January 4, 2016 issue
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U.S. hopes to reach agreement with E.U. on equivalent standards for insurers, reinsurers
U.S. negotiators stand a reasonable chance of winning agreement with the European Union on so-called “covered agreements” that could lessen the burden on U.S. insurers and reinsurers doing business there, according to some observers. The U.S. Treasury Department and the Office of the U.S. Trade Representative informed Congress late last month that the United States […]
Global reinsurance rates continue to fall, but those in North America stabilizing
Reinsurance rates continued to fall at the Jan. 1 renewals, although in many cases the pace of those declines slowed compared with previous renewals. But while rate reductions for U.S. property catastrophe excess-of-loss programs have slowed, reinsurance rates in other areas have continued to fall more sharply, sources say. “We have seen rates fall at […]
Long-awaited Solvency II rules launch in E.U.
Most insurers across Europe will meet the long-awaited Solvency II risk-based capital requirements that come into force this month but it’s still unclear whether the rules will change their long-term strategies. Smaller and midsize insurers may be forced to merge to survive under the new regime or pull out of some lines of business, some […]
Solid cyber risk management depends on good defense metrics
Cyber security is vital for corporations and individuals alike, but its practice is hamstrung by a lack of effective data, loose monitoring and impediments to sharing the data that does exist. Sean Connors, vice president of cyber security at System Soft Technologies L.L.C., talks about the issues and offers strategies for overcoming them.
Q&A: Mark Sektnan, Association of California Insurance Companies
Mark Sektnan, president of the Sacramento-based Association of California Insurance Companies, says a workers compensation prescription formulary approved in October will be an important tool in preventing unnecessary dispensing of narcotic painkillers to injured workers in the state. In an interview with Business Insurance Associate Editor Sheena Harrison, he also discussed how California’s 2012 workers compensation reforms have played out and the significance of California lawsuits against on-demand economy companies. Edited excerpts follow.
With falling rates, market favors buyers
Employers are seeing flat or lower workers compensation policy pricing as insurers work to hang onto profitable accounts during the 2016 renewal season. Additionally, sources say insurers are offering incentives such as relaxed collateral terms and safety program assistance to keep existing customers and prevent them from shopping their accounts in a competitive comp market. […]
Health insurer megamergers not all wrapped up
The proposed merger of Aetna and Humana, as well as that of Anthem and Cigna, may have been given the green light from shareholders, but the deals are far from a sure thing.
High-deductible health plans surge in popularity
Move over PPOs and health maintenance organization plans more and more employers are adopting high-deductible health plans to hold down costs and avoid the much loathed Cadillac tax.
Little urgency expected in Congress
There looks to be a limited risk management-related agenda at the congressional level this year. That’s not because of the relative merits of issues such as reauthorization of the National Flood Insurance Program or dealing with international insurance regulatory initiatives. Rather, it’s the political reality of national elections and a short legislative calendar. “We have […]
Major event needed to disrupt pricing status quo
What would it take to turn the commercial property insurance market, which is now in its third year of rate cuts? Maybe more than just a single event, according to observers. “It’s going to take a major unexpected event or events to change the market,” said Joe Tinetti, Zurich North America’s New York-based head of […]
Property insurance pricing continues to soften
The current year-end property insurance renewal season looks a lot like last year’s, except even better for risk managers. Rates continue to decrease — sometimes by double digits — from an already low level. A paucity of major catastrophes, abundant capacity and cheap reinsurance have kept prices down. And some observers say rate reductions have […]
Pricing for liability cover is stable
The Jan. 1 liability renewals market appears to be just a bit softer than last year with policyholders generally happy with their treatment as insurers move to secure key renewals, according to sources. That is, things are little changed from a year ago. “At Dec. 31, 2014, the industry saw single-digit rate increases,” said David […]
Management shakeups, mergers create opportunity
Insurance industry consolidation and turmoil in the executive ranks of some insurers could result in an even softer directors and officers liability insurance market as displaced underwriters find new capital to back them, say observers. Ace Ltd.’s merger with Chubb Corp. and changes at American International Group Inc. and Zurich Insurance Group Ltd. could ultimately […]
Intense competition could further soften D&O market
With continued excess capacity in the directors and officers liability market, insurance buyers are still enjoying flat or lower renewals, a trend that is expected to continue next year. Some observers believe competition may well be exacerbated by merger and acquisition activity and other recent turmoil in the market, including the departure of several key […]
High court to take on religious nonprofit groups’ challenge to ACA contraceptive mandate
The health care reform law’s contraceptive mandate saga continues as the U.S. Supreme Court prepares to hear oral arguments on nonprofit religious organizations’ challenge to the provision.
Truckers hope safety upgrades reflect on premiums
Using electronic logging devices to record drivers’ time on the road also will allow the trucking industry to track fleet performance. Some industry members see this improving safety and savings, but others are not so sure.“We haven’t heard yet from insurers that they’ll change underwriting — and it’s too early to know — but from […]
OSHA flexes its regulatory muscle
Aggressive is the adjective most often used to describe the U.S. Occupational Safety and Health Administration these days, but that’s not necessarily a bad thing.
Cadillac tax delay buys time for IRS to retrench on divisive issue
The last major congressional action of 2015 —passage of a massive tax and government spending measure — could delay government regulators issuing the last major rule under the health care reform law. The spending measure includes a provision that delays the effective date of the Patient Protection and Affordable Care Act’s so-called Cadillac tax from […]
Business groups keep pressure on Cadillac tax
Congressional support to repeal the widely criticized Cadillac tax on costly health plans is growing, but the outcome of that drive is uncertain.