talent needed to deal with insurtech issues, efficiencies in distribution and … Read More
“Talent and Data” present biggest challenges & opportunities to insurers – Crawford COO Rohit Verma, Global COO of Crawford & Company, believes data will continue to be a big asset to insurers, and the companies that can mine data effectively will see the biggest benefit. While advanced technology is necessary to leverage data, companies need to develop the mindset to incorporate insights in day-to-day work. Mr. Verma also sees “lack of talent” as … Read More
Tax-deferred Master Limited Partnerships offer value to insurance investors in difficult environment. Master Limited Partnerships (MLPs) offer good value to institutional investors in today’s environment. According to Marcus McGregor, Head of Master Limited Partnership Strategy at Conning, MLPs compare favorably to other asset classes, such as investment-grade corporates, utilities and REITs, from a valuation perspective. Mr. McGregor points out that MLPs “screen as cheap” relative to other asset classes in the 3-year … Read More
Why do insurers need an Economic Scenario Generator? According to Sherry Manetta, Head of Global Operations, Risk Solutions at Conning, insurance companies need a good economic scenario generator (ESG) to evaluate risks in external markets as well as internal business risks. While it aids in management decision making, it is also required by regulators and rating agencies to support risk management and solvency capital calculations. Ms. Manetta says … Read More
Institutional investors in Asia Pacific are working with a smaller ‘toolbox’ in developing jurisdictions. Bo Kratz, CEO of Conning in Asia Pacific, discusses common threads and differences between institutional investors in Asia Pacific versus the rest of the world. According to Mr. Kratz , institutional investors in Asia Pacific face many of the same challenges experienced by others around the world: low yields, high correlations and changing regulatory frameworks. He also notes that there … Read More
Faced with low yields, insurers’ investment strategies may look riskier, but remain diverse and acceptable. Investment strategies for insurers over the past few years have been driven by market actions and insurer reactions. According to Dan Mainolfi, a Managing Director and Portfolio Manager at Conning, insurers have added complexity to their investment strategies, including more equities, and reduced expectations going forward. On a standalone basis, Mr. Mainolfi says insurers need to reconsider adding some risk … Read More
Erie CEO looks to extend “hi-touch” model to online millennials by diversifying agency force. Soft market conditions, low interest rates and regulatory oversight were among the issues Tim NeCastro, President and CEO-designate of Erie Indemnity, discussed at the 2016 PCI Meeting in Dallas. He expresses concern about the “strident tone” from Federal regulators and the broad brush targeting the banking and financial services industry unfairly including the insurance industry. Mr. NeCastro says the Erie’s … Read More
Insurers face investment challenges from low interest rates and economic “unknowns” – Conning CEO Institutional investors in the insurance industry face challenges from record low or negative interest rates, slow and slowing economic growth, and a wave of increasing regulation. According to Conning Chairman and CEO Woody Bradford, these are the same challenges faced by other institutional investors around the world. These factors are forcing investors to take more risk in their portfolios, and to … Read More
New Norms & Game Changers require insurers to build bridges to future – SMA’s Furtado Karen Furtado, a Partner at Strategy Meets Action, discusses “New Norms” and “Game Changers,” and how insurers can take advantage of emerging technologies. The “New Norms” happening in insurance are all around the tide of change. Ms. Furtado looks at how the pace of change is affecting insurers and the risks they cover, their internal operations, new technologies and tools. She … Read More
With capital market volatility, Liability-Driven Investment strategies allow pension plan sponsors to focus on core business According to Owais Rana, Head of Investment Solutions – Pensions & LDI at Conning, Liability-Driven Investment (LDI) is an investment framework that links a pension plan’s investment strategy to its underlying obligations. Over the past few decades, corporate defined benefit pension clients have experienced changes in pension accounting treatment, funding regulations, mortality assumptions and continual increases in PBGC premiums. Furthermore, … Read More
