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Reinsurance

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Chubb to Lead U.S. Insurance Push for Hormuz Strait Shipping
business1 month ago

Chubb to Lead U.S. Insurance Push for Hormuz Strait Shipping

Chubb will be the lead underwriter for a U.S. government–backed program led by the U.S. International Development Finance Corporation to insure ships transiting the Strait of Hormuz amid the Iran war. The plan would cover hull, machinery and cargo, with up to $20 billion in damages on a rolling basis through DFC reinsurance, and could involve additional insurers; environmental damage coverage is included. The goal is to restart shipping and stabilize oil flows despite ongoing risks.

via CNBC|
#business#chubb#dfc
Actuarial Warfare: Reinsurance Tightens Hormuz into a Year‑Long Squeeze
world1 month ago

Actuarial Warfare: Reinsurance Tightens Hormuz into a Year‑Long Squeeze

Seven international P&I clubs canceled war-risk coverage under Solvency II tail risk, effectively closing the Strait of Hormuz to shipping and forcing a market‑driven regime where private reinsurance, governance fragmentation, and interceptor constraints create a six‑to‑18 month duration problem. The piece argues markets are mispricing this duration by about a factor of three and outlines hedging ideas and governance needs to reopen the chokepoint.

via Shanaka Anslem Perera | Substack|
#actuarial-warfare#oil-prices#reinsurance
Trump’s $20B reinsurance plan for Hormuz tankers faces questions of sufficiency
industries1 month ago

Trump’s $20B reinsurance plan for Hormuz tankers faces questions of sufficiency

Trump unveiled up to $20 billion in U.S. Development Finance Corporation-backed reinsurance to help oil tankers navigate the Strait of Hormuz amid Iran-related conflict, covering hull, machinery and cargo for qualifying vessels. Analysts doubt the size and scope will be enough to unlock passage or calm markets, noting only a subset of ships would be insured, current traffic through Hormuz is about eight ships per day (roughly 94% below normal), and JP Morgan warns storage-tightening disruptions could force multi‑million-barrel-per-day production cuts as global oil flow remains vulnerable. Investors remain skeptical until clearer eligibility rules are announced and broader drone/war risks are mitigated.

via MarketWatch|
#dfc#industries#iran-conflict
US backs $20B insurance to unlock Strait of Hormuz shipping
world1 month ago

US backs $20B insurance to unlock Strait of Hormuz shipping

The Trump administration announced a rolling $20 billion reinsurance program via the U.S. International Development Finance Corporation to insure losses on oil tankers and other maritime traffic through the Strait of Hormuz, aiming to restart flows amid Iran-related tensions; officials say the plan could help move crude, LNG, and other cargoes, as oil prices jumped, though security concerns remain the main hurdle for ships.

via CNBC|
#dfc#iranconflict#oil
"Escalating Home Insurance Costs Burden Florida Residents"
finance2 years ago

"Escalating Home Insurance Costs Burden Florida Residents"

Home insurance rates in Florida are already four times the national average and are expected to increase further, with Insurify projecting a 7% rise in 2024. The state faces an "explosive" hurricane season, potentially breaking the record for named storms. Severe weather-prone states like Florida, Louisiana, and Texas are vulnerable to rate hikes, with Florida homeowners paying the highest average rate of $10,996. The state's insurance crisis is exacerbated by reinsurance challenges, insurance fraud, and legal system abuse. Efforts by the Florida Legislature and Governor DeSantis aim to address rising costs, but homeowners are advised to prepare for potential damage and research ways to protect their homes.

via News-Press|
#finance#florida#home-insurance
State Farm's Retreat: California Home Insurance Crisis
insurance-california-policyholders-reinsurance-legislation2 years ago

State Farm's Retreat: California Home Insurance Crisis

More than 70,000 State Farm policyholders in California were informed that their insurance policies would not be renewed, leaving them scrambling for alternatives. The decision comes amid rising home insurance rates and a retreat by major insurers from the state, citing financial risk and limitations of working within decades-old insurance regulations. This trend is pushing more people onto the California FAIR Plan, the insurer of last resort, which is starting to show signs of strain. The issue of passing through reinsurance costs to policyholders is a major sticking point, with potential federal legislation and state policies being considered to address the situation.

via The San Francisco Standard|
#california#insurance#insurance-california-policyholders-reinsurance-legislation
"Florida's Home Insurance Crisis: Challenges and Solutions"
financeinsurance2 years ago

"Florida's Home Insurance Crisis: Challenges and Solutions"

Florida's home insurance market has become dysfunctional due to surging property insurance costs, with average premiums costing homeowners $6,000 a year, more than triple the national average. Factors driving the insurance challenge include more frequent and costly natural disasters, skyrocketing reinsurance prices, and a litigation-friendly environment. Florida's response includes passing Senate Bill 2A, aiming to discourage needless lawsuits and restrict assignment of benefits, but the long-term impact remains uncertain, with other disaster-prone regions watching closely.

via The Conversation|
#financeinsurance#florida#insurance-market
Swiss Re's 2023 Net Profit Soars, Warns of Climate Costs
finance2 years ago

Swiss Re's 2023 Net Profit Soars, Warns of Climate Costs

Swiss Re, the insurance giant, reported a 580% increase in full-year profit, reaching $3.2 billion, and proposed a 6% dividend increase, attributing the growth to a more favorable market environment. CEO Christian Mumenthaler expressed optimism about the company's outlook but warned that the impact of climate change would soon be felt by consumers, leading to increased risks and costs. He emphasized the need for fair pricing to reflect these heightened risks, as shares of Swiss Re dipped by 2.1%.

via CNBC|
#climate-change#finance#insurance
Record-breaking Thunderstorms Cause Unprecedented $84 Billion in Insured Losses
natural-disasters2 years ago

Record-breaking Thunderstorms Cause Unprecedented $84 Billion in Insured Losses

Intense thunderstorms in the U.S. during the first half of 2023 resulted in a record-breaking $34 billion in insured losses, according to a Swiss Re report. Texas was the most affected state, with over $7.2 billion in insurance losses. Globally, severe thunderstorms accounted for nearly 70% of insured natural catastrophe losses in the same period. The increase in insured losses is attributed to a warming climate and rapid urbanization. Overall, insured losses from natural catastrophes in the first half of 2023 reached $50 billion, surpassing the 10-year average by 42%.

via Fox Business|
#climate-change#insured-losses#natural-disasters
State Farm drops California home insurance coverage.
business2 years ago

State Farm drops California home insurance coverage.

State Farm, the largest car and home insurer in the US, has announced that it will no longer sell new home insurance policies in California due to the high risk of catastrophic wildfires and rapidly rising inflation costs. Existing policyholders will not be affected, and the company will continue to sell car insurance in the state. The decision was made to improve the company's financial strength, and State Farm will continue to evaluate its approach based on changing market conditions.

via Daily Mail|
#business#california#home-insurance