Topical Market Intelligence Reports
Advisen's briefings and topical reports examine a wide range of issues, both current and long-term, concerning the commercial insurance industry and its professionals. From the sub-prime mortgage meltdown, to Hurricane Katrina, to cyber liability, these reports break down the complexities and subtle issues behind events, and clarify their impact on insurance professionals in a meaningful and authoritative fashion.
A five-year soft market, fueled by chronic overcapacity, is coming to an end. Following two years of record profits, losses from both underwriting and investment activities are destroying excess insurance capacity, signaling that the bottom of the commercial insurance pricing cycle is near. Private equity firms and hedge funds have seen stellar growth over the past decade, riding the wave of easy credit and eager investment poolsmore...
Private equity firms and hedge funds have seen stellar growth over the past decade, riding the wave of easy credit and eager investment pools more...
Utilizing the concepts of academic research on aggressive accrual accounting policies, Advisen introduced proprietary adjustments, and created a powerful tool - Advisen Total Accrual metric (ATACm) more...
Advisen Ltd., the leading provider of content, analytics, and technology to the global commercial insurance industry, released a special report based on a survey of brokers following the American International Group (AIG) liquidity crisis.more...
Most AIG commercial lines policyholders participating in an Advisen survey reported that, while they are confident in the financial strength of AIG insurance companies following the $85 billion loan by the federal government, more than two thirds plan to get quotes from AIG's competitors when their policies renew. more...
Advisen is committed to providing a portfolio of measures for insurance professionals, only available on Advisen, to consider in assessing the risk of companies.more...
Advisen Report: Liabilities incurred under sophisticated financial instruments ravaged American International Group. As AIG teetered on the verge of bankruptcy Monday and Tuesday, brokers were flooded with calls from nervous AIG policyholders. more...
Data security breaches can potentially cost companies tens of millions of dollars in fines and penalties, loss mitigation expenses, and settlements of lawsuits. more...As insurance products become more sophisticated and responsive to the data security risks of large companies, and as enterprise risk management processes are more widely implemented, corporate risk managers will be increasingly involved in the treatment of cyberliability exposures.
Which insurance decisions and coverage issues are likely to be impacted by Nanotechnology, the manufacture and manipulation of materials at the molecular or atomic level? Nanotechnology holds the promise of higher agricultural yields, diminished pollution, renewable energy sources and less expensive water filtration systems. more...However, the risks associated with these new processes and materials are still largely unknown. Insurers and risk managers only now are beginning to address the liability and safety issues associated with the impending onslaught of transformational products.
Cell phones have become an essential business tool, but studies have demonstrated that cell phone use while driving can lead to increased risk of an accident. Recent lawsuits highlight the potential liability of employers for damages caused by employees using cell phones while driving on company business. more...An employer with a strong cell phone policy will be in a far better position legally than the employer who has no policy. However, having a policy is not a bulletproof shield against liability.
After skyrocketing between 2001 and 2003, commercial insurance premiums in most lines have been falling since the beginning of 2004. The soft market shows fews signs of abating in 2008. more...Barring major catastrophes, insurance buyers should see steadily falling premiums throughout the year.
Traditional insurance products are inconsistent with certain Islamic principles. As a result, assets owned by Muslims are largely uninsured. Takaful, a viable alternative to traditional insurance acceptable to Muslims has recently emerged as one of the fastest growing segments of the global insurance market. more...The growth potential for Takaful in Muslim countries is clear, but a strong opportunity also exists in the US and Europe to meet the insurance needs of millions of Muslims and tens of thousands of Muslim-owned businesses. The opportunities also extend to the reinsurance market, as Takaful operators seek reinsurance coverage that also is in compliance with Islamic law.
The substantial financial losses associated with subprime mortgage lending and the follow-on impact on the credit markets are expected to result in increased frequency and severity of losses under directors and officers liability ("D&O") and errors & omissions ("E&O") policies. more...As of this date, insurance analysts have pegged the potential underwriting exposure of D&O and E&O insurers for losses resulting from subprime lending to be as high as $8 billion. This estimate does not include or address investment losses incurred by insurers through investment of their premium dollars. This analysis also does not address the related issue of D&O and E&O exposures arising from credit risk problems resulting from - but not related to - subprime lending.
To date, more than $170 billion has evaporated from the balance sheets of companies around the world as the result of the meltdown of the U.S. subprime mortgage market. more...Commercial banks and investment banks have been the hardest hit, with write-downs for Citigroup and UBS alone accounting for more than $28 billion. Losses have been nearly evenly split between U.S. and non-U.S. companies.
A flurry of high-profile recalls of Chinese-made products has sparked more than 100 lawsuits against American companies. more...The speed of China's expansion into the global export market has not been matched by a growth in the countrywide regulatory infrastructure, but American companies and consumers have few avenues of legal recourse against Chinese manufacturers.
Corporate governance and accounting scandals costing investors billions of Euros have led to new disclosure requirements, enhanced shareholder protections and a greater willingness on the part of investors to take legal action throughout Europe. more...nstitutional investors have become more active in policing corporate governance and performance. Lawyers and plaintiffs have gained experience in litigation against directors and officers, and U.S. law firms with broad experience in class action litigation are bringing their expertise to Europe. Litigation funding firms have proliferated. Some analysts predict that Europe is poised for an epidemic of shareholder suits.
Like every other industry, the insurance industry is subject to the law of supply and demand: when supply exceeds demand, prices fall. more...n the current market, aggregate policyholders' surplus - supply in the insurance supply-and-demand equation - is growing strongly, leading to heightened competition and downward pressure on rate levels. Unless catastrophe losses in 2007 are unusually severe, cutting deeply into aggregate policyholders' surplus, it is likely that commercial insurance buyers will enjoy sharply lower premiums in most lines of insurance throughout the year and into 2008.