Hermine losses could hit $500 million…but Florida CAT Fund and Citizens ok Hermine peaked as a Category 1 hurricane, the first to hit Florida since 2005. The storm system then crossed into the Atlantic Ocean leaving a path of destruction, power outages, severe flooding and two fatalities up and down the east coast. As the tropical storm lingered off the New England Coast, large waves continued to cause life-threatening surf and significant beach erosion. Early … Read More
Arch buys AIG mortgage insurance business to become world’s largest AIG has agreed to sell United Guaranty Corporation (UGC), its mortgage-guaranty unit, to Arch Capital for about $3.4 billion – $2.2 billion in cash – the rest in Arch Capital stock. In January, AIG said it would spin off the mortgage insurance unit to fend off activist shareholders Carl Icahn and John Paulson. AIG’s President and CEO Peter Hancock says … Read More
“Scary” that today’s underwriting results are “not what they appear on paper.” Steve Crim is a founding partner of C&S Specialty Underwriters, specializing in commercial casualty risks. He speaks with WRIN.tv about the causes and impact of prolonged soft market conditions on the insurance industry. Mr. Crim says the soft market, caused by excess capital in the insurance system is putting pressure on insurance rates, negatively impacting underwriting margins. He believes “most … Read More
RPS President to continue M&A strategy…says ACA drives up loss costs in workers comp/GL, and more… Risk Placement Services (RPS) President Joel Cavaness discusses the company’s acquisition strategy, the effects of El Niño and the Affordable Care Act on the insurance industry, cyber risk and more, during the recent NAPSLO Convention in San Diego. Mr. Cavaness acknowledge the effects of the changing weather patterns on heat, flooding and the types of storm activity the U.S. is … Read More
Lexington CEO sees next gen talent/energy of youth as keys to diversity of thought and innovation At the 2015 National Association of Professional Surplus Lines Offices (NAPSLO) Convention in San Diego, WRIN.tv asked Jeremy Johnson, President & CEO of Lexington Insurance, to comment on the insurance industry’s need to draw top next generation talent. He believes it is “critical”, not only to create a pipeline of professionals to bring up through an organization, but also to … Read More
Blue Marble Microinsurance leads industry consortium to develop risk protection in developing world Blue Marble Microinsurance (formerly Microinsurance Consortium and Venture Incubator) was established during the World Economic Forum in January 2015 to provide insurance and risk protection in developing countries. WRIN.tv spoke with Blue Marble CEO Joan Lamm-Tennant during the IIS Global Insurance Forum at the United Nations, about microinsurance, the problems it can address, and where Blue Marble will focus in … Read More
KPMG Head of Insurance believes public-private partnerships can help close huge protection gap The importance of Public-Private Partnerships (PPP) was a key theme at the Global Insurance Forum. Here, Gary Reader, Global Head of Insurance at KPMG, discusses developments in PPPs, and the importance of collaboration between industry and governments. According to Mr. Reader, there are many issues facing governments today, including climate change, resiliency of infrastructure, and economic stability. Given the … Read More
Insurance industry needs talent that can interpret Big Data to price/underwrite risk Shaun Crawford, Global Insurance Sector Leader at Ernst & Young, speaks with WRIN.tv during the 2015 Global Insurance Forum, about the need for the insurance industry to recruit talent. According to Mr. Crawford, acquiring and retaining “talent” is a significant issue for the insurance industry. With much of the core tasks in the industry now handled by machines, insurers are … Read More
Arch Capital Chairman reviews regulation, new capital, growth and more. WRIN.tv spoke with Arch Capital Chairman, President & CEO Dinos Iordanou during the recent IIS Global Insurance Forum, about trends in capital strategies…and the impact of regulation. Highlights of his discussion include: Even with positive steps, insurance regulatory burdens are escalating instead of de-escalating Influx of new capital lowers insurance prices for consumers but hurts insurer margins Arch seeking growth … Read More