Research and Trends News

Catastrophe Bond Issuance Down But Returns Up: Aon

Catastrophe-bond issuance slipped to its lowest level since 2011 over the past year as the securities outperformed the S&P 500 Index, according to insurance broker Aon Plc. About $5.2 billion in cat bonds was issued in the 12 months ending …

Current State of P/C Insurance Agency Mergers and Valuations

The number of insurance agency mergers and acquisitions in the first half of 2016 ranked as second-most-active six-month period since 2008. According to a new report on agency merger acivity by Chicago-based investment banking and consulting firm OPTIS Partners, which …

Europe’s Top Cedents Saw Cessions Jump by Double Digits in 2015: A.M. Best

Europe’s top cedents reported a double-digit hike in cessions for 2015 compared to the previous year. The trend stems from their taking advantage of cheap and bountiful reinsurance capacity, A.M. Best said in a new report. The continent’s 20 largest …

How Employer Cash Flow Impacts Workplace Safety

More than 3.5 million workplace injuries and illnesses occur each year in the United States, costing an estimated $250 billion annually. A new study from The University of Texas at Dallas examined how financing constraints impact workplace safety and the …

Progressive, Generali Pursue Joint Telematics Research

Europe’s The Generali Group and Progressive Group of Insurance Companies of the U.S., both among the leaders in car insurance telematics, said they have entered into an research and development collaboration to improve their individual data analytics capabilities and foster …

Ratings Agencies Expect Reinsurance Premiums to Continue Dropping in 2017

Reinsurance premiums are likely to continue to fall next year, ratings agencies said on Tuesday, following years of weaker prices due to competition in the sector and a lack of natural catastrophe losses. Reinsurers act as a financial backstop for …

Negative Reinsurance Sector Outlook Not Changing Anytime Soon: A.M. Best

A.M. Best said its outlook for the reinsurance sector remains negative due to a multitude of factors, and it will likely stay that way for quite some time. “Our rating outlook remains longer-term than our typical 12-18 months,” A.M. Best …

What They’re Saying About Non-Manufacturing Economic Activity

Economic activity in the U.S. non-manufacturing sector grew in August for the 79th consecutive month, according to the nation’s purchasing and supply executives in the Non-Manufacturing Institute for Supply Management’s latest monthly  “Report On Business.” The non-manufacturing index (NMI) registered …

Reinsurers’ Profits in Danger of Falling Below Their Cost of Capital: S&P

Reinsurers’ profits will soon drop below their cost of capital* and could remain there until the underwriting and/or investment cycles turn, according to Standard & Poor’s in a new report. S&P attributed this pressure on profitability to a combination of …

Cat Bonds Match Traditional Reinsurers on Reliability Scale: S&P

Some traditional reinsurers have asserted that catastrophe bonds are unreliable in terms of paying claims after major events. A new Standard & Poor’s article rebukes that idea. “We have explored the claims payment history of cat bonds,” S&P said. “The …