The Intelligent Quarterly from the publishers of The Insurance Insider

Summer 2017

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A touch of class

A&H
Scor has entered the US medical reinsurance market by offering reinsurance coverage for health maintenance organisations and insurers.

The reinsurer will offer provider excess and employer stop-loss insurance, subject to regulatory approval.

The coverage will be written through wholly owned affiliate General Security National Insurance Company, which is housed within the Scor Global Life division.

Kelly Munger leads the initiative, after a promotion from the position of senior vice president of group health reinsurance for Scor in the US. She joined Scor in 2014 as vice president and medical reinsurance actuary for the firm.

Scor's medical reinsurance operation is based in Minneapolis.

Marine
Marine mutual insurer TT Club grew its top line by 3.3 percent in 2016, while underwriting profitability dwindled.

Gross earned premiums increased by $5.8mn year-on-year to $177.8mn, while the combined ratio deteriorated slightly to 95.3 percent from 94.4 percent in 2015.

Gross paid claims were $108.6mn last year, up from the $90.0mn reported in 2015, when the insurance market was hit by the Tianjin port explosion in China, although TT Club chairman Ulrich Kranich noted that its Tianjin claims "developed at the lower end of the expectations".

Kranich said the insurer also took a hit last year from the collapse of South Korean shipping giant Hanjin.

Workers' comp
Michael Millette's Hudson Structured Capital Management has said it hopes to conduct further transactions with Bermudian reinsurance platform MultiStrat after completing a $20.1mn run-off deal linked to workers' compensation liabilities.

The fund manager was the major investor in a $35.3mn reinsurance vehicle set up by MultiStrat Advisors.

The deal also involved $110bn fixed income asset manager Payden & Rygel, which will manage the investment portfolio connected to the workers' compensation transaction.

It is understood that due to the nature of the investment portfolio and the mature profile of the workers' compensation business, the main risk associated with the transaction is linked to health and longevity.

Cyber
The global cyber reinsurance market hit approximately $525mn of premium in 2015, according to a study by Aon.

In its "Global Cyber Market Overview", the broker said 95 percent of this premium was written on a quota share basis. Around 15 reinsurers actively write standalone cyber treaties.

The report estimated global standalone cyber insurance premiums at $1.7bn, based on 2015 data, of which around 30 percent is written by Lloyd's carriers.

In the US, which accounts for 90 percent of global cyber insurance premium, the market is dominated by five players that account for 60 percent of US cyber premium.

Aviation
The pricing of aviation risk is unsustainable and a major catastrophe on top of mounting attritional losses is likely to throw the sector off balance, according to Global Aerospace group CEO Nick Brown.

Speaking at Mapfre Global Risks' biannual international conference, Brown said that although major aviation losses had diminished in recent decades as airline safety improved, small claims from day-to-day operational risk, including partial hull and baggage claims, were growing overall.

Brown said aviation rates had continued to decline while day-to-day claims had remained around the same level or increased slightly. "That cannot be sustainable," he said.

Terrorism
Lloyd's insurers Brit and Talbot jointly provide terrorism cover to Ariana Grande, the singer whose Manchester concert in May was attacked in a suicide bombing, sister publication The Insurance Insider revealed.

Grande cancelled tour dates in London, Antwerp, Lodz, Frankfurt and Zurich after the attack, with market sources provisionally estimating the pending claim at £300,000 ($387,000).

Pop band Take That, which also postponed gigs following the Manchester bombing, looks set to receive a payout in the £500,000 to £1mn ($647,000-$1.29mn) range on a contingency cover led in Lloyd's by Brit, and followed by Antares, Chaucer and ArgoGlobal.

This article was published as part of issue Summer 2017

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