Air India plane crash to harden aviation reinsurance market: says GlobalData

The recent crash of Air India flight AI171 on June 12, 2025, is expected to make aviation reinsurance more expensive and harder to get. The accident, which involved a Boeing 787-8 Dreamliner, could lead to insurance losses of over $200 million—covering the destroyed aircraft, passenger liability, and damage on the ground. Since most of India’s aviation insurance is backed by international reinsurers (over 95% of the risk is reinsured abroad), the global reinsurance market will bear these losses. As a result, experts expect reinsurers to respond by tightening their terms, raising prices, and being more cautious when offering coverage, especially when contracts are renewed in 2026.

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Commercial insurance rate increases to moderate in 2025: says KBW

Keefe, Bruyette & Woods (KBW), an investment bank and research firm, expects the growth of commercial insurance rates to slow down in 2025 after several years of steady increases across most insurance types. In May 2025, commercial insurance rates rose by 3.0% compared to the previous year, slightly lower than April’s 3.3%. This shows that rates are still increasing, but at a slower pace and may soon drop below the usual cost levels insurers face for claims. Rate increases are slowing primarily for large insurance accounts and those at risk from natural disasters, which saw significant price jumps between early 2023 and mid-2024 because of higher catastrophe losses. Other insurance types have remained stable. The cost of workers’ compensation insurance increased by 1% after a long period without change, reflecting concerns about rising claims severity and medical costs, which may affect insurer losses before further price changes. Rate trends also vary by account size: large and jumbo accounts saw slower growth, small accounts stayed flat, and medium-sized accounts showed slight increases. Overall, KBW’s analysis indicates that while rate increases are slowing, commercial insurers continue to benefit from positive growth, and brokers can expect a more stable pricing environment throughout 2025.

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Insurers Have New Opportunity in Secondary Perils: says Swiss Re

Swiss Re, a global reinsurance company, has identified a significant opportunity for insurers to address “secondary perils”—lesser-known environmental risks that follow major disasters, such as droughts after wildfires or flash floods following hurricanes. While primary catastrophes like hurricanes are well-understood and modeled, insurers often lack data and models for these secondary events. As extreme weather events increase, these secondary perils are becoming more frequent and costly, yet they remain largely uninsured. For instance, in China, only 3% of the $10 billion in infrastructure damages from a recent super typhoon were covered by insurance. Swiss Re estimates that global assets exposed to climate risk could grow by 7% annually over the next 10 to 20 years, with a significant portion currently uninsured. Addressing this gap presents a substantial business opportunity for insurers to expand coverage and better manage emerging environmental risks.

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‘A rare privilege’: Neal bids farewell to Lloyd’s

John Neal left his role as CEO of Lloyd’s of London, marking the end of a significant chapter in the insurance market’s leadership. Neal, who started his career at Lloyd’s in 1985, has spent the past seven years as CEO leading major changes to improve the market’s performance, embrace digital innovation, and create a more inclusive culture. He describes his time at Lloyd’s as a “rare privilege” and praises the teamwork and commitment of everyone involved. As he steps down, leadership passes to Patrick Tiernan. Looking ahead, Neal is moving to Aon, where he’ll take on a global role focused on reinsurance and climate solutions.

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German non-life insurance sector surpasses forecasts as Fitch upgrades outlook

Germany’s non-life insurance sector—which covers areas like car, home, and business insurance—is doing better than expected. Fitch Ratings, a major credit rating agency, recently upgraded its outlook for this market from “neutral” to “improving”. This positive change comes because insurers have successfully increased their premiums by around 10 to 20%, especially in motor and property insurance. These higher premiums help balance out rising claims costs, including expenses related to natural disasters and inflation. Fitch now forecasts the sector’s premium income to grow by 6% in 2025, showing stronger momentum than before. Underwriting profitability, the profit insurers make from their core insurance business—is expected to recover more fully in 2025. Despite ongoing challenges like high claims costs and exposure to natural catastrophes, the combination of better pricing and healthier investment returns is helping insurers manage these risks more effectively. Overall, the outlook for Germany’s non-life insurance market is more positive, reflecting insurers’ ability to adapt and maintain profitability in a tough environment.

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US P&C insurers hit by $1.1bn underwriting loss in Q1’25 primarily due to LA wildfires: says AM Best

In the first quarter of 2025, U.S. property and casualty insurers experienced a significant underwriting loss of $1.1 billion, a sharp reversal from the $9.4 billion profit they earned during the same period in 2024. This loss was primarily caused by the devastating wildfires in California in January, which resulted in significant damage affecting both personal and commercial insurance lines. Despite a 7.8% increase in net premiums earned, rising claims and loss-adjustment expenses surged nearly 16%, outpacing premium growth and leading to the underwriting loss. The industry’s combined ratio worsened by about five percentage points to 99.4%, indicating that claims and expenses nearly equaled the premium income. Although net investment income grew modestly by 2.4% to around $20.5 billion, the overall net profit for insurers dropped by more than 50%, falling to $19.8 billion. This shows how the impact of large natural disasters can quickly outweigh gains from premium increases and investments.

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M&A insurance payouts hit record highs in 2024, driven by R&W claims: Aon

Insurance payouts related to mergers and acquisitions (M&A) reached record levels in 2024. In North America, companies recovered over $300 million in claims, mainly due to issues with representations and warranties insurance – a special type of insurance used mainly in mergers and acquisitions (M&A) deals. When one company buys another, the seller makes certain promises (called representations and warranties) about the business—like its financial health, legal compliance, tax matters, and key contracts. Claims in Europe, Middle East, and Africa also increased significantly this year, with many involving similar concerns. In the Asia Pacific region, countries like Australia, New Zealand, and India experienced more claims related to regulatory challenges, litigation, and disclosure. The article states the importance of strong cooperation between insurers, brokers, and clients to resolve claims fairly and efficiently, helping to protect the value of deals and support long-term business success.

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Munich Re’s ERGO expands Nordic presence with the merger of travel and health insurance units

Munich Re’s insurance arm, ERGO Group AG, has merged its Danish travel insurance company and its Norwegian health insurance company into a single, new Nordic business called ERGO Forsikring A/S. This new company will operate across Denmark, Norway, and Sweden, offering both travel and health insurance to individuals and businesses. By combining their operations, ERGO aims to strengthen its presence in the Nordic region, improve efficiency, and expand its customer base. The company plans to use shared resources, digital tools, and cross-selling opportunities to grow more effectively. Headquartered in Copenhagen, the new business employs 176 people and is seen as a key part of ERGO’s strategy for profitable growth in the region.

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