Regulation

Newsom has yet to sign a pending bill to create a public cat model.

The measures also seek to encourage greater wildfire mitigation efforts.

The violations included not using propertly appointed adjusters and failing to pay claims.

The group claims the White House is undermining disaster preparedness.

The model becomes the second in the state to get approval to affect ratemaking applications.

Insurers must write policies in high-risk areas in order to incorporate the model.

The consultation period around UK ISPVs was opened in November last year.

The proposed reforms are designed to put the UK’s regulatory framework on par with Bermuda and the US.

Managers believed end-investors value diversification and non-correlation of cat bonds over liquidity.

The suit claims billions of dollars are being illegally withheld.

The PRA will also have to report on turnaround time for new approvals against 10-day and six-week targets.

State legislation has led to major strides in rate adequacy.

We discuss progress in collateral management with our Outstanding Contributor winner.

The recommended “AIF lite” structure could be suited to cat bond lites.

Initial responses to ESMA’s report welcomed the long timeframes for any changes.

The measure could have landed insurers with extra tax on US business.

The body said cat bonds are closer to an insurance product than a security.

The Peak Re subsidiary mainly writes US motor and casualty reinsurance.

Florida’s top regulator says he’s eyeing eventual tweaks to the state’s cat fund, too.

California homeowners are also expected to move admitted business to E&S.

The announcement spurred a quick spike in stock market valuations.

The agency said introduction of a new methodology will depend on the feedback it receives from the ILS market.

Commissioner Lara also proposed a $500mn cash infusion from parent State Farm.

“We do not have the luxury of time,” he said during the Bermuda Risk Summit.

There are signs that Florida’s insurance industry is coming under increasing legislative scrutiny.

RAA president Frank Nutter says he hasn’t been able to get an update on the project from the now Trump-led NOAA.

State Farm General has asked California regulators for an emergency rate increase.

The carrier has paid $1.75bn on around 9,500 claims filed from the wildfires.

The insurer disclosed the estimates as it seeks emergency rate hikes from regulators.

Citizens approved an average 8.6% rate hike and decreases for one-fifth of policyholders.

The state has seen 11 new entrants into the insurance market, reflecting renewed confidence.

The company says the recent wildfires will be the costliest in its history.

Standards and guidelines address institutional investors’ concerns over valuation risks.

Homeowners’ insurance rates have spiked almost 60% since 2018.

The bodies said that tapping into the cat bond markets was a possibility.

The regulations are part of a state effort to expand wildfire coverage.

The consultation period closes on 14 February 2025.

The UK Local Government Pension Scheme (LGPS) has around £391bn in AuM.

The cat bond application process will be streamlined to 10 working days.

The effort will draw from California’s research and higher education communities.

The ILS industry offered 11 points of merit that justify cat bonds being eligible for UCITS funds.

The regulations have been officially published online, with a hearing to be held next month.

The Citizens board approved the increase in June.

Changes made will make it easier to compare the funds, said Albourne’s Michael Hamer.

The standard is a ‘step forward’, but cross-company comparisons are difficult.

The groups highlighted technical hurdles to implementation at a Wednesday hearing.

CEO Wagstaff said the LMG must "compete with other markets".

FHCF rates are also projected to decrease by a statewide average of 7.38%.

The rise comes as competition has increased for ILS between jurisdictions.

Bermuda liquidators had earlier objected to out-of-court agreements between parties.

The body’s budget committee is again pressing Citizens over solvency concerns.

The agency stressed the physical impact of climate risk on companies.

The approval takes account of several out-of-court settlements.

All parties interested in the case have agreed to participate in the process.

Participating insurers would be required to provide all-perils property insurance for residential and commercial policyholders.

The ILS cedants will receive “substantially decreased” S&P capital relief following the criteria changes, Arch said.

The UK government has set out a re-energised international development agenda which has highlighted the potential for greater disaster risk financing.

The move reflects years of weak profitability caused by high cost inflation and cat losses.

The most important factors driving insured losses over the years include hurricanes, other weather-related events, inflation, and excess litigation.

The two associations will work together on six matters, including climate change, cyber risks and taxation.

If the assets of the cell form part of the Vesttoo estate, this may impact the priority of returning associated capital to cedants.

The Court has granted the stay based on a revised order agreed between Vesttoo and White Rock.

The Inside P&C Research Team has examined the impact on 2025 earnings for Bermudians of a proposed corporate tax rate of 15% for large multinational firms in Bermuda.

The APRA intends to review reinsurance settings in the Australian prudential framework over the course of 2023 and the first half of 2024.

The agency said it will take rating actions where warranted.

The obvious question is where is the capital behind the letters of credit that were being pledged on its transactions.

Some sources have called for more transparency on secondary trades, though others note the buy-and-hold nature of the market limits trading appetite.

