US asbestos losses could reach $100 billion
AM Best has raised its estimate for losses that US property/casualty insurers can ultimately expect from third-party liability asbestos claims by approximately 18 per cent to $100 billion. The $15 billion increase to the net ultimate asbestos loss estimate comes as insurers are incurring approximately $2.1 billion in new losses each year while paying out nearly $2.5 billion on existing claims. READ MORE
Rhode Island IBT set to drive US restructuring
Managers of US run-off business are focused on finality and ready to take up new tools for restructuring in order to achieve it, says the first survey of the US run-off market conducted by AIRROC and Ernst & Young (EY). A majority (73 per cent) expect it will take ten years or more for them to achieve finality but they are ready to consider new approaches, including the possibilities offered by the Rhode Island Insurance Business Transfer (IBT) legislation. Many respondents view that regulation as the most significant development impacting the US run-off market READ MORE
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IRLA announces awards winners
The Insurance & Reinsurance Legacy Association (IRLA
) held its Annual Members’ Dinner at the Gibson Hall in London last week. The evening included the presentation of IRLA's annual awards for Services to Legacy and IRLA Young Professional in Legacy.
Luke Tanzer of RiverStone Management (third from left in picture) was presented with the IRLA Services to Legacy Award 2016 by IRLA chairman, Paul Corver (far right of picture). Jenny Fair, deputy chairman of IRLA, presented Adam Horridge of Swiss Re (second from left) with the IRLA Young Professional in Legacy Award 2016.Directory link: IRLA
The case for expanding the Rhode Island IBTLuann Petrellis of Ernst & Young* says the Rhode Island Insurance Business Transfer should be opened to other lines of business besides P&C
Entire industries are being challenged like never before to open up, innovate and reinvent themselves. In a world where everything is changing, the biggest risk is standing still. This is as true for the insurance industry as it is for any other industry seeking to stay competitive in a growing global economy.
The global game of re/insurance is evolving at an accelerating pace. There are significant restructuring activities going on in the global and US market. In 2013, Fitch Ratings, when referring to accelerating READ MORE
PwC run-off survey
More restructuring in Europe
The high levels of activity seen in the European run-off market over the past 12 months show no signs of slowing; 77 per cent of respondents to PwC’s 10th annual Survey of Discontinued Insurance Business in Europe say they expect to engage in exit or restructuring activity by 2019.
Sales of legacy liabilities to specialist run-off acquirers and group restructurings through business transfers (UK Part VII transfers and European equivalents) will be the key tools deployed; 81 per cent of respondents predict that READ MORE
Fraudulent devices and collateral lies
Versloot Dredging BV & Anor v HDI Gerling Industrie Versicherung AG & Ors  UKSC 45 ('Versloot Dredging')
The Sun reported this Supreme Court decision as a 'shock judgment' under the headline 'Insurance premiums set to rocket after Judge rules it’s OK to LIE on your claims'. The Director of Insurance Policy at the Association of British Insurers commented that the decision 'flies in the face' of work by the industry and government to crack down on fraudsters.
Stephen Carter, partner with Carter Perry Bailey LLP, says it is an important and controversial judgment which reversed the law as it had developed, so that the use of 'fraudulent devices' in support of otherwise valid claims no longer falls under the fraudulent claims rule. READ MORE
IRLA Congress report 2016
The 2016 IRLA Congress got off to a good start with a look at the ‘year that was’ which provided a variety of observations from an industry-wide panel. Leslie Fenton of PwC in the US said she had seen a ‘healthy focus on core competence’ within US insurance companies which had led to an increase in carve out deals of parts of businesses. However, she said this had attracted a number of companies – particularly from Asia – with little or no knowledge in the market buying up business. She drew gasps from the audience when she said that READ MORE
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