Alan Gray Selected to Provide Run-Off Administration Services for ECRA and CMC Reinsurance Pools
Weekly Articles
Insurance Market
How Inflation Is Impacting Medical Malpractice Claims
The Doctors Company 2025 study on inflation and medical malpractice claims shows both economic and social inflation have added $4B in insured losses over the past decade, up $1.6B from 2023 estimates. Nuclear verdicts averaged $56M in 2024, with $2M+ claims rising tenfold since 1990. Post-pandemic, high-dollar claims surged, and third-party litigation funding could add $13–$25B in costs over five years, driving premium hikes and coverage pressure for physicians.
Lincoln International has entered into a definitive agreement to acquire MarshBerry, a firm with over 40 years in advisory services for insurance brokerage, distribution, and wealth management. The deal will enhance Lincoln’s financial services practice, broaden its suite of offerings including investment banking and market intelligence, and is subject to regulatory approval.
PWC – Global Insurance Run-off Survey 2025
The PwC Global Insurance Run-off Survey 2025 highlights how legacy insurance has become a strategic part of the global insurance ecosystem. Appetite for deals remains strong, though disciplined pricing and regulatory pressures shape activity. Private equity interest, capital demand, and technology adoption are driving growth, while effective claims management underpins diverse liability portfolios.
SageSure Agrees to Acquire Olympus MGA
SageSure has agreed to acquire Olympus MGA (and its parent Gemini Financial) to expand its presence in the mass-affluent homeowners segment in Florida. The deal will add about 130,000 in-force policies, ~$700 million in gross written premium and ~1,500 independent agents in Florida to SageSure’s book, with the transaction expected to close in Q1 2026, pending regulatory approvals.
Sedgwick: European Product Recalls Surged in First Half of 2025
Product recall incidents in Europe and the UK have increased by 10.2% in the first half of 2025 compared to the same period last year, with 7,729 total events across medical devices, pharmaceuticals, food & beverage, automotive, and consumer products. Medical device recalls led the surge (which is driven heavily by software issues) and regulatory updates in the UK and EU are tightening incident reporting and surveillance requirements.
Reinsurance Market
Accelerant Announces Partnership With AF Specialty to Expand Risk Exchange Capacity
Accelerant has formed a partnership with AF Specialty (part of AF Group) to boost the capital available through its Risk Exchange for specialty underwriters. AF Specialty adds its “A” (Excellent) AM Best rating and broad underwriting authority, increasing Accelerant’s network to over 95 risk capital partners and enhancing speed, precision, and scale for its marketplace.
Ariel Re given ‘in principle’ approval from Lloyd’s of London to establish Syndicate 2006 - ArielRe
Ariel Re has received “in principle” approval from Lloyd’s of London to set up a second syndicate, number 2006, which will start trading from January 1, 2026, with quoting beginning December 1, 2025. Syndicate 2006 will write a diversified book (covering Property Catastrophe; Other Property; Marine & Specialty; Cyber; and Clean Energy via “Ariel Green”), while the existing Syndicate 1910 will focus exclusively on Property Catastrophe reinsurance.
Earnings protection & legacy key themes at RVS 2025: Hochberg, Guy Carpenter
At RVS 2025, Guy Carpenter’s Ed Hochberg highlighted earnings protection and legacy transfers as dominant themes. Buyers are pushing for earnings stability solutions, with appetite for frequency risks in today’s better-priced market. Legacy deals face bid-ask spreads and limited players but remain capital-efficient. Looking to 1/1 renewals, he expects orderly property softening, casualty stability, and disciplined attachment points. Reinsurers face opportunities in tailored frequency products but ongoing challenges in pricing uncertainty, competition, and capital efficiency.
Growing uncertainties require strong and reliable reinsurance partners | Munich Re
Munich Re emphasizes that rising climate-, geopolitical-, and macroeconomic risks are making strong, dependable reinsurance partners more essential than ever. They report growing demand in natural catastrophe, cyber and supply chain exposures, and say their robust capital base and diversified portfolio leave them well placed to offer risk-adequate pricing, broaden insurability (including for emerging perils), and support clients through turbulent renewals.
Hannover Re expects that for the 1 January 2026 treaty renewals in property & casualty reinsurance, overall prices will remain stable or decline slightly while terms, conditions, and retentions hold at reasonably good levels. The company says demand for reinsurance protection is strong (especially in catastrophe, structured, and cyber cover) and that its solid capitalisation and risk-disciplined underwriting will allow it to grow profitably even in a competitive market.
