combined insurance group

Willis.com Media Room
Willis.com Media Room

• Willis Survey: Financial Lines Insurance Increasingly Important for Companies’ Protection
  

  Willis Survey: Financial Lines Insurance Increasingly Important for Companies’ Protection

  London, UK, December 18, 2008 – The majority of attendees at a recent Financial Institutions seminar hosted by Willis Group Holdings (NYSE: WSH), the global insurance broker, believe that financial lines insurance will play a more prominent role in their companies’ protection in the future.

  Of the 40 delegates surveyed by Willis’ Financial and Executive Risks (FINEX) division at the quarterly event, 66 percent said such coverage would become more important.

  The seminar, held at The Willis Building on Lime Street in London, was attended by company secretaries, finance directors, risk managers and insurance buyers from 40 financial institutions. The breakfast briefing covered topics such as the likelihood of increased litigation in the new financial environment, and a review of trends for Professional Indemnity, Directors and Officers Liability and Crime insurance covers for financial institutions.

  Commenting on the findings of the survey, Duncan Holmes, Executive Director of FINEX and co-head of the Willis’ Financial Institutions team, said, "It is not surprising that in the current climate, the delegates are focused on protecting their firms from the heightened operational risks they face. History has shown that in economic downturns, both the incidence of fraud and frequency of liability claims against financial services companies increases. We believe that we will start to see an even greater demand for financial lines insurance from these institutions, and that the insurance market in 2009 will have the cover available to meet our clients’ needs."

  Other survey findings included:

  • Only 22 percent of respondents are looking for increased limits of indemnity as a result of the changing economic environment;
  • More than half of the companies surveyed are expecting financial lines premium increases at the next renewal;
  • Only two companies present would not consider changing their insurers at the next renewal, while 32 percent said that they may look to change insurers;
  • One-third of respondents believe that underwriting capacity will be scarcer in 2009;
  • When asked whether recent litigation was increasing the level of risk for respondents’ companies, a surprising 73 percent of attendees felt that recent litigation was not an indicator of future actions.

  Willis Group Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 20,000 Associates serving clients in some 190 countries. Additional information on Willis may be found at www.willis.com.

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• Global Economic Crisis Hits Clubs’ Reserves – Willis Marine Protection & Indemnity Market Review 2008/09
  

  Global Economic Crisis Hits Clubs’ Reserves –
  Willis Marine Protection & Indemnity Market Review 2008/09

  London, UK, December 17, 2008 – The most significant factor in the run up to Marine Protection & Indemnity (P&I) renewals this February is the impact the global economic crisis has had on P&I Club reserves and will continue to have on future investment income results, according to a new report from Willis Group Holdings (NYSE: WSH), the global insurance broker.

  The Willis Protection & Indemnity Market Review 2008/09 observes that no P&I Club would appear to be immune from the impact of the global economic crisis and uncertainty is everywhere. Five of the weaker Clubs have already been forced, directly or indirectly, by the meltdown in the equity markets to make unbudgeted supplementary calls totalling well in excess of US$400 million.

  The report notes the possibility that there may be further isolated examples of Clubs reviewing whether additional supplementary calls will be required. The economic position of the world financial markets is unprecedented, the report said, but Willis anticipates that the stronger Clubs will be able to weather the storm without resorting to the ultimate recourse of unbudgeted calls. Despite the choppy economic seas, Willis does not expect similar forced and unplanned recapitalizations to spread to the entire market.

  Other key observations of the Willis P&I Market Review are:

  • Despite the record underwriting deficit of the market in 2007/08, the deficit was almost entirely offset by investment income. This reliance on investment income has become all too painfully clear following the global economic problems in the current year.
  • When the report was written, Pool claims appeared to be strangely benign for 2008/09, with only two Pool claims in excess of US$10 million having been reported thus far. This curious reduction in very large claims is unlikely to persist and emphasizes the volatility of the current market and consequently the difficulty of making predictions in the present environment.
  • There is a marked variance between the financial position of Clubs and their ability to withstand the current market uncertainties. The discrepancy between the strongest and weakest is likely to become even greater.
  • General increases for the February 20, 2009 renewal have been announced predominantly in the 10 percent to 20 percent range, with the market average at 16.5 percent, only marginally higher than those charged for 2008.

  Executive Director Ben Abraham, who heads the Willis P&I team, commented on the review saying, “The unpredictability of the world economic position, combined with the volatility of claims, will undoubtedly result in a hardening of the Clubs’ resolve at the forthcoming renewal. No matter how clear the necessity for increased premium levels, the opposing pressure of vessel operators facing a weakening freight market will most certainly lead to a renewal that is every bit as confrontational as last year.”

  Willis believes that the role of a broker will be of ever increasing importance to Club members. Willis’ specialist P&I team combines unrivalled strength and knowledge with a significant and global spread of business, and is ideally positioned to assist its clients through these very challenging times.

  The annual report provides a detailed overview of the P&I marketplace and explores the main themes that have emerged over the past year. It also looks at what key drivers may affect individual operators in the coming months of financial uncertainty. Areas covered include a financial analysis of the market, with predictions for the results of the current year; a review of the market for reinsurance and pooling; a financial analysis of each Club; supplementary call history; release calls and the P&I fixed premium market.

  Willis Group Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 20,000 Associates serving clients in some 190 countries. Additional information on Willis may be found at www.willis.com..

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  Note to Editor: To view the full Willis Protection & Indemnity Market Review 2008/09 please go to: http://www.willis.com/Documents/Publications/Services/Professional_Indemnity/Protection_and_Indemnity.pdf

• Willis: Airline Insurance Market Shows Continued Signs of Hardening; Double-Digit Increases Seen in November; Trend Expected to Continue
  

  Willis: Airline Insurance Market Shows Continued Signs of Hardening

  Double-Digit Increases Seen in November; Trend Expected to Continue

  London, UK, December 16, 2008 –- Willis Group Holdings (NYSE:WSH), the global insurance broker, expects aviation insurance prices to rise and the insurance market to harden further through the end of 2008 and into 2009, according to the latest report issued by the broker’s global Aviation Practice.

  The latest Airline Insurance Insight report from Willis indicates that lead premiums in November have increased 16 percent, while overall program premiums are increasing at an even faster rate. The market saw 18 renewals in November, including some of the world’s largest programs. Despite only having four more renewals than October, due to th