Daily Market Update - February 10, 2015

Daily Market Update - February 10, 2015 | Insurance Business America

Daily Market Update - February 10, 2015

Commercial lines rates continue to fall says report
Competition and more investment in the industry are continuing to drive down rates especially in commercial lines. That’s according to research from Marsh which has released its Insurance Market Report 2015. Among the findings is that the commercial property insurance market softened last year and expected to continue that way this year. The report also sees a softer market for casualty insurance but says that 2014 was the first profitable year for this sector since 2006. There is a more positive outlook for the cyber insurance market although rates will continue to be volatile. In the last quarter of 2014 they rose by an average of between 2 and 10 per cent. Read the full report.
 
Insurers boost profits with predictive modeling
The breadth and depth of predictive modeling applications have grown, but of equal importance, the percentage of participants reporting a positive impact on profitability has dramatically increased, Towers Watson's most recent predictive modeling survey finds. The firm’s Predictive Modeling Benchmarking Survey indicates that its use in risk selection and rating has increased significantly for all lines of business over the last year, continuing a long-term trend. Two commercial lines (property and auto) sustained year-to-year increases of 19 percent in the use of modeling. Specialty lines exhibited the largest increase (44 per cent versus 13 per cent). Read the full report.
 
AON works with World Economic Forum on cyber risk modeling
Aon Risk Solutions is working with the World Economic Forum to determine a new way for organisations to identify the impact of cyber threats. The framework called Cyber Value-at-Risk is to help organizations to make better choices about cyber security investments and strategies. Aon’s chief innovation officer Stephen Cross says it vital that businesses of all sizes and industries recognise the threat from cyber attacks and highlights the potential for a much bigger impact than we’ve seen this far: “One of the risks facing the insurance industry today is the potential for a cyber-hurricane, an event which could impact multiple lines of business, geographies and industry sectors.” A new report has been created as a result of the framework for cyber risk modeling.