Wayne Speeg

As climate change accelerates, the demand for agile, scalable reinsurance solutions is growing.

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Our updated US #Wildfire model comes at a needful time. The market at large is looking for social awareness of the true & immediate hazard for property owners. #insurers & #reinsurers demand a stable and coherent view of the fair technical price of #catastrophe risk. To meet demand our updated model features . enhancements to the fire spread model, especially in the wildland-urban interface . insurance loss modeling of smoke damage outside of the wildfire perimeter, basic principles, https://lnkd.in/ePkR9B8j . the incorporation of data from recent fire seasons, including fuel information supplemented with insights from Fireline® . accounting for coverage and spatial dependencies in all accumulations, see https://lnkd.in/eBvWg7QM https://lnkd.in/eVwzckVj #californiainsurance, #extremevents, #riskmanagement, #actuarialscience

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This is a good report with nice visual presentation of data from our colleagues at Gallagher Re. Putting the insured and economic loss together gives a strong perspective of the #insurance coverage gap. For readers outside of the industry & for #publicsector & political leaders it is a good data point of motivation in the continuous effort to reduce the gap. https://lnkd.in/eiMgu-ng

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Directors and Officers Liability for 2023 had the best loss ratio it’s had in nearly a decade, but AM Best is not convinced it will stay that way. Insurers aren't pressed to increase rates because of favorable results, and more insurers have entered the market recently. So, why is AM Best concerned? Lions in the grass… one of which being lawsuits from previous years, some of which are resulting in significantly increased settlements. Full article linked below in the comments. #directorsandofficers #insurance 

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Facing challenges from water damage? CNA Insurance shares ways you can leverage technology with IoT-integrated sensors, backup sump pump solutions and more to minimize impact. Explore our resources for proactive risk management: https://ow.ly/j5Ar50Rnbt1

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The 2024 Atlantic #hurricane season has already caused around $4.1 billion in #insured losses however, experts suggest this could be just the beginning. Historically, most hurricane damage in the U.S. has occurred after mid-August. Discover more details on how the season might intensify by reading the article. #Florida #Losses

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2024 is off to an active start for severe convective storms (SCS) in the United States. SCS is an umbrella term for a range of hazards that stem from severe thunderstorms, including tornadic and straight-line winds, as well as large hailstones. I think the weekend outbreak in the middle of the country will almost certainly rank as the third (maybe the fourth or fifth) SCS event to cause over $1-Billion in total economic loss as ranked by NOAA's Billion Dollar Disasters. Severe Storms from March 13 - 15 of this year caused over $ 4b in losses due to severe storms that impacted many Central and Southern states. Kansas, Oklahoma and Missouri were affected by up to baseball-sized hail damaging homes, vehicles, businesses. Illinois, Indiana, and Ohio were impacted by hail, high wind and dozens of tornadoes including a deadly EF-3 striking northwest Ohio. Storms in the first few days of 2024 caused nearly $2b in losses due to a southern tornado outbreak and East Coast storm that impacted more than a dozen states. At least 39 preliminary tornadoes were clustered around the Florida Panhandle through the Carolinas, while hundreds of high wind reports were scattered up the East Coast. The strongest tornado was an EF-3 that caused significant damage around Panama City Beach, Florida after an intense waterspout moved onshore. Adam Smith Our team here at Demex focuses on building financial resilience to SCS for insurers who back these losses. We are proud partners with Gallagher Re who estimate that the costliest peril for insurers in the first quarter of 2024 was SCS and early global estimates exceed $11b of insurance losses. Gallagher Re said this marked the second-most expensive first quarter for SCS claims after last year’s record-setting SCS losses of $15b in Q1. Steve Bowen Insurance is a critical mechanism in global economic resilience in the face of a changing climate and an economy of growing value in assets that lie in harm's way. There are times when insurance claims drive the economy by expediting financial recovery. Insurance payments benefit not only those directly affected by loss, but others as well. For example, claims payments end up at auto repair shops and home improvement retailers to fix cars, and rebuild homes. By supporting these businesses, economic growth is further stimulated. AMS Committee on Financial Weather/Climate Risk Management Payments to policyholders in 2023 alone and isolated to only the impact from SCS amounted to $ 70 billion in this country (according to our friends and partners at Aon). Daniel Hartung Insurance companies don't have to manage this risk alone. Our team here at Demex has already built nearly $65m in new financial coverage for insurers to become more resilient to SCS losses. This protection can prevent such losses should from driving credit downgrades, insolvencies, and market withdrawal. The Demex Group

