Zurich CEO quits, firm pulls back from two insurance markets
Global insurer Zurich is making news today as its chief executive has quit following the firm’s difficult third-quarter. Martin Senn has left his role immediately with chairman Tom de Swann taking temporary control. In a statement Senn said that the insurer has had some “setbacks in recent months” but he expected better performance ahead.
The Swiss-based insurer has also announced that it is to stop writing certain policies in two markets following a strategic review. The life insurance business in Singapore, operated under the Zurich International Life division, will stop writing new policies from Dec. 1. Existing life policies and the firm’s general insurance business in the city state is unaffected.
Zurich is also pulling out of a number of Middle East markets for general insurance. It has identified that the UAE, Oman, Kuwait, Lebanon and Bahrain markets for general insurance have limited potential for profitable growth and will stop writing policies there by the end of 2016. Its life insurance products in the Middle East will continue.
Hurricane season was not completely passive
The Atlantic Hurricane season officially ended Monday but while incidents were below the season-average it was still a close call for devastating impacts. The Insurance Information Institute notes that there were 11 tropical storms and four hurricanes during the 2015 season with two of the four hurricanes becoming major ones at their respective peaks. None hit the US with any force but the institute says that if they had the damage could have been devastating. The III notes that 5 of the 10 costliest hurricanes in US history, as defined by insured losses, have occurred over the past decade. The III’s report adds to others in the industry that have warned against complacency in the coming years as there will be more high-impact hurricanes in future seasons.
Auto insurance to face “considerable challenges” in 2016 says Fitch
An outlook for the US auto insurance industry for 2016 highlights a challenging year ahead. Fitch Ratings notes that in the first 9 months of 2015 there was a reversal of the improved underwriting profitability of the previous 2 years. The report says that the figures counter to expectations that there would be reductions in claim incidents as vehicle safety technology improved. For 2016 the ratings firm says that auto insurers will face “considerable challenges in improving results in 2016” primarily in managing claims costs. It says that competition remains fierce with underwriters battling via pricing, enhanced risk selection models, and advertising.
