AIG’s Post

This week, the American Property Casualty Insurance Association (APCIA) hosted its annual meeting in Boston, where the topics focused on several catalysts that have led to the hard market. While the warning signals began flashing after last year's reinsurance renewals, the impact of the hard market on the economy at large and on consumers has been mostly realized during the second half of 2023. Now, the question on everyone's mind is: What is the outlook for 2024 and beyond? Read the full article below! https://hubs.la/Q028FYXv0

Reinsurance is an essential tool insurance companies use to manage risks and the amount of capital they must hold to support those risks. Berkley is a specialty Property & Casualty reinsurer that supports a wide range of U.S. and international insurance companies with personal and commercial business solutions. This allows other insurance companies to reduce their liability by transferring a portion of the risk to Berkley through treaty and facultative placements. Berkley can do more than just provide reinsurance capacity to our customers on a proportional or excess of loss basis—we can also assist our customers who enter into new classes of businesses or help develop products that are new to the market. Nine Berkley Businesses offer reinsurance on a variety of products. Head to the comments to hear from some of these Berkley Businesses ⬇️ and visit https://ow.ly/xI7V50ShUHn to learn more.

Spent sometime this earlier this week discussing property insurance market trends with our friends at Capstone Companies & Austin Smith. We are seeing the market trending in the right direction and it all starts with record capital drawn into reinsurance. More on that below or reach out for additional insights.

James River Insurance Company Announces Legacy #Reinsurance Agreement with State National Companies (SNC) Insurance Company. Under the terms of the agreement, State National will provide $160.0 million of adverse development reinsurance coverage for James River’s Excess and Surplus Lines segment casualty portfolio for accident years 2010-2023 (both years inclusive), subject to a 15% co-participation by the Company. The reinsurance structure has no coverage sublimits but does exclude exposure to the Company’s former large commercial auto insured, with the vast majority of that exposure already subject to a previously executed loss portfolio transfer. James River will retain claims management. State National is rated “A” (Excellent) by AM Best. Frank D'Orazio, the Company’s Chief Executive Officer, commented, “We are pleased to have successfully completed a significant legacy reinsurance transaction with a highly rated carrier that is consistent with the Company's track record of de-risking the organization while bolstering the balance sheet and providing improved certainty to our stakeholders.” https://lnkd.in/eXSq3nfp

As the ABI confirms property insurance payouts reached a record quarterly high, the part the loss adjuster plays in managing costs and the customer experience has never felt more important. It's why we put such a strong focus on technical excellence and professional growth at Woodgate and Clark, building one of the largest teams of professionally qualified loss adjusters in the market to support insurers, MGAs and brokers, today and tomorrow. https://buff.ly/3SSvMjX #lossadjusting #propertyinsurance #insuranceclaims

My favorite conference of the year is arriving 2 weeks early this year! Let the countdown begin for Aon's 2024 Property Symposium & Casualty Roundtable, the industry’s largest gathering of buyers, underwriters and brokers. A robust agenda with industry and market leaders exploring the challenges and opportunities facing the property insurance market today & tomorrow are on tap! #Aon #BetterDecisions #AonRiskSolutions

Video: The BI Interview with Mark Englert of Alera Group National Property and Casualty Practice Leader Mark Englert discusses commercial insurance pricing and how underwriters continue to adjust to a new risk matrix. https://ow.ly/UCBr30sz3wT

The collapse of the Francis Scott Key Bridge in Baltimore has led to staggering insured losses, with estimates from several sources falling between $2 billion and $4 billion, according to Morningstar. In fact, S&P Global analysts suggest it could be the largest marine insurance loss on record. While the insurance industry is likely positioned to absorb the losses without major issues, reinsurers will bear the bulk of the insured costs. Liability issues are complex, with potential litigation among various parties involved. “It is likely that the insurance and reinsurance companies will be jockeying over ultimate responsibility for the losses," Anderson Kill's Joshua Gold, leader of the firm's marine insurance practice, told the Insurance Journal. "Given the early reports of engine/power issues when the crew signaled mayday, the charterer may allege the fault lies with the vessel and its owners. Conversely, the owner may try to lay the fault with the pilot/captain/crew." The International Group of Protection and Indemnity Clubs will play a significant role in covering maritime liability risks, but the total cost is expected to surpass the coverage provided by reinsurance. There's also discussion about the potential for limitation of liability lawsuits to cap exposure, as well as the role of federal and state insurance coverage and funds in the recovery process. Read more details from the Insurance Journal: https://lnkd.in/e8CQRvxm #insurance #bridge #collapse #marine #risk #reinsurance #riskmanagement #losses #liability #baltimore #francisscottkey

Texas statistics from the state windpiol: Over the last two years, TWIA’s policies in‐force and direct liability have increased 27% and 57%, respectively. The growth is a result of insurer insolvencies and the challenged state of the private insurance market on the coast. By the end of next year, policies in-force are projected to reach nearly 265,000, with direct written premiums of more than $815 million.

Video: The BI Interview with Mark Englert of Alera Group National Property and Casualty Practice Leader Mark Englert discusses commercial insurance pricing and how underwriters continue to adjust to a new risk matrix. https://ow.ly/XWpU30sz3wU