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The insurance industry is gearing up for big changes with CPS 230 set to reshape operational risk management. Some call it a game changer, while others worry it could push smaller players out. As regulatory expectations rise, especially around risk management and supplier oversight, it’s clear that adaptability will be key. With challenges come opportunities—mergers and acquisitions could offer a fresh path for those ready to evolve. It’s a pivotal time where resilience and culture will decide who thrives in this new landscape. #insurance #CPS230 #insuranceinnovation

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The 2024 Atlantic #hurricane season has already caused around $4.1 billion in #insured losses however, experts suggest this could be just the beginning. Historically, most hurricane damage in the U.S. has occurred after mid-August. Discover more details on how the season might intensify by reading the article. #Florida #Losses

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NEW BMS Group Severe Weather Update 05/29/2024 Less than two months ago, on April 24th, the BMS Severe Weather update issued a stark warning to the insurance industry: prepare for another brutal, severe weather season in the U.S. This BMS insight is a timely update on whether this severe weather pattern will persist into June. Since the April 24th update, insurance losses have skyrocketed, surpassing $10 billion, and are projected to be nearly $20 billion by the end of May. These staggering figures are a result of several significant events, including severe thunderstorms in Dallas and a derecho in Houston, which left over 2.07 million customers in Texas without power. Estimating insurance losses from severe weather is a multifaceted task, with numerous variables at play. Recent high-profile events have demonstrated the wide-ranging effects of severe weather, from the destruction of a Dollar Tree distribution center in Oklahoma to damage sustained by wind turbines in Iowa. These losses in the commercial and renewable energy sectors underscore the challenges insurers face in adjusting claims and the potential for inflation to drive up repair costs across the industry. Insurers are responding with changes, such as higher deductibles and roof-only exclusions, but the full impact of these measures on reported losses may not be understood for years. Despite these efforts, this year's severe weather losses are already 128% above the 10-year average, with 27 loss events reported by the end of May, which surpasses last year's total of 23 events. The BMS Insight provides a comprehensive view of the persistent severe weather, as evidenced by various metrics, such as the high number of tornado warnings and severe weather days recorded by the Storm Prediction Center. With over 1,919 tornado warnings issued and 3,142 large hail events reported, 2024 is shaping up to be one of the most active years for severe weather since 2011. We also highlight some of the valuable lessons that can be gleaned from this recent severe weather. The insurance industry is closely monitoring these insights and using advanced tools and research to better understand and mitigate the risks. One notable example of this, is the work of the Insurance Institute for Business and Home Safety (Insurance Institute for Business & Home Safety - IBHS) who are focused on improving hail and wind damage mitigation. BMS is a proud member of the IBHS, demonstrating the industry's commitment to proactive risk management. While a potential shift in weather patterns by mid-June might reduce tornado activity, it raises concerns about increased wildfire risks due to drying conditions in the western U.S. as fine fuels become more susceptible to ignition. #Insurance #Reinsurance #RiskManagemnt #SevereStorm #Tornado Click The Link Below for Amazing Content 🔽 https://lnkd.in/gpwqv5Gd 

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Hurricane Helene made landfall this week as a Category 4 hurricane, causing widespread damage, devastating flooding, and leaving millions without power. So many resources and tools to help from our talented teams. Stay safe and access direct claims information immediately.   Gallagher is ready to help ➡ https://lnkd.in/gnu5KC92   #insurance #riskmanagement #claims #safetyfirst

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When disaster strikes…🌪️🌊🔥 The least thing you need is argumenting about loss degrees 🧮💻🟰 Check out Swiss Re #RapidDamageAssessment tool. Let’s create #ValueBeyondRiskTransfer together.

