AGP Executive Report

Motor Cover: India’s IRDAI will introduce a four-part car insurance structure and two-part cover for two-wheelers from December 15, separating liability, personal accident and damage protection to give customers clearer choices. Industry Deals: Amdocs is entering insurance technology with a $340 million deal to acquire EIS. CVS plans to split its insurance and healthcare services from its retail pharmacy business, with the separation expected in 2028. Reinsurance: Moody’s warns that new capacity in India could put downward pressure on prices, while Ageas Re says APAC pricing is softening faster than underlying risks are improving. Aon, meanwhile, is increasing its 2027 treaty co-insurance share to 35%. Climate Protection: The ECB’s Christine Lagarde called for a European public-private reinsurance scheme as extreme weather exposes gaps in catastrophe coverage; the UN has also launched a disaster insurance programme backed by Gallagher Re and Liberty Mutual.

Industry Moves: CVS Health is reportedly preparing to split its retail pharmacies from its insurance and pharmacy-benefit businesses, unwinding part of its 2018 Aetna deal amid scrutiny of pharmacy benefit managers. Pandemic Protection: Aon and Munich Re launched reinsurance cover for pandemic-related business interruption without physical damage, targeting hospitality firms in Indonesia and the Philippines. Trade Credit: The value of global trade protected by credit insurance rose to €9.58 trillion in 2025, though its estimated share of world trade slipped to 14% as trade outpaced GDP growth. Catastrophe Losses: PERILS put insured losses from severe storms across Australia’s east coast at A$1.62 billion, up from its previous estimate. Insurer Results: GIC Re’s half-year profit fell 5.2% to $481.5 million despite higher premiums, while specialty insurer IGI reported a 16.4% drop in third-quarter profit.

Banking Safety Net: Serbia has opened insolvency proceedings against Alta Banka, with insured deposits of up to €50,000 set to be paid through state-owned Banka Poštanska štedionica. Payouts must begin within seven working days. Global Market Reach: The MGAA has opened membership to eligible insurers, MGAs and suppliers outside the UK and Ireland; its members already underwrite more than £18.5bn in annual premiums. Policyholder Returns: Northwestern Mutual plans a record $10.4bn in dividends for 2027, up from $9.2bn this year. Deposit Protection: South Korea’s KDIC is considering extending deposit insurance to defined-benefit pension reserves and large temporary deposits. Industry Moves: InsuranceDekho and RenewBuy have united in a reported US$1bn merger, while Gjensidige’s Baltic operations have been merged into Ergo; existing policies remain unchanged. Earnings: Bajaj Finserv’s quarterly net profit rose 25% to ₹5,952 crore, though its general insurance subsidiary’s profit fell 19% to ₹420 crore.

Health Coverage: ACA marketplace premiums are set to rise an average 13% in 2027, with 11 insurers exiting as enhanced subsidies expire, putting affordability and plan choice under pressure. Cyber Risk: Japanese nonlife insurers report a surge in cyber coverage inquiries after high-profile attacks and data breaches, including from small businesses. Florida Market: Infinity Auto will refund more than $46 million in excess profits to policyholders, while Citizens Property Insurance reports a record-low 217,000 policies as customers move to other insurers. Industry Moves: Arch Insurance is expanding in automotive finance and insurance through its planned acquisition of Premier Dealer Services; Marsh has agreed to acquire marine specialist Triton Agency. Company Results: EverQuote’s third-quarter revenue rose 25% to $218.1 million, while life-insurance technology firm Ethos reported 151% growth to $235.2 million.

Insurer Earnings: China’s stock-market decline pushed China Life, PICC and New China Life into third-quarter losses; Ping An and China Pacific stayed profitable, but earnings fell sharply. Health Coverage: ACA marketplace premiums are set to rise again in 2027, with benchmark rates up 13% on average nationally and Georgia rates climbing 11% to 29%, raising fears more consumers will drop coverage or choose high-deductible plans. Business Risk: Aon says UK companies are facing overlapping supply-chain, business-interruption and cyber losses, yet few have quantified their exposure or built formal risk plans. Property Claims: UK subsidence payouts averaged a record £20,000, while home and business property claims averaged £10,000 as repair costs and severe weather drove up bills. Autonomous Vehicles: WeRide has partnered with Allianz and Ping An to develop insurance for driverless fleets, covering motor, product liability, privacy and cyber risks. Captive Insurance: Marsh plans to expand into captive management in Bahrain, citing demand for more tailored risk-financing options.

