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AM Best Maintains a Negative Outlook for the French Non-Life Market

According to AM Best's latest Best's Market Segment Report, "Market Segment Outlook: France Non-Life Insurance," growth in total non-life premium income in France is predicted to continue in 2024, but at a rather slow pace after accounting for inflation. Since the French central bank, Banque de France forecasts real GDP growth of only 0.8%, top-line growth for the category is historically tightly correlated with growth in the GDP.

?The report also predicts that in 2024, non-life insurers will face difficulties due to rising claims expenses brought on by inflationary pressures. It is expected that insurers will modify their premium prices in order to offset the inflation-related decline in technical outcomes. Due to intense competition, AM Best believes it is unlikely that these improvements will be enough to entirely restore profitability.

AM Best is an international news publisher, data analytics provider, and credit rating firm with a focus on the insurance sector. The firm, which has its headquarters in the United States, conducts business in more than a hundred nations, with regional offices in Hong Kong, Amsterdam, Mexico City, London, Dubai, and Singapore.

China forecasts that it’ll contribute 17% of additional life insurance premiums worldwide over the next decade

The Swiss Re Institute (SRI) estimates that between 2025 and 2034, China alone will add $256 billion, or around 17% of the world's excess premiums. In the upcoming decade, advanced markets are expected to generate $900 billion, or 61% of additional premiums in absolute terms, while emerging markets will contribute an additional $578 billion, or 39%, according to SRI's new Sigma study, "Life Insurance in the Higher Rate Era: Asset-savvy is the new asset-light."

SRI projects that over the next ten years, customers will pay an extra $1.5 trillion for insurance savings premiums globally as more and more people buy life savings products that guarantee larger retirement incomes. Consequently, it is expected that by 2034, total premiums worldwide will reach $4 trillion. On the other hand, over the course of the low interest rate decade from 2010 to 2019, global premiums for life insurance rose by a mere $300 billion. The life insurance outlook for profitability and growth is shifting due to rising interest rates globally. Consumers find savings products appealing after ten years of low returns and weak demand.

Aon announces the acquisition of Global Insurance Brokers in India

The professional services company Aon plc (NYSE: AON) announced the acquisition of Global Insurance Brokers (GIB) in order to bolster its current broking and advising capabilities within the commercial risk, health, and reinsurance marketplaces. Following the completion of the transaction, Aon now owns all of GIB. It is now expected that later this year, following the conclusion of the National Company Law Tribunal merger process, GIB will formally combine with Aon India Insurance Brokers (AIIB). GIB will function independently as an Aon company in the interim.

Subject to customary approvals, Rishi Mehra, the head of Aon for India, would become the chairman of the GIB board. In close collaboration with Mehra, Jon Pipe, the CEO and principal officer of GIB and AIIB, will assist customers in making more informed decisions that will safeguard and expand their businesses. "Our two firms' combined extraordinary talent and breadth of capabilities will open up opportunities for our colleagues and increase our capacity to better meet our clients' expanding needs," Mehra stated. According to Pipe, "India offers significant opportunities for growth and innovation."

Tokio Marine Forecasts ￥1 Trillion 2024 Profit; ‘Drastic’ Growth Ahead

Tokio Marine Holdings estimates that the company will make ￥1 trillion in profit by 2024, expressed in Japanese yen. Even though the estimate, which stands at about $6.7 billion in US dollars, may not appear remarkable, it still represents a 40% increase over 2023.

This week, at a virtual media event and through investor documentation on the group’s website, executives from the worldwide insurance business based in Japan disclosed the estimate and a midterm strategy for the "drastic expansion" of value-creating potential. The co-head of Tokio Marine's global business, Brad Irick, made it clear early on that reporters from outside of Japan were welcome to attend the media event. According to Irick, the wide invitation was a reflection of the impact that profits from insurers outside of Japan and year-over-year increases in insurance premiums had on the overall outcome.

Almost half of the $6.7 billion profit estimate and more than 60% of the $4.7 billion (￥711.6 billion) recorded profit in 2023 actually come from the business unit profits of their international insurers, which include Tokio Marine HCC in North America, Philadelphia Insurance Companies, and Delphi Financial Group (which includes Safety National).

Higher premiums, additional fees, ‘Insurance Break' is getting costly for UAE motorists after rains

?Following a sharp increase in claims following the historic rains on April 16, insurers in the UAE have tightened their underwriting standards and procedures for renewing vehicle insurance policies. According to brokers around the nation, drivers who delay renewing their insurance policies beyond the grace period would have to pay far more in premiums, extra declarations, and inspection fees.

Following a storm in mid-April, the UAE had its heaviest rainfall in 75 years, which resulted in floods in numerous spots of the nation and damage to thousands of cars, homes, and businesses. The managing director of Badri Management Consultancy, Hatim Maskawala, claims that different insurers have provided different estimates of losses brought on by rain. In order to counter the impact, insurance companies have started raising premiums, particularly for drivers. In the UAE, a car insurance policy has a 13-month validity period rather than the standard 12-month contract, allowing drivers to renew their coverage one month early.

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