12 | JULY 2018 | NATIONAL UNDERWRITER PROPERTYCASUALTY360.COM
ratio of 94.8
quarter 2018, the lowest three-month
combined ratio of the last five years,
according to a new A.M. Best special
report titled, “First Look — 1Q 2018
U.S. Property/Casualty Financial
Results.” The combined ratio improved
4. 9 points year over year.
improvement to net
during the first three
months of 2018
by growth in net
of 15.2% (which
offset a 3.1% increase in losses and
loss adjustment expense incurred),
and a 12.7% rise in both underwriting
expenses and policyholder dividends,
A.M. Best said.
In a recent study of
18 states conducted
by the Workers
costs per claim were
found to be the
highest in Louisiana.
Edition,” found that
the average total
cost per workers’
in the Pelican State
rose 4% to 10% per
year since 2012 at
claim maturities from
12 to 48 months.
growth in indemnity
costs, which drove
the increase in
total cost per
claim from 2011
to 2014 for claims
at 36 months of
accounting for fairly
similar shares of the
growth, at 40% and
Steve Levy, president and CEO of Munich Reinsurance America, Inc.’s Reinsurance Division, was
elected chair of the Reinsurance Association of
America’s Board of Directors on May 17 during the
50th Annual Meeting of Members. John Welch, XL
Catlin chief executive, North America Reinsurance,
was elected vice chair, and Kathleen Reardon, CEO
of Hamilton Re, was elected secretary-treasurer.
PREMIUMS CHARGED by FEMA’s
National Flood Insurance Program could double in two
to three years if they start to
reflect the risk of sea level rise,
according to real estate trade
publication The Real Deal.
For example, a spike in
federal flood insurance premiums would be costly for current
property owners and also would
discourage outside investment
in Miami real estate, said attorney Wayne Pathman, chairman
of the City of Miami Sea Level
Rise Committee. He added that
Miami needs a 40-year plan to
deal with sea level rise to keep
bankers, insurers and investors
from writing off the region.
The American Insurance Association (AIA) and the Property Casualty
Insurers Association of America (PCI)
released a joint statement on June 20
indicating that merger discussions
and appropriate due diligence had
been authorized in order to explore a
union of the two organizations.
“The respective Boards of AIA
and PCI believe there is great benefit
in a more unified policy and advocacy voice for property casualty insurers, given the unprecedented pace of change in the
world and the resulting potential opportunities and challenges,” the statement read.
It was stressed that a great deal of work remains ahead
before a recommendation could be put before both memberships for a vote.
If AIA and PCI should merge, the resulting trade association
would speak for approximately 60% of the U.S. P&C market and
create an even more influential voice for the insurance industry
A More Perfect Union?