Health Coverage: ACA open enrollment has begun, with benchmark premiums set to rise an average 13% and some shoppers facing fewer plans and less financial help. Singapore saw a 72% jump in people dropping optional private health insurance riders as premiums climbed. Insurer Competition: Fitch sees limited near-term credit risk from AI, but warns retail insurers face more disruption as technology firms target consumers and established distribution models. Cyber Risk: Recent attacks on financial institutions have insurers worried about claims; AU Small Finance Bank has ₹100 crore in cyber cover, but has not yet notified its insurer about a potential data breach. Climate Exposure: Flood-damaged homeowners in Queensland say cover is becoming unaffordable or unavailable, with one insurer declining renewals after flood claims. South Korea’s Gyeonggi climate insurance paid out 4.2 times more for heat-related claims in six months than in the previous full year. Lending Outlook: Weak rural incomes and drought threaten NBFC loan quality, while Nomura’s bear case assumes insurance fee income could halve from FY28. Public Coverage: India’s health scheme for people aged 70 and older now covers 60 million citizens and has authorised 2.35 million hospital admissions.

Health Coverage: ACA enrollment for 2027 opens Nov. 1, with higher premiums, tougher identity checks and possible enrollment delays ahead. The end of enhanced subsidies is expected to push more people out of coverage. Insurer Results: Nigeria’s AIICO Insurance lifted nine-month pre-tax profit 27.3% to N19.42 billion, helped by stronger insurance revenue and investment income, even as the NGX Insurance Index fell 5.52% in October. Reinsurance Deals: Willis Re completed its acquisition of BMS Re’s U.S. subsidiaries, expanding its reinsurance business. Climate Risk: Insurers in Asia face mounting pressure from disasters and a widening protection gap; recent storms caused more than $20 billion in economic losses, while only an estimated 5–7% of global assets are insured against natural hazards.

Health Coverage: ACA marketplace enrollment opens Nov. 1 as 2027 premiums climb across the Philadelphia region: average rates are up about 16% in Pennsylvania, 20% in New Jersey and 17% for Delaware’s Highmark plans. Home Insurance: Midwest homeowners face tighter underwriting and non-renewals as U.S. residential roof claims reached about $31 billion in 2024, driven largely by wind and hail. Climate & Reinsurance: Insurers and reinsurers are under pressure to close Asia’s widening catastrophe protection gap, while India’s data-centre boom adds concentrated property and business-interruption risks. Insurer Results: Nigeria’s Mutual Benefits posted 7.1% insurance revenue growth for nine months, but pretax profit fell 9.1% as claims costs rose. India’s Chola MS grew first-half premiums 7.1%, though floods and other catastrophe losses contributed to a second-quarter pretax loss.

Health Coverage: U.S. open enrollment starts Nov. 1 as 2027 marketplace premiums climb, with New Jersey plans up 20% and Michigan rates rising 14%, intensifying affordability concerns. Reinsurance Results: GIC Re’s first-half profit fell 5.2% to ₹4,377.66 crore despite premium income rising 12.3% to ₹24,703.57 crore; its underwriting loss widened to ₹1,709.06 crore. Bank-Insurance Rules: Indian banks warn proposed IRDAI commission caps could hit smaller lenders hardest, seeking more time to adjust distribution models. Deals and Risk Transfer: RiverStone completed $1.6 billion in loss portfolio transfers with QBE, while Guidewire agreed to acquire UK insurance software firm Hyperexponential in a deal worth up to $2.1 billion. Cyber Cover: Costly attacks are testing policy limits, while insurers increasingly expect schools and other customers to demonstrate stronger security controls.

Data Privacy: GM will pay $220 million to settle claims it shared drivers’ location and behavior data with brokers, who passed it to insurers for rate-setting; Virginia will receive $6.54 million, and GM must obtain clear consent before sharing such data. Property Insurance: More than 824,000 Florida homeowners are eligible for rate cuts of up to 12.1%, with further reductions expected. But climate losses remain a major pressure: Canadian storms, floods and wildfires caused $3.7 billion in insured damage this summer, while a U.S. watchdog says nearly 90% of properties at high flood risk lack coverage. Health Coverage: Open enrollment begins as 2027 premiums rise; Michigan’s individual-market rates are up an average 14.2%, and small-business rates 9.6%. Employers are also scaling back coverage for costly weight-loss drugs. Claims Standards: New Washington rules require insurers to complete investigations within 30 days, provide updates every 30 days and explain claim reductions or denials in writing. Insurance Distribution: India’s proposed commission caps have triggered calls from banks, brokers and agents for a three-to-five-year transition, with debate over whether savings will reach policyholders.

Consumer Protection: General Motors will pay $220 million to settle claims from 36 states that it shared drivers’ data with insurers without consent, potentially affecting premiums. Insurer Results: Gallagher’s nine-month revenue rose to $12.6 billion from $10.2 billion a year earlier; Ryan Specialty reported third-quarter net income up 41% to $88 million, while Hamilton’s underwriting income fell sharply in the quarter despite stronger nine-month results. Regulation: India’s standalone health insurers want mandatory policies excluded from proposed expense limits, warning a common framework could disadvantage their business model. Emerging Risks: Tokio Marine HCC and Adrian Flux launched household cover for humanoid robots, including protection against theft, damage and liability. Deal Protection: Aon expanded its transaction insurance product to the UK and European Economic Area, adding 100 days of interim breach cover.

