The number of companies in the mortgage reinsurance space has grown by five in the past year to reach a total of 42, with the market experiencing greater prominence because of the strong returns and diversification it offers, said Joe Monaghan of Aon Benfield. "While it's a very stable market, there are areas where innovation is occurring and the potential for growth is great, especially if market share can be taken from the bond markets, which also take on this risk," he said.
Just 15% of businesses' probable maximum loss for cybersecurity incidents is covered by insurance in the Europe, Middle East and Africa region, compared with 60% coverage for property and other physical assets, according to a survey by Aon Risk Solutions and the Ponemon Institute. Among respondents, 38% reported having faced cyberlosses in the previous 24 months, with the average loss at $3.3 million, the survey found.
Corporate risk managers must be proactive in determining a company's needs for terrorism risk insurance and identifying what form such coverage should take, according to a report from the Risk and Insurance Management Society. Lending agreements and other contracts might contain stipulations for terrorism risk coverage even if a company hasn't deemed stand-alone or another form of coverage to be necessary.
Student housing investment sales are starting to accelerate after a slow start at the beginning of the year, positioning 2017 to reach the record-breaking volumes of last year. "Most believe that fourth quarter closings will bring total investment sales activity to $8 billion or more for 2017," says Fred Pierce, president and CEO of Pierce Education Properties.
A measure to provide $36.5 billion in disaster-relief funding for hurricane and wildfire damage passed 353-69 in the House last week. The aid package includes $16 billion in debt relief for the National Flood Insurance Program, which has hit its borrowing cap of $30.4 billion.
Reps. Kyrsten Sinema, D-Ariz., and Tom Graves, R-Ga., introduced the Active Cyber Defense Certainty Act, also known as the hack back bill, in the House on Friday. The bill would allow hacking victims to destroy or steal back the information taken from them, but the victims would be required to notify the FBI's cybercrimes division before retaliating against cyberattackers.
Drones and artificial intelligence are changing the way we insure our homes, cars and businesses. With $14 billion in investment to date, insurtech is turning heads, and insurance will likely never be the same again. One characteristic that marks this period of business disruption: a level of partnership and co-operation between industry incumbents and tech startups. So what's next for insurance? Learn more.
Recent catastrophes didn't just damage property; insurance rates could be in danger as well. Recent natural catastrophes such as the hurricanes in the Caribbean and earthquakes in Mexico will have underwriters looking to increase rates across several lines of business in the near future. "Clearly there's a recognition that the market needs to see some correction," said Paul Kim, managing director and co-chief broking officer at Aon Risk Solutions in New York. However, only about one-third of insurance companies have reported their third-quarter catastrophe-loss estimates, so the potential amount of rate increases remains unclear. Read more.
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About Aon Real Estate
Aon’s Real Estate Practice has unmatched expertise in designing and placing competitively priced insurance solutions and our capabilities include a comprehensive range of solutions, including property, casualty, financial services, environmental, construction and additional areas of real estate related risk management. Our fact-based approach combined with market knowledge has helped us become the leading insurance broker. Aon represents more than 30 percent of the largest real estate owners, managers and developers and places more than $1 billion of real estate premiums annually.
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