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A new report from Aon revealed global insured losses due to national disasters hit $102 Billion at the end of September and are on track to pass last year’s total of $125 Billion. Category 3 Hurricane Milton hit Florida in early October, so its losses were not included in the $102 Billion. Hurricane Helene was the costliest insured loss event during the first nine months of this year. Full article linked in the comments below.    #insurance #weather #loss  

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Surplus lines have seen double-digit growth for six years and continue to play a key role in covering unique and evolving risks that standard carriers struggle to handle. E&S is the hub for insurance innovation in a world of changing risks, offering flexibility and custom solutions for hard-to-place exposures. As demands grow more complex, E&S meets the challenge, driving resilient growth and keeping the industry adaptable. This year marks Slice's 9th year writing in the E&S market and filling gaps for hard-to-place businesses. Our current AM Best A++ small and mid-market offerings are best in class. Check out the post to learn more!

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If you have a self-funded plan, this information is essential. Did you know that you own your own data? Don't let those who refer to codes as "dummy codes" intimidate you or deny you access to your data. This blog highlights several examples of questionable insurer-TPA practices that court cases have uncovered in recent years. Many of these practices may violate ERISA’s fiduciary duties, including requirements that health plan fiduciaries like TPAs act “solely in the interest of the participants and beneficiaries of the plan” when administering a health plan and dispensing its assets. Problematic TPA practices may also—directly or indirectly—contribute to excessive health care spending by health insurance plans and, ultimately, the members and sponsors footing the bills. •Hidden Overpayments TPAs have long kept employers in the dark about the prices employer health plans pay for care. In the Consolidated Appropriations Act of 2021 (CAA), Congress banned “gag” clauses in payer-provider contracts, which restrict plans’ ability to access their own de-identified claims data. But experts have reported compliance problems (aspects of which the Department of Labor (DOL) addressed in recent FAQs). •Buried Fees Inflated reimbursement rates aren’t the only charges hidden from employer health plans. Several lawsuits allege TPAs are hiding administrative fees from their clients. Although provisions of the CAA should shed more light on compensation going to plan service providers, compliance is far from perfect, especially among TPAs and pharmacy benefit managers who argue the law does not apply to them, despite congressional leaders’ contrary views. One example is Aetna’s alleged use of “dummy codes.” •Cross-plan Offsetting Cross-plan offsetting is a process some insurer-TPAs use to recoup alleged overpayments to health care providers. Although paying claims accurately is important, in practice, cross-plan offsetting overwhelmingly benefits the insurer-TPA at the expense of providers, patients, and health plans. Despite concerns from multiple courts and the Department of Labor that this practice creates a significant conflict of interest that may violate ERISA’s fiduciary obligations, UnitedHealth appears undaunted—in 2019, the insurer-TPA captured $1.354 billion through cross-plan offsetting and, in 2021, a spokesperson affirmed its commitment to overpayment recovery. •Better Monitoring Ahead Employers would be well-advised to look more closely at their health plan contracts to ensure they are not unwitting participants to practices that may violate ERISA’s fiduciary duties and potentially increase their members’ financial exposure. *Thanks to the CAA, plan sponsors have a right to information about what they are paying for care and how their service providers are being compensated and, indeed, an obligation to get it.* https://lnkd.in/gp3d_22J

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Liberty Mutual Holding said it sustained $550m in estimated pretax losses from Hurricane Helene, which will be reflected in its third-quarter financial report. Estimated losses from Hurricane Milton are still developing but are currently between $250m and $350m, the insurer said. Those losses will be recorded in the fourth quarter. More... https://ow.ly/Ato150TVGYI #HurricaneHelene #HurricaneInsurance #RiskManagement Liberty Mutual Insurance

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