Building Trust through Responsible AI in Claims: Championing a Voluntary Code of Conduct  August 11th 2023

Recovery on Maui could take years, officials say, as the death toll rises again

Officials say it could take years — or longer — to repair the damage from this week's wildfires that devastated parts of Maui, claimed dozens of lives and razed a historic town.

That acknowledgement came as the death toll on Maui was raised to at least 55 people. Hawaii Gov. Josh Green warned at a news conference that the death toll will rise, as rescuers reach parts of the island that had been inaccessible due to the three ongoing fires.

"We are seeing loss of life," Green said. "As you know, the number has been rising and we will continue to see loss of life." He said that the fires were the "greatest emergency we've seen in decades."

U.S. forecasters raise 2023 hurricane forecast

U.S. government forecasters on Thursday said they expect a more dangerous Atlantic storm season than previously projected, raising their Atlantic hurricane outlook due to high sea surface temperatures.

The U.S. National Oceanic and Atmospheric Administration (NOAA) forecast 14-21 named storms, with 6-11 potentially becoming hurricanes with winds of 74 miles per hour (119 kmh) or greater. Two to five of those hurricanes could become major events with sustained winds above 111 miles per hour (179 kmh), NOAA said.

In May, NOAA had predicted 12-17 named storms, 5-8 hurricanes and one to four major hurricanes. The raised outlook follows a similar projection by Colorado State University researchers.

An average Atlantic season has 14 named storms, seven hurricanes and three major hurricanes. The season lasts to the end of November.

Zurich Insurance Group unveils first-half results

Operating profit matches previous high

Results season is in full swing, with Zurich Insurance Group among the latest to outline its interim financials.

Lifting the lid on the numbers, Zurich noted: “Net income after tax attributable to shareholders (NIAS) increased 6% to US$2.5 billion compared with the prior-year period, mainly due to a more favourable net impact from capital gains and losses.

“NIAS also included US$0.1 billion of costs incurred related to the repurposing of some of Zurich’s own use real estate portfolio.”

Zurich described the company’s interim results as “strong,” with its operating profit matching the record-high BOP posted in the same span in 2022.

Commenting on Zurich’s financials, group chief executive Mario Greco said: “Zurich has made a strong start to the new financial cycle. We have high expectations for the group’s performance and we set targets accordingly. More importantly, we deliver.

“We’ve achieved a return on equity that’s among the highest in the industry, while minimising volatility, maintaining a strong balance sheet, and taking advantage of the growth opportunities available to us.

Allianz reveals financial results for half-year 2023

CEO reflects on an "agonizing period of inflation and polarization"

Commenting on the results, CEO of Allianz SE Oliver Bäte said the “excellent” figures reflected the strength of the insurer’s fundamentals as it capitalises on its global scale and diversified business mix to the advantage of customers and shareholders alike."

Bäte added that Allianz’s “solid growth” mirrors customers’ continued trust in the business to support them through an “agonising period of inflation and polarisation”.

The global insurance giant Allianz has today announced its Q2 and H1 operating results, and affirmed its 2023 operating profit target at €14.2 billion.

In Q2, the group saw its total business volume surge 5.9% to €39.6 billion while its operating profit increased 7.1% to €3.8 billion, which was largely attributed to strong performance in its property-casualty (P&C) and life/health segments and partially offset by a decrease in the asset under management (AuM)-driven revenues in its asset management segment.

For H1 2023, Allianz saw its total business volumes rise 4.8% to €85.6 billion while its operating profit increased 14.9% to €7.5 billion, again largely driven by its life/health and P&C business segments.

Among the financial highlights shared, Allianz revealed that the Q2 uptick in total business volume seen in its P&C segment was the result of higher prices and volumes while the growth of its life/health business was linked to strong single-premium volumes in the US. Internal growth was also strong for the quarter at 8.7%, driven by the P&C segment and supported by the life/health segment.

For the half-year period, internal growth was strong at 6.4%, driven by the P&C business segment.

Double digit growth for P&C insurance

5 ways Congress can revamp the NFIP, per the GAO

Although Risk Rating 2.0, the updated rate-setting method for the National Flood Insurance Program (NFIP), better aligns the program’s premiums with the flood risk of individual properties, it still fails to achieve actuarial sound rates, according to a report from the Government Accountability Office (GAO).

The NFIP has long been plagued by rate inadequacy, with a report from Poulton Associates, LLC and HazardHub finding that the program’s premiums fell 9% from 2014-2019, despite Congress mandating 5% annual increases.

As the program pays out more in claims than it collects in premiums, the Federal Emergency Management Agency is forced to borrow money from the Treasure Department to make up the difference.

According to the GAO report, FEMA has borrowed some $36.5 billion since 2005 to cover NFIP losses, and would have to use revenue from current and future policyholders to repay it. The debut is largely due to discounted premiums that FEMA has been statutorily required to provide, which in turn has the effect of charging future and current policyholders for previously incurred losses.

Community discounts were a major propeller of the rate decline, Craig Poulton, CEO of Poulton Associates previously told PropertyCasualty360.com.