The European Commission suggested that its review should include looking at the risks for retail investors of access to instruments including cat bonds and other niche alternatives.

The bills place additional requirements on insurers in the state and expand consumer protections.

At Trading Risk’s London ILS 2023 conference, the PRA’s head of division for London markets, Andrew Dyer, explained how the PRA is executing its plans to bolster the UK ILS market.

On Thursday, the bill passed 23-15 in Florida's Senate, after passing the House last week.

Yaworsky has served as interim insurance commissioner since being nominated by Governor Ron DeSantis last month.

The BMA also expects Bermudian insurers to consider double materiality in their reporting, as well as their own external climate-change impact.

The grant has so far supported cat bond issuances Kite Re and Greater Bay Re.

Ron DeSantis has also announced proposals to modernize Florida’s "bad faith" law, in the latest set of reforms he described as the most “comprehensive in decades”.

The attempt to increase the supply of insurance in the state has been submitted for governor approval.

Following recent hurricanes, more than 610,000 residential property claims were filed in the state.

The regulator examined carriers’ ability to model nat-cat and cyber events, with mixed results.

The downgrades were linked to a reduction in CEA’s claims-paying capacity to 1-in-360 years, from 1-in-400 years, and reinsurance market challenges.

The industry group has launched its first target-setting protocol.

KBRA believes First Protective’s and Frontline’s strong underwriting and claims handling compares favourably with that of their Florida peers.

Senate Bill 2A addresses key concerns in the Florida property market, including one-way attorney fees and assignment of benefits, the ratings agency said.

The legislature met for a special session this week, discussing key concerns in the state's property insurance market.

The regulator has implemented several changes, which it says will increase UK competitiveness and bolster participation in the UK’s ILS market.

Florida has been seeking legislative reform amid a breakdown of the functionality of its insurance market.

The bill under discussion tackles key concerns like eliminating one-way attorney fees and getting rid of the state’s controversial assignment of benefits right.

The state’s legislature has published its reform bill to be debated in the special session this week with wide-ranging reforms to tackle high litigation costs.

The upcoming special session, which will take place from December 12 to 16, will need to consider how to make Florida attractive to national insurers and reinsurers.

The special session comes as the Florida market braces itself for the effects of the anticipated reinsurance market hardening, potential regional insolvencies and the dearth of private capital.

The agency has also cut the carrier’s long-term issuer default rating to A-.

Several structural factors, including the pricing cycle, make insurers more insulated from US activist states. 

The committee will be chaired by Albourne Partners’ MD and Asia region head Debra Ng.

The ratings agency placed the carrier’s ratings on negative review earlier this year, prompting broker and cedant scrutiny.

The leadership contender is said to be privately critical of the FCA, which has been beset by strikes and delays.

Nicole Fried cited her department’s duty to act in consumers’ best interests.

With many local insurers essentially “zombie companies”, state legislators need to end one-way fees and assignment of benefits.

Joe Petrelli said Demotech would continue to follow its independent methodology, despite outside pressure.

No matter what the outcome, further market dislocation is on its way – but there are various band-aid options that could help Florida insurers limp through hurricane season.

Reinsurers secured concessions on terms and hiked rates as most insurers managed to patch together cover to enter hurricane season.

The contractors’ association argued the law would prevent contractors who hold AoBs from recovering their attorneys’ fees if they prevail in a lawsuit against an insurance company.

The proposed Florida special session Senate bills 2-D and 4-D have overwhelmingly passed the house floor and will now move to Florida Governor Ron DeSantis for signing.

State representatives will vote on the bill on the House floor tomorrow.

The Bank of England’s report warned of significant data gaps and said general insurers are at risk of climate-related litigation.

State senators will vote on the bill on the Senate floor tomorrow.

Industry association FAIR said a full reinsurance backstop should be provided.

The Financial Reporting Council has found evidence where audits of insurers’ financial statements have not been rigorous enough.

A key plank will be a Reinsurance to Assist Policyholders (RAP) program providing a $2bn reinsurance layer below the FHCF.

The special legislative session to be held the week of May 23 is the last chance Florida insurers and reinsurers have this year for some desperately needed reform to the stricken homeowners’ market.

Sources close to the industry are calling for litigation reform as a priority, while Florida Hurricane Catastrophe Fund expansion is also on the cards.

The bill that will be discussed in the special session is expected to be available for senator perusal later this week or early next week to allow ample time to read and discuss.

Replacement changes will be made by Q4 2022 after a warning from the DoJ.

Aeolus must return the held collateral to Credit Suisse.

ABIR is pushing back on behalf of the Bermuda cohort of companies, whose debt is significantly impacted.

The Bank of England pledged to smooth the process for certain types of short-tail ILS businesses to give faster response times

The regulatory body also underlined the need to manage risks and uncertainties relating to the war.

