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Hi Friends! We are back again with ‘3 Things We Learned,’ our weekly post using the headlines from the insurance world to tell the story of what happened this week, tying everything together into major ongoing themes. We are deep into Q1 2024 earnings reporting, with many insurers issuing quarterly results. In addition, cyber continues to be an area for innovation and investment, and partnerships and launches continue to target niche risks like property and embedded distribution. Let’s dive in and explore together. |
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Chubb, Brokers, Others with Strong, Steady ResultsChubb’s CEO Evan Greenberg highlighted the strength in both P&C and life insurance sectors, with substantial rate increases outpacing loss costs. Despite facing challenges like social inflation and sluggish financial lines, Chubb reported a rise in first-quarter net income to $2.14 billion and a notable increase in net premiums. The company is also exploring mergers and acquisitions cautiously, maintaining a solid capital position that allows flexibility in navigating future opportunities, and announcing the acquisition of Healthy Paw, a pet insurance provider. Major brokers reported this week, including Aon, which also closed its acquisition of NFP. They had a strong quarter with 5% organic growth driven by solid retention and new business. WTW CEO Carl Hess emphasized stabilizing the company’s talent base amid ongoing cost-cutting measures. Brown & Brown reported a significant increase in their first-quarter profit, with net income rising to $293 million, up $57 million from the previous year. J. Powell Brown, the CEO, expressed satisfaction with the company’s strong start to the year. Truist Insurance Holdings reports falling profit while they await the close of their sale to Stone Point Capital. An example of another bank-owned insurance agency operation is being divested by Trustmark National Bank, selling Fisher Brown Bottrell Insurance, Inc. to Marsh & McLennan Agency LLC. Other insurers, such as Hartford, were solid and steady, and they continue to be powered by commercial lines profitability and investment gains. W.R. Berkley showcases premium solid growth and an 88.8% combined ratio but warns that E&S momentum may be slowing. Cincinnati Financial doubled its net income and is preparing for a CEO succession that will take place next month. RLI saw overall underwriting income drive significant margins and increased stock book value. |
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Cowbell Launches AI-Driven Underwriting, Hiscox and Ariel Re Unveil ConsortiumCyber continues to invite innovation and investment; this week features two noteworthy events. These dual innovations reflect a shift towards integrating advanced technologies and comprehensive global partnerships to manage and mitigate cyber risks. Cowbell unveiled Prime Tech with Cowbell Co-Pilot. This innovative AI tool transforms underwriting by integrating cyber risk insurance with Technology Errors and Omissions (E&O) coverage, designed to streamline workflow efficiencies and decision-making significantly. Developed alongside Obsidian Insurance Company, this solution offers robust coverage for businesses up to $250 million in revenue in the U.S., improving contract review times by 40% and merging critical insurance coverages to reduce overlaps and simplify claims. Hiscox Re & ILS and Ariel Re have launched CyberShock, a new cyber catastrophe consortium aiming to solidify coverage certainty within the cyber insurance sphere. With a substantial capacity of up to $50 million per program, CyberShock delivers specialized, event-based coverage for various cyber threats, including supply chain disruptions and major cyber events. This initiative marks a unique collaboration that leverages the reinsurance expertise of Ariel Re and Hiscox’s cyber risk experience, addressing industry-wide challenges such as vague event definitions and limited capacity. |
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Embedded & Property Innovations by Great American, ICEYE/Juniper Re & VantageThe insurance industry continues along with strategic collaborations to enhance service offerings and operational efficiencies. Great American Insurance Group has formed a new team focused on broadening its embedded insurance offerings, addressing the surge in market demand, and optimizing distribution strategies. This initiative emphasizes developing innovative products like ticket and travel coverages, reflecting a shift toward integrating insurance seamlessly at points of sale and tailored to modern consumer purchasing behaviors. Simultaneously, ICEYE, renowned for its satellite-powered disaster management technology, has entered into a multi-year partnership with Juniper Re, LLC. This collaboration leverages ICEYE’s advanced capabilities to provide Juniper Re’s clients with near real-time flood and wildfire data, profoundly transforming response strategies to natural disasters. Through ICEYE’s satellites, this partnership aims to expedite the decision-making process and enhance the accuracy of loss management, enabling swift mitigation actions in critical times. Vantage Group Holdings Ltd. has expanded into the U.S. large property insurance market, introducing up to $10 million in primary and excess coverage limits. With an experienced and seasoned leadership team, this move capitalizes on Vantage’s robust market knowledge and experience and aims to cater to a segment demanding substantial insurance capacities. |
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Join us as we continue to explore the headlines and news shaping the insurance sector, and stay tuned for more insights on the unfolding narrative of our industry! Stay productive, stay safe and stay in touch! |