Reinsurance Archives - Event Decor Supply

Posted on 2 August 2022 by admin

Climate change events increasing claims paid in Australia – Reinsurance News

Climate change-induced natural catastrophe events have resulted in an increase in claims paid by Australian property insurers and consequently pushed their loss ratio up from 66.1% in 2019 to 84.6% in 2021, according to a new report from GlobalData.

australia-flag-map The loss ratio is expected to remain above the 80% levels over the next five years, impacting the profit margins of the insurers.

The report, ‘Australia General Insurance: Key Trends and Opportunities to 2026’, estimates the paid claims of Australia’s property insurance segment to increase at a compound annual growth rate of 4.0% from AUD6.0 billion ($4.5 billion) in 2021 to AUD7.3 billion ($5.5 billion) in 2026.

Ashish Raj, Insurance Analyst at GlobalData, said: “Due to various geographical reasons, Australia is prone to natural catastrophes, and the frequency of such events has increased recently. In the last two years, the country has suffered wildfires, floods, cyclones, and earthquakes which have resulted in a significant increase in property insurance claims.”

“High Nat-Cat led losses along with the slowdown due to the COVID-19 pandemic has compelled property insurers to increase premium significantly in the last couple of years. In fact, some buyers have been billed a renewal price increase of more than 300%.”

The floods that occurred in February 2022 heavily impacted New South Wales and Southeast Queensland, resulting in 118,000 property damage claims amounting to AUD1.8 billion ($1.3 billion), as of 10 March 2022. The floods in the two states in March 2021 led to 107,844 claims of worth AUD1 billion ($748.7million).

The premium rate is expected to rise further over the next few years which can make property insurance more expensive for many policyholders.

The expected increase is likely to have a negative impact on the property insurance segment, leading to underinsurance and even non-renewal of policies in the long-run. According to the Climate Council of Australia, 4% of properties will become uninsurable by 2030.

Posted on 29 June 2022 by admin

New tech helping to “predict” adverse events in real-time: AXA – Reinsurance News

A move towards prevention through predictive technologies will become commonplace in certain insurance sectors, according to the chief strategy and business development officer at the global insurer, AXA.

The two main trends that are making insurers shift to prevention, noted Georges Desvaux, are the growing complexity of risks society faces, and the ever-increasing availability of data and artificial intelligence tools.

In recent years, Desvaux added, more of their clients are talking about the importance of prevention, and their expectation for their insurer to be able to help them mitigate risks in their business, no matter the industry.

AI, data and a digital insurance ecosistem could have many potential benefits and applications, from automobile accidents to the reduction of crop loss through efficient resource allocation.

But the most powerful application of a digital insurance ecosystem according to Desvaux, is against technology risks.

He commented: “Many new risks emerge, as the industry evolves, such as increased severity of nat cat on physical assets, or cyber security on the ever-increasing digital part of the economy.

“To protect these, we need risk transfer but more importantly prevention to reduce the risks and severity of claims, thus fulfilling our role as partners.”

There is also an opportunity for AI and similar technology to help identify vulnerabilities in global supply chains or similar complex systems and mitigate issues like the global supply chain interruption caused by the pandemic, added Desvaux.

Scott Gunter, CEO at AXA XL added: “We have access to an enormous amount of data and new technologies, such as satellites, drones, and sensors, to evaluate and even “predict” adverse events in real-time.

“These tools allow us to be there for our clients, many of which are among the largest companies in the world, in ways we could have never previously imagined.”

AXA has recently launched a Digital Commercial Platform (DCP), which combines real time data and analytics collected through satellites, drones and sensors, with AXA’s expertise in risk prevention services and the Group’s underwriting and claims capabilities.

Platforms like the DCP, according to Gunter, can mitigate risk while contributing to solving societal challenges.

Desvaux said: “The aim is to move beyond “simple” risk management and prevention toward societal benefits, whether that is to anticipate the locations of wildfires or floods, to help build communities that are more strategically resilient to climate change, or to provide real-time, targeted services in emerging or precarious markets to bolster their financial stability.

“For us, this is what it means to act for human progress by protecting what matters: using the data and tools at our disposal productively to maximise benefits for all.”