The state Governor’s goal is ‘to have a functioning market’ for property insurance in Florida.

The Florida governor said action was needed to prevent more carriers from failing.

The strength of the relationship between the government, the regulator and the industry is key to the island’s position.

The Senator is seeking to use a statute to activate a special session on property insurance.

The comments follow an extensive inquiry into the regulation of the London market.

The Global Regulatory Committee’s goal is to provide a balanced perspective for world regulators.

The SEC intends to make information around climate-related risks more transparent.

By failing to pass plans for new roof damage deductible, Citizens Property policy reductions, Florida lawmakers left property insurance reforms in limbo.

President Putin has signed off on a new law that has banned Russian carriers from ceding risks to reinsurers in "unfriendly states".

The Florida Senate passed Senate bill SB 1728 last Thursday, but it seems to have stalled in the state’s House of Representatives.

The Senate bill contains a highly debated provision that could cause homeowners to face a new deductible for roof-damage claims.

Talks between the regulator and practitioners are ongoing, with the market picking out several key threads that could assist local transactions.

The ruling deemed that the restaurant group was entitled to separate payouts for multiple premises.

City Minister John Glen has outlined new Solvency II measures to reduce bureaucracy and relax regulation in the insurance industry.

The SEC is consulting on a suite of new rules for private fund advisers.

Industry veteran argues that the culture of the UK regulator is stifling growth.

Absent more significant reform, any changes this year look set to simply shift the timing of burdens falling on the public purse.

State Senator Jeff Brandes withdrew his amendment to an insurance omnibus bill but said he would bring the concept back before the legislature.

Axa XL’s UK and Lloyd’s CEO said speed of decision-making was key to UK market growth.

The House of Lords Industry and Regulators Committee will explore whether regulatory policy is well-designed and proportionate for (re)insurers.

The regulator is also reviewing Solvency II post-Brexit.

The ratings agency said that long-tail classes could be hit by reserve deficiencies.

The Government aims to ensure that the UK’s ILS taxation regime remains competitive. 

The Markel Catco Reinsurance Fund and Markel Catco Reinsurance Opportunities Fund have already had provisional liquidators appointed for restructuring purposes.

HM Treasury is proposing to cut the tax burden on ILS transactions.

The status will allow the Stephen Catlin-led business to write US reinsurance without posting reinsurance collateral.

The watchdog had been due to announce a decision on a further inquiry by 29 November.

This week’s news that the UK plans to introduce a statutory requirement for regulators to consider growth and competition targets will be taken by local ILS market observers as a modest win.

The UK government, launching a consultation on the post-Brexit regulatory framework for financial services, has said it supports granting the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) statutory objectives to focus on growth and competitiveness.

Financial authorities must ‘massively expand’ risk-sharing pools.

The UK government’s policy paper provides for use of secondary legislation to make changes.

The ratings agency said the island would continue to provide a beneficial environment for carriers overall.

The carrier said its $110mn net claims burden will be unaffected.

Trade body Insurance Europe has warned the Prudential Regulation Authority (PRA) that the temporary regime enabling EU reinsurers to trade in the UK will close before they know which of the Solvency II reforms will be taken forward.

The Competition and Markets Authority will investigate whether the deal lessens competition in the UK.

Discussions with industry and in-country partners have so far foregrounded parametric solutions.

He becomes the first service company provider to hold the title.

The National Association of Professional Insurance Agents said members have not received adequate training for the new system.

It will now take just three business days for such insurers to become registered on The Island.

Huge disputes over aggregation of claims and ongoing coverage disputes point to uncertain overall exposures.

Environmental, social and governance (ESG) factors were the primary driver in 13% of ratings actions in the year to the end of March, according to AM Best.

The new adjustments will increase rates 7.6% on average after February 1, 2022.

A federal judge finds that a new law banning contractors from advertising that insurance may cover roof repairs unconstitutional.

The brokers have offered to divest Willis’ largest corporate risk and broking clients to Gallagher’s Crombie Lockwood.

The Commerce Commission has extended its review of the merger by another six weeks.

The CCCS has identified competition concerns around executive pay consulting services.

As new regulations on climate risk disclosures are developed, insurance industry argues for a measured approach.

Local executives expect the island to weather global reform efforts in light of Bermuda’s other advantages and the time it will take to implement minimum tax levels.

The news marks the second year in a row members have ceded more than $1bn in risk to the Caribbean Catastrophe Risk Insurance Facility.

The California Insurance Working Group suggested the policy to cover areas with high wildfire risk.

The new law limits insurer liabilities for attorney fee suits against insurers and reduces time limits for claims.

The new accounting framework is being brought in to replace current GAAP reporting measures.

The executive said reforms will help insurers, but more challenges remain to be tackled, as local executives remain divided on the potential impact of the legislation.