week commencing 16/02/20:

This week at Luther Towers we took cover under our desks, as storms (metaphorical and real) raged, with flooding and controversial criticism of the industry from its regulator, the FCA.  We’re not coming out until the sun does.

WTW consciously uncoupling from Miller

Just four years after acquiring Miller, Willis Towers Watson has announced its intention to separate and has hired Goldman Sachs to facilitate the process. External-link. [Insurance Insider]

Floods and storms bring costs and controversy

Consecutive storms have brought a raft of issues to the surface for insurers. Modelling firm AIR Worldwide has set the possible pan-European losses from Storm Ciara as high as €1.9bn. External-link. [Law360] There is concern that Storms Dennis and Ciara could together bring a larger volume of claims than the 2018 ‘Beast from the East’. External-link. [Insurance Post] Meanwhile, controversy has surrounded the flooding caused by Storm Dennis. The UK government has both denied that it was unprepared, but also warned that not all properties can be protected from the effects of climate change. External-link. [Financial Times] In response, a blog suggested that change is needed, and insurers must now start to share flood data with companies in their supply chains. External-link. [Insurance Post]

Market rejects FCA censure

The FCA report on the insurance sector published this week contained some harsh words.  It was firmly rebutted by market bodies who felt the regulator was out of touch with recent market developments. External-link. [Insurance Insider]

Swiss Re results show weaker combined ratio

For the full year 2019, the reinsurer increased its P&C net income by $396 million for the year, up from the $370 million for the year prior. However, its combined ratio remained an unprofitable 107.8%. External-link. [Reinsurance News]

Horton flags significance of Lloyd’s lead/follow reforms

Beazley CEO Andrew Horton has suggested that a significant improvement in efficiency at Lloyd’s will come from the splitting of leading and following positions proposed in Blueprint One. He noted that although reforms might be challenging, the idea could bring ‘fundamental change’ to the market. External-link. [Insurance Insider]

Lloyd’s looks at creating platform for captives

Lloyd’s has set up a working group to explore the possibility of hosting a platform for captives, chaired by John Keen.  The idea, previously explored in the 1990s, was originally shelved because Lloyd’s higher regulatory costs could not compete with lighter touch offshore domiciles such as Guernsey and Bermuda. External-link. [CRE]

Boy Scouts of America files for bankruptcy amid wave of claims

America’s oldest community organisation, the Boy Scouts of America, has filed for bankruptcy this week to pave the  way for a fund to pay claims from over 12,000 potential victims. External-link. [The Insurer]

Staddon to retire as Managing Director of MGAA

The Managing General Agents’ Association has announced that Peter Staddon is to retire on July 1st, after seven years in the role.  The search for a new Managing Director is currently underway. External-link. [Insurance Day]

Richard Milner joins Aspen International

Aspen has announced the appointment of Richard Milner as Senior Managing Director for Aspen International.  Milner was most recently CEO of Vibe Re. External-link. [Reactions]

Fashion mavens may mourn the death of the trend

The FT’s Culture Call podcast looked this week at the out-takes from London Fashion Week.  Alarmingly, the latest trend may be the end of the trend as a ‘thing’.  What will commentators do with their time? External-link. [Financial Times]

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