Posted on 28 May 2022 by admin

Live Events Reinsurance Scheme supports over £400 million of investment and paves way for busy summer events season

Almost 15,000 jobs and more than 150 events supported by the scheme, including Wimbledon, The BRIT Awards and Virgin Radio’s Big Thank You Tour
UK live events sector is worth more than £70 billion annually to the economy and is bouncing back from the pandemic with a vibrant summer programme of events

Nearly three million people are expected to have attended events supported by the Government’s Live Events Reinsurance Scheme by the end of the summer.

The scheme, which closes in September, has paved the way for a busy summer events season, giving event organisers the confidence to invest in future events – safe in the knowledge they can insure against the most severe coronavirus-related risk, providing job security and boosting the economy.

The Government acted as a reinsurer and guaranteed to make sure insurers offered products to event companies. Prominent insurers in the Lloyd’s Market including Munich Re, Beazley, Arch, Dale Underwriting Partners, Hiscox and Ark are carriers of the scheme.

The scheme has already provided well over £100 million worth of cover – supporting more than £400 million of investment and protecting almost 15,000 jobs, keeping the economy moving and driving growth across the country.

Events supported across the UK include national set-piece events such as Wimbledon, The BRIT Awards, Birmingham’s Spring Fair and the London Art Fair. It has also supported important community events such as the Shaftesbury Book Fair, the Cardiff Half Marathon and the Gloucester Quays Christmas Outdoor Ice Rink.

Chancellor of the Exchequer, Rishi Sunak said:

The UK is a rich cultural hub and puts on some of the best arts, sporting and music events across the globe.

Our Live Events Reinsurance Scheme backed these events, enabling them to take place in the midst of uncertainty caused by the pandemic – helping to support nearly 15,000 jobs and over £400m of investment.

Arts Minister Lord Parkinson of Whitley Bay said:

This summer the public can look forward to a packed schedule of live events in sport, culture and business thanks to Government support for the live events sector and the incredible resilience and ingenuity of the people who work in it.

While it is right that the Live Events Reinsurance Scheme is being wound down as we bounce back from the pandemic, I am proud of the role it played in getting the live events sector back on its feet.

Virgin Radio UK content director, Mike Cass said:

The Virgin Radio UK Big Thank You Tour was one big rock star thank you to our key workers for everything they have done for us all during the pandemic.

The Live Events Reinsurance Scheme meant we could reschedule the tour for when it was safe to go ahead and ensure our key worker heroes were properly thanked by the best names in the business with three evenings of great music.

Patrick Davison, underwriting director, Lloyd’s Market Association, said:

Event cancellation due to covid was an uninsurable risk everywhere in the world. No one would touch it. But in co-operation with the LMA and Her Majesty’s Government – without whose support the scheme could not have been possible – specialist underwriters at Lloyd’s were prepared to innovate in support of the UK events industry, to get the country back on an even keel. I am proud of their willingness to risk their own capital to build confidence in the events sector and help restore the economy.

There are strong signs the vital events sector is bouncing back, with a full programme of concerts, music festivals, sporting competitions and other events throughout the summer. This is thanks to a number of successful Government policies such as the Events Research Programme and world-leading levels of support committed through the £1.57 billion Culture Recovery Fund.

The Live Events Reinsurance Scheme has supported events across the country and in all four nations of the UK. In the West Midlands, events totalling £13 million in spend have been covered, including the National Running Show and MACH 2022 at Birmingham’s National Exhibition Centre. More than £3 million has been spent towards events in the North West, including Virgin Radio’s Big Thank You Tour and the Federation of Small Businesses Awards.

As the risk posed to events by Covid-19 has been significantly reduced thanks to the success of the Government’s vaccination programme, the reinsurance scheme is scheduled to end as planned on 30 September in line with the Government’s Living with Covid plan.

Ends

Notes to editors:

Testimonials:

Sally Bolton, Chief Executive, All England Tennis Club, said:

The AELTC welcomes the support of the Live Events Reinsurance Scheme in relation to The Championships 2022.

Mike Seaman, CEO Raccoon Events, Organiser of the National Running Show, said:

The pandemic was a difficult time for us as exhibition organisers. The reinsurance scheme gave us the confidence to delay any decision about postponing our event until the situation had improved markedly. We are a small business and could not have done this without the backing of the government and the net result was that we brought 20,000 people together, promoting exercise, improving mental health and stimulating trade, all as a result of the reinsurance scheme.