News - Markets & trends

Munich Re: Series of billion-euro market losses due to natural catastrophes in Europe

Insurance markets currently have to cope with growing uncertainty: inflation, geopolitical crises, rising cyber risks, and an increased frequency and severity of natural events, also in Europe where we have seen an unprecedented series of natural catastrophe losses exceeding the 1-billion-euro mark this year. These changes will be at the center of the upcoming renewal discussions, Munich Re stated anticipating the reinsurers’ meeting in Baden Baden.

Swiss Re: New digital risks call for insurance innovation

Digitalization is a source of new growth, new risks and new efficiencies for the insurance industry. Digital value creation has led to an increase of firms' intangible assets, including digital data. At the same time, increased dependency on digital infrastructure makes such assets more vulnerable, for example to business interruption and cyberattacks. In its latest sigma study, "The economics of digitalization in insurance", Swiss Re Institute finds that potential benefits across countries and throughout the insurance value chain are far from exhausted.

Earnix: New developments require new strategies for success in the insurance industry

To say that the insurance industry is currently changing would be vastly understating the impact of so many new developments and market conditions. Insurance carriers today are confronted by unprecedented change, coming all at once and from a wide range of factors, reads the “Insurance Operations in a Changing Industry” report issued by Earnix, a global provider of mission-critical, intelligent solutions that are designed to transform how global Insurers and Banks are run.

An 80% stake in Moldova’s insurance market leader, MOLDASIG, for sale

MOLDASIG S.A., the leader in the insurance market in the Republic of Moldova, is making available for purchase an 80% stake in the company's share capital in a single package of tradable shares on the regulated market of the Republic of Moldova. The purpose of this offering is to strengthen the company's reputation and financial stability.

EEA: What could the summer bring? Is extreme weather the new normal?

Weather- and climate-related extremes caused economic losses estimated at EUR 560 billion in the EU between 1980 and 2021, of which only EUR 170 billion (30%) were insured. Nearly 195,000 fatalities have been caused by floods, storms, heat- and coldwaves, forest fires and landslides. Heatwaves caused over 87% of the total number of fatalities from extreme weather events between 1980 and 2021.

Fitch Ratings: Global reinsurers pull back from natural catastrophe cover

As Nat Cat business has become largely loss-making in recent years after many years of soft market, global reinsurers are cutting back on the cover they provide against medium-sized natural catastrophe risks, mostly by tightening T&C, Fitch Ratings says, adding that under the investors’ pressure reinsurers are looking now to other parts of the market showing better profitability.

Secondary perils brought into the limelight -are they taking on the leading role?

Secondary perils, namely the natural risks producing small to mid-sized loss events, were initially called so to diferentiate them from the primary perils, those of catastrophic dimensions and nature as earthquakes and huricanes. Nowadays, their cumulated impact became similar to a “Death by a Thousand Cuts” scenario, an article of Moody’s RMS blog reads.

Swiss Re: Severe convective storms accounted for ~70% in insured losses worldwide in the 1H 2023

Severe convective storms – storms associated with thunder, lightning, heavy rain, hail, strong winds and sudden temperature changes – caused USD 35 billion, nearly 70% in insured losses worldwide in the 1H 2023. This means that insured losses are almost twice as high in a six-month period as the annual average of the last ten years (USD 18.4 billion), Swiss Re said in a recent article.

Guy Carpenter: Reinsurance market continues to recalibrate at mid-year 2023 renewals

The broader market trends seen at January 1 continued at mid-year renewals, but with improved timing and concurrence around terms and conditions. While property pricing saw continued risk-adjusted rate increases in many segments, the average change moderated from January 1, according to reinsurance broker Guy Carpenter, part of Marsh McLennan.

Swiss Re: Next wave of life expectancy gains is on the horizon

Gains in human longevity have tapered off over the last decade but the next wave of improvements is on its way, says Swiss Re's latest report, The future of life expectancy: Forecasting long-term mortality improvement trends for insurance. Advances in cancer diagnosis and treatment are the most likely areas to improve global longevity, according to the report. Future improvements will need to be supported by addressing older-age health issues such as Alzheimer's, lifestyle factors and access to healthcare.

UKRAINE: How do insurance companies handle the challenges of an ongoing war

The Ukrainian Insurance Business Association participated in Insurance Sweden Annual Conference 2023: Crisis and war - what is the role of the insurance industry? Vyacheslav Chernyakhovsky, general director of the association, presented the topic "How do insurance companies handle the challenges of an ongoing war".

OECD: inflation edges down to 9.2% in January 2023, as energy inflation slows

Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) fell slightly to 9.2% in January 2023, down from 9.4% in December. Declines in inflation between December 2022 and January 2023 were recorded in half of the OECD countries, compared to two-thirds between November and December 2022. The highest inflation rates were recorded in Hungary, Latvia, Lithuania and Turkiye (all remaining above 20%).

Swiss Re's multidimensional view of motor risk

Challenging times for the automotive industry. From lingering supply chain disruptions to global food shortages and the energy crisis, the economic landscape has been cumbersome, and companies worldwide have had to adapt to this complex new environment.