Howden Re Partners with Reask to Advance European Climate Risk and Subsidence Modelling
Howden Re has formed a partnership with Reask to improve modelling of climate-driven risks and subsidence in the UK and France, combining Reask’s advanced climate models with Howden Re’s in-house emerging peril models and local meteorological data. The enhanced modelling will help insurers better estimate current and future loss impacts, support parametric and aggregate reinsurance solutions, and improve resilience against volatile weather and subsidence perils.
Lloyd's 2025 Half Year Report
Lloyd’s first half 2025 results show that gross written premiums rose by 6.2% to £32.5 billion, but underwriting profit dropped to £1,505 million due to major losses like the California wildfires and Ukraine conflict bringing the combined ratio up to 92.5%. The balance sheet remains strong with total capital, reserves and subordinated debt of about £43.8 billion and solvency coverage ratios of ~206% (market-wide) and 468% (central), with credit ratings maintained at A+ and AA-.
MultiStrat Continues to Execute on Growth Plan With Capital Raise
MultiStrat has secured a new capital investment from a large institutional asset manager (with over USD $100 billion in AUM) to underwrite and manage liability in a casualty-focused reinsurance vehicle. The move reinforces MultiStrat’s strategy of creating innovative risk-transfer solutions and partnering with private capital to expand its presence in the casualty reinsurance sector.
Lockton Re’s new report Cyber Insurance 2030: Charting a Course for Growth expects the global cyber insurance market to more than double by 2030 if certain conditions are met. Key enablers identified include investing in higher quality data, more granular risk modelling, and flexible product offerings especially for small and mid-sized enterprises where current insurance take-up is low.
Shanghai International Reinsurance Exchange reports a flying start to life
The Shanghai International Reinsurance Exchange reported nearly ¥4.4 billion in insurance premiums traded in its first eight months, with inward reinsurance (accepting risk from other insurers) amounting to about ¥9.5 billion and outward reinsurance (ceding risk) at ¥94.6 billion. The exchange, officially launched in the Lin-gang FTZ in October, has registered 118 institutions (90 domestic, rest overseas), and offers trading seats enabling foreign reinsurers to serve Chinese clients without full local regulatory approval, boosting cross-border efficiency.
Special Report: Global Reinsurers’ ROE Decreases but Remains High
Global reinsurers saw their return on equity fall in 2024, but it still remained well above their cost of equity. Operating margins were stable even as reserve discounting and taxation pressures reduced the average ROE.
Commercial Lines
Allianz X Announces Investment in Coterie | Coterie Insurance
Allianz X has made a strategic investment in Coterie Insurance, a U.S. MGA focused on property and casualty coverage for small and mid-sized businesses. The capital will accelerate Coterie’s growth and support its technology-driven underwriting platform, which enables policies to be bound within 24 hours through AI and digital distribution.
Ascendex Underwriters Sets a New Standard in Specialty Underwriting
Ascendex Underwriters is a new managing general underwriter (MGU) backed by Altamont Capital Partners focused on excess & surplus (E&S) and specialty lines. The firm aims to combine underwriting discipline, modern technology, and an ownership-aligned model to streamline specialty programs and enable growth.
Fitch Ratings: U.S. E&S Growth Slows but Remains Strong
U.S. Excess and Surplus (E&S) lines saw direct written premiums grow by about 11% in 2024, down from 15% in 2023 but still showing strong expansion as E&S now represents about 9% of the property and casualty market. The sector’s combined ratio was about 88% in 2024, well ahead of the broader property and casualty average, highlighting its continued profitability even as growth moderates.
Globalisation slowdown heralds "brave new world" for marine insurance, warns IUMI President | IUMI
IUMI President Frédéric Denèfle warned that the era of frictionless globalization is ending, with geopolitical conflicts, supply-chain shifts, regionalization, and trade tensions reshaping marine insurance risks and opportunities. He noted that marine insurers will need to adapt to costlier routes, new infrastructure, rising goods prices, and greater reliance on technology in order to thrive in this emerging fragmented trade environment.
Laplace Alternative Risk Solutions, a new MGU backed by MISSION, has launched structured insurance programs aimed at large corporations with complex or hard-to-place risk exposures. The programs combine self-funding mechanisms with excess-of-loss protection, offering limits starting at USD 10 million per occurrence and in aggregate across lines such as property, liability, and D&O, with U.S. availability and plans for broader expansion.
Umbrella, excess liability lead rate hikes as commercial market splits in Q3 – CAC Group
In Q3 2025, the commercial insurance market was mixed: auto liability rose 5–15%, general liability 5–10%, and umbrella/excess up 10–20% amid social inflation and litigation pressures. Cyber and property softened with strong capacity, while D&O and workers’ comp stayed stable. Buyers benefit selectively, but liability remains challenging.
