The Week in a Minute, October 28, 2011

  • The 2011 march of catastrophes continues:
    • Thailand’s Office of Insurance Commission indicates flood claims filed so far exceed $3B. Guy Carpenter updates; has a thorough report.
    • Earthquake in eastern Turkey (Van) claims hundreds of lives. AIR puts insured losses between $100M and $170M. Eqecat’s range: $100M to $200M.
    • Fortunately, Rina shrank down to Tropical Storm status off the Yucatan and as I write this (11:40 Thursday) seems unlikely to restrengthen.
  • AIR updates its U.S. terrorism model with lower frequencies and severities, reflecting, in part, “the reduced capability for large-scale coordinated attacks in the United States from al-Qaida and its allies.”
  • David Sandberg becomes AAA president today.
  • Actuarial Standards Board approved revisions to two casualty-related standards:
    • ASOP 20 (Discounting of P/C Unpaid Claim Estimates)
    • ASOP 38 (Using Model’s Outside One’s Expertise)
  • Interview with a pet insurance actuary.

Update: A couple things I forgot to add:

  • European uber-quasi-regulator EIOPA gave good report cards to regulators in Bermuda, Japan and Switzerland. It’s a big step to getting those countries named compliant with Solvency II standards, which will make it easier for them to do business in Europe.
  • Earnings season going full force. Most insurers getting dinged by Q3 catastrophes, which you can see in the Q3 Link-o-rama. Otherwise notable: Ace lost $790M on investments, many tied to its variable annuity portfolio. On the other side, Fairfax posted a $1B+ gain on bonds. (Fairfax is not big enough to make the roster on the Link-o-rama, but it’s a notable result anyway.)

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