Data Privacy: General Motors will pay $220 million to settle claims it shared drivers’ data with brokers and insurers without proper consent; the deal requires stronger safeguards and express permission. Health Coverage: U.S. ACA premiums are projected to rise a median 15% for 2027 as insurers exit some marketplaces and enhanced subsidies have expired, adding pressure ahead of open enrollment. Insurer Results: Ping An’s nine-month operating earnings climbed 8.3% to RMB125.9 billion, but net profit fell 27.3% amid market volatility. AIA Group reported a 5% drop in third-quarter new business value to $1.42 billion. Marine Market: Global marine premiums grew 5.5% to $42.6 billion in 2025, while competition continued to weigh on rates. Disaster Claims: Jamaica’s insurers say they have settled 91.1% of Hurricane Melissa property and motor claims, paying out $59.4 billion; 915 claims remain outstanding.

Agricultural Cover: Aon and AI firm SAGE launched field-level crop insurance for corn and soybean growers in 15 states for 2027, aiming to tailor premiums more closely to farm-specific risks. Digital Distribution: Adviser platform Trail introduced a comparison tool for nine life and health insurers, with CRM integration to speed up quoting. Market Moves: Eurobank completed its €813 million purchase of the remaining 80% of Greek life insurer Eurolife, taking full ownership; it expects to complete a separate sale of a 45% stake in its Cypriot non-life insurer to Fairfax by year-end. Insurer Results: CCC Intelligent Solutions reported third-quarter revenue up 10.1% to $294.1 million, while Donegal Group’s earned premiums fell 3% and its combined ratio edged up to 96.5%. Policy Costs: France is preparing a 0.8% levy on home and motor insurance from January 2027 to fund riot-damage claims, subject to approval. Home Insurance: A California partnership will offer resilience loans to homeowners seeking wildfire protections that may help them qualify for cover or lower premiums.

Health Coverage: US senators have opened an inquiry into 10 insurers’ role in terminating 760,000 ACA enrollees, as rising premiums add pressure on households. Catastrophe Risk: New Mexico lawmakers plan to require insurers to explain wildfire risk models and offer discounts for mitigation. In New Zealand, Tower Insurance’s CEO is urging new ways to fund climate-driven home relocations as premiums climb. Reinsurance & Capital: US and UK regulators are weighing tougher capital rules for some reinsurance deals. Fitch says Indonesia’s new equity and solvency requirements could spur capital raises and consolidation; 70% of rated insurers fall short of the 2028 threshold. Deals: Guidewire agreed to buy UK insurtech hyperexponential for up to $2.1 billion. Enstar will assume $2.3 billion of Markel’s legacy reserves under a $2.4 billion reinsurance deal. Earnings & Innovation: Aon’s third-quarter net income rose 4% and revenue increased 3%. AI insurance broker startup i23 raised $5.5 million in seed funding.

Insurer Results: Qatar Insurance reported nine-month net profit of QR562 million as revenue rose 14% to QR7.4 billion, despite higher conflict-related claims. Consumer Protection: Australia’s NRMA Insurance must refund 41,564 motorists about A$12.17 million and pay A$479,500 in penalties after pricing and data-control failures led to overcharges. Deals and Investment: Guidewire agreed to buy UK insurance AI firm Hyperexponential in a deal worth up to $2.1 billion, while broker investor MBP took a minority stake in Welsh agricultural broker Caleb Roberts, which has £32 million in gross written premiums. Market Outlook: Global commercial insurance rates fell 5% in the third quarter, as competition and softer pricing spread across specialty lines. Insurance Technology: AI brokerage start-up i23 raised $5.5 million to automate routine work and support brokers.

Qatar Insurance: QIC reported 14% growth in nine-month insurance revenue to QR7.4bn. Conflict-related claims weighed on underwriting and profit, while premium growth helped offset the pressure. AI and Underwriting: Guidewire agreed to acquire UK-based Hyperexponential for up to $2.1bn, adding AI tools for pricing complex commercial risks. Sun Life Settlement: Ontario’s Superior Court approved a $213.5m settlement over the administration of universal life policies, covering about 70,000 eligible current and former policyholders. Distribution Reform: Banks and small finance banks are pressing India’s IRDAI for time to adjust to proposed insurance commission changes, which could affect fee income; feedback is due October 31. Market Conditions: Global commercial insurance rates fell 5% in the third quarter, while QIC cited a softening reinsurance market. Capital and Returns: Slide Insurance secured a $1.07bn credit facility and declared a $1.50-per-share special dividend alongside its quarterly payout. Consumer Rates: Georgia officials say 41 insurers have reported rate decreases, representing an estimated $500m in savings for 3.6 million policyholders.