week commencing 06/12/20:

As the nation watches the slowest ever episode of “Deal or no deal” grind towards its conclusion, we’ve distracted ourselves from the game-show tension by scanning the insurance news to bring you our top picks.

Insurance industry’s capital won’t last in another “black swan” event

The global non-life insurance industry’s US$2 trillion in capital won’t last if another “black swan” event cripples the global economy, such as a cyber attack or another pandemic. Lawmakers are searching for ways to be better prepared for the next calamity. External-link. [Bloomberg]

Reinsurance capital raises could reach $22bn this year

Improved reinsurance market pricing is attracting significant sums of capital, with Willis Re estimating that $19 billion has already been raised since the COVID-19 pandemic broke out and another $3 billion is underway. External-link. [Insurance Insider]

Cyber rates to rise in 2021

Cyber insurance rates in the London market are expected to increase next year by as much as 20% as insurers respond to rising loss costs. External-link. [Insurance Day]

The COVID-19 recession means social inflation is here to stay

The COVID-19 recession will aggravate trends such as inequality that underlie the growth of social inflation in US commercial liability claims, according to Swiss Re. External-link. [Insurance Day]

Global reinsurance outlook remains stable: AM Best

Rating agency AM Best has maintained a stable outlook on the global reinsurance industry for 2021, as positive pricing momentum and tighter terms and conditions continue to offset negative factors. External-link. [Insurance Journal]

Australian insurers’ profits halved with more challenges to come

Profits in the general insurance industry in Australia are down almost 50% to a near 10-year low, with a range of factors indicating testing conditions will endure through 2021, according to KPMG. External-link. [Insurance News]

Rugby faces group litigation action on concussion

More than 70 former rugby players are preparing a lawsuit against the sport’s governing bodies. The legal team helping them believes they have similar grounds to the successful NFL case in the US. External-link. [Daily Mail]

Howden kickstarts capital markets capability

HX, the data and analytics division of expansive Howden Group, has launched a new capital markets advisory unit. Howden Capital Markets will develop innovative products to service clients, markets and investors. External-link. [Artemis]

Turker Re launches Turkey quake ILW product

Lloyd’s broker Turker Re has launched what it says is a first-of-its-kind Turkey earthquake industry loss warranty product aimed at creating a new market for re/insurers and ILS managers. External-link. [Reinsurance News]

Has the Internet broken your brain?

Rather than millennials and gen-z, should we be worrying about the impact of the Internet on baby boomers instead? External-link. [The Week]

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