U.S. commercial insurance rates ease to 3.8% increase - WTW
U.S. commercial insurance rates increased 3.8 percent in Q2 2025 compared to the prior year, easing from growth of 5.3 percent in Q1 and 5.6 percent in Q4 2024. Most lines saw slower price growth or small declines, including workers compensation, D&O liability, cyber, and commercial property, while excess liability and commercial auto continued to post stronger increases.
Emerging Risks & Technologies
AI to revolutionise claims handling, but human expertise remains key: PwC’s Cook
At RVS 2025, PwC’s Michael Cook said AI will transform claims handling, shifting resource-heavy manual work toward automation. By reading reports and documents, AI can reduce repetitive tasks, freeing staff for complex cases and insights. He stressed AI won’t replace people but optimize their use, requiring clear ROI-driven strategies integrated with broader business goals.
AmTrust Announces Key Leadership Appointments to its Excess & Surplus (E&S) Division
AmTrust has created a new business group called E&S Premier within its Excess & Surplus division to focus on complex casualty risks distributed through wholesale brokers. Curt Fletcher will serve as Senior Vice President and lead the new group bringing over thirty years of experience building E&S platforms and underwriting operations. Matt Thomas has been appointed Vice President of E&S Premier, bringing strong underwriting and analytical experience from a long tenure at Admiral Insurance.
Applied Systems Acquires Cytora
Applied Systems has acquired Cytora to integrate its AI-driven risk digitization platform into Applied’s suite of insurance workflow tools, aiming to automate and streamline critical processes across the policy lifecycle. The merger is expected to reduce costs, speed up time-to-quote from weeks to hours, and enhance connectivity and productivity for carriers, brokerages and MGAs globally.
Google, Meta, OpenAI Face FTC Inquiry on Chatbot Impact on Kids
The U.S. Federal Trade Commission has ordered Google, OpenAI, Meta, and other AI-chatbot makers to provide information about how they measure, test, and restrict usage of their chatbots by children and teens. The move follows concerns including a lawsuit claiming OpenAI’s ChatGPT fostered isolation in a teenager, highlighting growing scrutiny over youth safety and AI’s psychological impacts.
Innovations and evolution main topics for PwC at RVS ‘25
At RVS 2025, PwC’s Jim Bichard said industry discussions have shifted from pricing to broader evolution. With M&A and legacy deals rising, he stressed re/insurers must adapt to rapidly changing risks—like energy transition and cyber threats—by insuring “value in motion.” Yet, most are still modernizing existing systems rather than anticipating future needs.
Insurance Banana Skins 2025 - PwC UK
The Insurance Banana Skins 2025 report by PwC and the Centre for the Study of Financial Innovation (CSFI) reveals that insurers view cybercrime as their greatest current risk, followed by increasing concern over artificial intelligence, broader technological disruption, macro-economic uncertainty, and climate change. Emerging challenges include adapting to fast-changing regulation, geopolitical instability, shifting social and demographic trends, and evolving consumer expectations that could upend traditional risk-modelling frameworks.
MAPFRE has joined Blue Marble as its sixth owner to help expand insurance protection for climate-vulnerable communities, especially in emerging markets. Blue Marble uses parametric insurance and partnerships with local insurers and development agencies to offer cover for underserved groups such as smallholder farmers, workers, and SMEs in Africa, Asia, and Latin America.
Pen Underwriting expands SME cyber coverage to simplify and enhance policyholder protection
Pen Underwriting has rolled out six major enhancements to its UK SME cyber policy that include doubling the restoration period to a full year, removing sub-limits for hardware replacement and security upgrades, adding "pay on behalf" language, and covering voluntary/regulatory shutdowns at full limit. These changes are aimed at reducing financial burdens during cyber extortion incidents and better reflecting the complexities and durations of modern cyber risk.
We need to focus on actively selling cyber insurance, says Munich Re’s Golling
At RVS 2025, Munich Re’s Stefan Golling called for the industry to expand and actively sell cyber insurance, framing competitors as allies against systemic risk. He urged growth from $16B today to $30B by 2030, emphasizing not just financial cover but bundled services—education, risk assessment, and continuous threat monitoring—to strengthen client resilience.
Willis launches Global Risk Engineering team - WTW
Willis has formed a Global Risk Engineering team under its Global Risk & Analytics business to enhance specialization through the use of proprietary data, advanced analytics, and tech-enabled solutions. The team includes nearly 200 risk engineers working across 30 countries and will deliver both single-site and portfolio-level assessments with the goal of improving client resilience and reducing their total cost of risk.
