The general casualty business in the Asia Pacific region continues to develop in a highly competitive environment. The significant competition among local, regional and global players in the primary market led to insurance rate declines between 5 percent and 10 percent in 2011. The region is expected to remain competitive in 2012.
Posts Tagged ‘professional indemnity’
Continental European Legislative and Judicial Trends: Draft Bill on the Amendment of the Spanish Accounts Audit Act: Potential Impact on Professional Indemnity Policies
In the September 2009 issue in this series, Recent Legislative and Judicial Developments in Continental Europe Affecting the Casualty Insurance Industry, we referred briefly to the ongoing discussions around the controversial topic of auditors’ liability.
When problems in the subprime mortgage market erupted into a full financial catastrophe last year, conventional wisdom suggested that property and casualty (P&C) insurance companies would suffer. The culprit, many believed, would not be investments in mortgage-backed securities (MBS) like the life insurers. Rather, it would be the possibility of slipped bond ratings because of problems with bond insurers, ultimately lowering the value of the bonds held in P&C investment portfolios. The increase in insured losses as a direct result of subprime and the ensuing credit crunch would certainly drive P&C companies to have poor returns, the thinking continued. Even at the mid-point of 2008, talk of a turn in the market began to percolate.
Guy Carpenter Briefing Finds Rising Interest Rates Could Affect Reinsurers’ Claims-Paying Ability over Long Term, Industry Stable despite Lingering Effects of Financial Crisis
A briefing published today by Guy Carpenter & Company, LLC looks ahead to the possible effects of inflation on long-tail reinsurance, as well as the impact of the credit crunch on reinsurers in the wake of the subprime mortgage crisis. The briefing, Casualty Specialty Update, examines the twin pressures that inflation and the global credit crunch are exerting on the global casualty reinsurance industry.
Casualty treaty reinsurance pricing outside the United States and UK was unchanged in most areas, though there were pockets where prices rose - despite the shrinking of many cedents’ premium incomes. Programs in specific classes (such as Financial Institution) or with deteriorating reinsurance results sustained the highest price hikes. Cedents did have access to an increasingly diversified group of reinsurance markets, putting pressure on established traditional reinsurers. Many are beginning to turn over their reinsurance panels, and the London and European branches of Bermudian reinsurers are the primary beneficiaries - at the expense of the traditional European reinsurers.