Insurance news – week commencing 13/02/22

week commencing 13/02/22:

Fear may be driving cyber purchasing, but underwriters are calm about Ukrainian tensions. Meanwhile, New Zealand police seem to think James Blunt is an adequate replacement for crowd control.

M&A activity grows

A report from Clyde & Co found that in 2021 completed mergers and acquisitions worldwide increased year on year.  Firms showed particular interest in insurtechs and companies able to provide product innovation. External-link. [Actuarial Post]

Industry’s struggles continue

Many insurance firms are struggling for profitability found a report from McKinsey. Fewer than half of firms are earning their cost of capital because of competition from insurtechs and ineffective productivity improvements. External-link. [Reinsurance News]

WTW considers QIS imprudent and executives ill-prepared

A report prepared by WTW and commissioned by the ABI found that the PRA’s Qualitative Impact Study (QIS) would increase the volatility of insurers’ funds as well as reducing their competitiveness. External-link. [Insurance Business] This week the firm also found that 77% of executives do not believe their companies are prepared for reputation and ESG risk. External-link. []

Bailey makes case for reform

In a speech to TheCityUK, Bank of England Governor Andrew Bailey argued that inherited EU regulations must be reformed with UK goals in mind. External-link. [Insurance Business]

Nothing to fear

Arch Capital will do well in cyber as “fear is driving the market now” CEO Marc Grandisson said. He argued that the corporate world has raised its game on cyber but the insurance industry has not taken notice. External-link. [Intelligent Insurer]

This is not a drill

As the world assesses the situation in Ukraine, political violence underwriters are considering their exposure. The London market appears not massively exposed with some carriers continuing to quote new Ukrainian business. External-link. [Insurance Insider]

McGill in denial

McGill and Partners denied rumours that it asked for investment from senior members of staff earlier this year. The start-up said that it expects to become cash-flow positive before the end of the year. External-link. [Insurance Insider]

A new market is born

Gaia, a start-up which aims to make IVF treatment more affordable, has launched an insurance product which will allow clients to pay a fraction of the cost of treatment should it not be successful. External-link. [Evening Standard]

Hiscox cast Dye as CEO

Hiscox has announced Jon Dye as its new UK CEO. Hiscox group CEO Aki Hussain said Dye is an “industry leader”, who has a record of building “sustainable, profitable businesses”. External-link. [Reinsurance News]

Not so beautiful

New Zealand authorities deployed some unusual methods in their attempts to disperse crowds protesting against Covid vaccine mandates. When Barry Manilow tunes failed to change the mood they tried James Blunt – to little effect. External-link. [Sky News]

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