week commencing 12/05/19:

The sunshine hasn’t stopped it being a busy and varied week at Luther Towers, although it took us a day or two to recover from the numbers exposed in Insurance Insider’s report on top CEO pay packages across the market.

Florida cat renewals pushed to the brink as deadline looms

The renewals’ season for Florida catastrophe is only two weeks from closure, but a concerted push on price rises from reinsurers has led to a Mexican standoff between counterparties, with the majority of deals likely to be done at the last minute. External-link. [Insurance Insider]

All change at Aspen as Apollo / Cloutier appoint new teams

Aspen has announced a sweeping set of management changes, including a new active underwriter and COO, following the appointment of Mark Cloutier as Group CEO. Changes also include putting the London MGA into run-off and the closure of the Dublin office. External-link. [Intelligent Insurer]

PRA warns insurers over customised capital modelling

The PRA used an ABI seminar this week to fire a warning shot over non-standard capital modelling by insurance firms.  It warned that the use of so called ‘internal’ models, could under-value the risks on an insurer’s books. External-link. [Financial Times]

80% of syndicates hit PPL e-trading targets

Just under half of in-scope risks now run through PPL or other electronic trading platforms at Lloyd’s, following a six-fold growth in adoption over the last year. LIIBA commented that increased adoption by brokers has helped to deliver this result. External-link. [Insurance Day]

Scor’s Kessler expects cyber to become world’s largest risk

CEO and Chairman of Scor, Denis Kessler proposed a ‘Richter Scale’ for cyber disasters at a Paris conference.  He commented “unless we can model, it’s very difficult for us to provide coverage”. External-link. [Insurance Business]

LMG report demonstrates the skills gap in the London market

The LMG this week published a report undertaken with KPMG into the future skills needed by the London market.  Authors reported that firms face a ‘tipping point’ in terms of lack of available talent. External-link. [Reuters]

Lloyd’s invests in commercial insurance start-up Layr

Lloyd’s announced this week that it will invest in a cloud-based commercial insurance business which uses AI to match supply and demand for liability insurance.  Atlanta-based Layr has successfully emerged from the Lloyd’s Innovation Lab. External-link. [Insurance Business]

Australia quantifies rising cost of climate change

Australia is likely to see $91bn annual costs from climate change-related disasters by 2050, posing a major risk to financial stability, reports the Climate Change Council of Australia. External-link. [Asia Insurance Review]

Compensation for top 50 insurance CEOs tops $450 million

Insurance Insider published a revealing report on executive pay in insurance. The report revealed that the highest paid insurer CEOs for 2018 included those of Chubb, AIG and Berkshire Hathaway; with Dan Glaser of Marsh and Greg Case of Aon leading the broking pack. External-link. [Insurance Insider]

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