Commercial lines generally positive says Marsh
The commercial insurance sector is largely positive according to the latest US market report from Marsh. It says that, barring unforeseen events, ample capacity and competition are expected to continue to put near term downward pressure on insurance rates in major classes of commercial property/casualty business. It warns though that macroeconomics globally could add pressure and also highlights recent earnings, senior management changes and re-underwriting at several companies need to be monitored.
US commercial property insurance rates declined on average between 5 and 10 per cent for non-catastrophe exposed risks and between 5 and 15 per cent for moderately catastrophe-exposed risks.
“With 2016 under way, the global insurance marketplace appears to be heading in the general direction of soft pricing, reflecting insurer capacity, competition, and relatively low catastrophe losses,” said Robert Bentley, president of Marsh’s US and Canada Division. “Now, however, is not the time to be complacent. Organizations need to stay abreast of the ever-changing marketplace and risk landscape, where new and emerging risks can quickly escalate if not properly managed.”
The report highlights the growing demand for cyber cover where rates increased 10-15 per cent in the first half of 2015 and are expected to grow in 2016.
More than half of Canadians have inadequate retirement funds
The majority of Canadians fear running out of money in retirement; 67 per cent according to a new poll by BMO Wealth Management. Fifty-nine per cent of respondents say that they miss or will miss their employment income from their working life. Two-thirds are also concerned about dealing with serious health issues. The survey reveals that many Canadians approaching retirement or already retired do not feel that their pension, critical illness insurance and other finances are as strong as they would like, although 55 per cent are optimistic about the life-stage.
Florida insurance agent arrested
An insurance agent has been arrested for allegedly taking insurance premiums for policies that were never purchased. The Florida Division of Insurance Fraud alleges that William David Rodeffer III collected $40,000 in premium payments from two clients.
According to a report from News4Jax.com one of the clients, who believed he had bought workers’ compensation insurance, made a claim on the non-existent policy and was forced to cover the $30,000 expenses when the lack of cover was discovered. The investigators say that Rodeffer had been an insurance agent in Georgia but was denied a license in Florida due to a criminal history. The Florida Division of Insurance Fraud says that he continued to operate without a license for three years.