Litigation & Mass Torts
Anthropic Agrees to Pay $1.5 Billion to Settle Authors’ Copyright Class Action
Anthropic agreed to a $1.5B settlement with authors who alleged it used pirated books to train its AI, Claude, marking the largest copyright recovery in history and the first major AI-era deal. The company will delete millions of saved books but admitted no liability. The outcome leaves broader fair-use questions unresolved as similar lawsuits continue against OpenAI, Meta, and Microsoft.
DOJ Drops Defense of Ban on Employee ‘Noncompete’ Agreements
The Trump administration dropped legal appeals defending the FTC’s 2024 rule banning worker noncompete agreements, leaving lower-court rulings striking it down intact. Republicans argue the FTC lacks authority for broad bans, while critics say noncompetes suppress wages and mobility. Over 20% of U.S. workers are subject to such agreements.
Google Sued by Advertising Exchange Over Monopoly Violations
An advertising exchange called PubMatic has sued Google, accusing it of illegally monopolizing key segments of the ad tech market including ad exchanges and ad servers, and seeking billions in damages. The case follows a related ruling by a federal judge that found Google had already monopolized those markets and raises the possibility of structural remedies.
Independent Medical Examiners: The Secret Advantage in a Workers’ Comp Claim
Independent medical exams (IMEs) are increasingly valuable in workers’ compensation claims to verify injured workers’ symptoms and deter fraud when treating provider reports seem inconsistent. Claims managers are using IMEs alongside robust provider networks, diagnostic verification, and surveillance to reduce inflated claims costs and improve defensibility.
Inflation Added $4B to Medical Malpractice Losses, Study Finds
A new study shows that inflation added nearly $4 billion to medical malpractice losses between 2021 and 2023, with higher claims severity pushing more cases above the $1 million threshold. The findings highlight how social inflation, nuclear verdicts, and broader economic pressures are straining liability insurers and driving up malpractice costs.
Uber Sued by DOJ Over Passenger Disability Discrimination
The U.S. Justice Department has sued Uber for allegedly violating the Americans With Disabilities Act by refusing service to riders who travel with service animals or use stowable wheelchairs. Uber disputes the claims and says it has policies against denial, including driver agreements and penalizing confirmed violations.
People Moves
Allianz Partners appoints Okan Özdemir as its new Chief Officer for Health
Okan Özdemir has been named Chief Officer for Health at Allianz Partners, effective September 1, 2025, and joins the company’s Board as a full member. He succeeds Ida Luka-Lognoné and will report directly to CEO Tomas Kunzmann, bringing over 24 years of experience including having served as Chief Health Officer and Executive Board Member at Allianz Türkiye and leading significant digital transformation efforts.
AM Specialty Promotes Olivia Barder as Group Chief Operating Officer
Olivia Barder has been promoted to Group Chief Operating Officer at AM Specialty, where she will lead global operations and ensure alignment across departments to support the company’s long-term strategic goals. Barder has been with AM Specialty since 2017, and her experience includes directing operations, strengthening governance and risk management, and overseeing cross-functional teams such as data analytics, marketing, distribution, administration, and software.
AXA XL Announces Donnacha Smyth as New Global Chief Underwriting Officer, Casualty
AXA XL has appointed Donnacha Smyth as its new Global Chief Underwriting Officer for Casualty, effective November 3, 2025. He will relocate to Ireland in 2026 and until then will continue leading Casualty in the Americas region, where he has been overseeing multiple lines including primary risk management, excess risk, and multinational group captives.
HDI Global appoints new Head of Engineering Underwriting
HDI Global has named Bob van Alphen as Head of Engineering Underwriting, where he will oversee teams across Germany, the UK, France, Spain, Portugal, and South Africa. Reporting to the Global Head of Engineering, he will guide underwriting strategy and strengthen the company’s position in the commercial engineering insurance market.
Michael G. Bungert, a veteran in the (re)insurance sector, has been appointed to the Board of Directors of Ryan Specialty and will serve on its Compensation and Governance Committee as of September 3, 2025. Previously Chairman of Aon Re Global (retiring in 2024) and CEO of Aon Re since 1998, his long career began in 1977 in underwriting and includes roles at Continental Casualty, CNA Re, and a reinsurance intermediary.
Alan Gray was established in 1988 as a claims and audit advisory firm, and over the years has built a reputation as a cost-effective, reliable, and trusted resource to those involved in the management of risk.
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