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CNA Financial Corporation announced it expects to report pretax net catastrophe losses of US$143 million for the third quarter of 2024.

Approximately 75% of these losses are attributed to four major events, including US$55 million from Hurricane Helene. The remaining US$35 million in losses is spread across several other events from the quarter.

The catastrophe losses consist of US$127 million in the commercial segment and US$16 million in the international segment. CNA stated that the combined ratio impact of these catastrophe losses aligns with its third-quarter average over the past five years.

In addition, CNA expects to report pretax net catastrophe losses related to Hurricane Milton, estimated between US$25 million and US$55 million, in its fourth-quarter 2024 results.

CNA’s chairman and CEO, Dino E. Robusto (pictured above), expressed concern for those affected by the recent hurricanes and other catastrophic events during the third quarter.

“We are all saddened by the devastation and destruction from Hurricanes Helene and Milton as well as other catastrophic events during the third quarter. Our thoughts are with those that lost loved ones, homes, and businesses and everyone suffering and working to recover,” Robusto said.

CNA is scheduled to report its full third-quarter 2024 results on Nov. 4, before the market opens.

Preliminary figures for the first three quarters of 2024 show global economic losses from natural catastrophes at US$280 billion, with insured losses reaching US$108 billion, according to Gallagher Re.

While overall losses remain slightly below the recent 10-year average of US$309 billion, insured losses have exceeded the decadal average of US$102 billion by 5%, primarily driven by a higher frequency of low-to-mid-size events with losses of US$2 billion or less.

Gallagher Re notes that much of the insured losses have been attributed to “non-peak” perils such as thunderstorms, floods, and wildfires, which have accounted for 68% of overall economic losses and 76% of insured losses.

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Insurance associations from the UK, Canada, Australia, and New Zealand have urged Commonwealth leaders to prioritise the economic impact of extreme weather at the upcoming Commonwealth Heads of Government Meeting (CHOGM) in Samoa.

This follows a Global Insurance Protection Gap Forum held in Sydney on Oct. 18, where the four organisations, alongside insurers, regulators, and Australian government representatives, discussed the increasing gap between insured and uninsured losses caused by extreme weather.

Combined, these associations represent insurers responsible for writing approximately US$200 billion in gross annual premiums.

Global insurance protection gap

During the forum, participants noted that climate change is exacerbating the frequency and severity of natural disasters, widening the global insurance protection gap. Rising populations and expanding development in high-risk areas, such as flood zones, were identified as contributing factors.

Attendees called for greater collaboration between governments and insurers to manage future risks and reduce the protection gap. Additionally, they cautioned that excessive taxes and levies on insurance premiums could further reduce access to affordable coverage.

“We are now at a crossroads, with a new government in post and a review of the planning system underway. It’s vital that decisions are taken for the long-term and made for the benefit of all. That’s not just investing in flood defences but also changing where and how we build. Action is needed now, not in the future when the challenge will be ever greater,” she said.

Canada’s insured losses from extreme weather events

IBC president and CEO Celyeste Power shared Canada’s experience with multiple natural disasters last summer, including floods and wildfires, which resulted in $7 billion in insured losses over five weeks.

“More frequent and intense disasters, coupled with ongoing development of areas at high risk of extreme weather and growing asset values, are widening the gap globally between those who can afford insurance in high-risk areas and those who can’t – often leaving society’s least wealthy unable to rebuild and recover when disaster strikes,” he said.

“By working closely together, our insurance representative bodies are committed to doing their bit to help reduce risk from natural hazards and protect our families and communities,” he said.

He also emphasised the shared goal of minimising risks from natural hazards and maintaining insurance affordability.

“By reducing the protection gap, we keep communities safe, reduce the costs to taxpayers and ratepayers and maintain insurance capacity and affordability,” Faafoi said.

Munich Re reports that from January to June 2024, the global average temperature was approximately 1.5°C higher than pre-industrial levels, with record-breaking temperatures occurring worldwide.

The rise in temperature has led to increased losses from natural disasters, particularly in Africa, where recent events highlight the need for the insurance industry to address climate change risks.

Global losses from natural catastrophes in the first half of 2024 amounted to $120 billion, with insured losses making up about half, or $62 billion. In its report, Munich Re suggests that, based on current figures, insured losses could exceed the $100 billion mark by the end of 2024, which has become a significant point of discussion since 2023.

Munich Re attributes most of the global losses (68% of economic losses and 76% of insured losses) to severe thunderstorms, floods, and wildfires, categorized as “non-peak” perils. In Africa, natural disasters caused economic losses of $500 million in the first half of 2024.

The region’s insurance protection gap remains substantial, with penetration levels typically below 1%. According to Munich Re, floods in East Africa during March and April accounted for the most significant losses.

Munich Re’s data shows that economic losses in Africa were lower in the first half of 2024 compared to previous years, but past events such as the 2023 Morocco earthquake and 2022 floods in South Africa and Nigeria caused much higher damage. In 2023, economic losses in Africa reached $14.6 billion, primarily driven by the earthquake in Morocco.

To assess preparedness for climate risks, Munich Re conducted a survey of 500 South African business representatives across various industries, including insurance, agriculture, and transportation. The survey found that 86% of participants were concerned about the economic effects of climate change on their organizations.

While the level of concern has increased over the last decade, the willingness to invest in preventive measures is still lower, though visible.

Cost remains the major barrier

Munich Re’s survey also asked homeowners about their response to increasing risks from weather-related disasters. The majority, 57%, expressed interest in expanding their insurance coverage to protect against these risks, but cost remained the primary barrier preventing them from doing so.

Looking ahead, Munich Re highlighted several key actions insurers can take to address the growing risks posed by climate change. These include improving data intelligence and portfolio steering, particularly through tools like Munich Re’s Location Risk Intelligence software, which offers climate risk analytics for thousands of locations.

Insurers are also encouraged to adjust pricing models to reflect the increased frequency and severity of natural catastrophes, as well as to promote risk mitigation efforts across the value chain.

Munich Re acknowledged that while exposure growth, such as urban development, has contributed to increased losses over time, climate change has also intensified the frequency and severity of natural disasters.

The company referenced studies, such as those from the World Weather Attribution organization, which suggest that climate change has made certain weather events, like the 2022 KwaZulu-Natal floods, more frequent.

Munich Re said that extreme weather will continue to impact society, and it is essential for insurers and other stakeholders to work together to adapt to these changes and protect people and economies from the consequences of climate-related risks.

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The Capgemini Research Institute’s World Life Insurance Report 2025 highlights ongoing challenges in the life insurance industry, particularly in meeting modern customer experience expectations.

Legacy technology is cited as a key barrier to progress. However, a small group of life insurers globally have managed to deliver significantly improved customer experiences, earning “best-in-class” status.

The report noted that these insurers have achieved a 38% higher Net Promoter Score (NPS), an 11% lower expense ratio, and 6% higher revenue growth compared to their mainstream competitors over the past three years.

The report also notes the pressures life insurers are facing, including high inflation, economic uncertainty, and waning consumer interest. Between 2007 and 2023, market penetration in mature markets declined by 33%.

Customer dissatisfaction is prevalent, with half of policyholders expressing disappointment with their experience, particularly in areas such as product offerings, onboarding, servicing, and claims processes.

Challenges arise throughout the customer journey. During onboarding, 35% of retail policyholders find insurance terms too complex, while 27% are dissatisfied with lengthy application processes. After purchasing a policy, 25% of both retail and group customers report frustration with long wait times, and 23% are displeased by the lack of self-service options for making policy changes.

The claims process, often impacted by limited digitization, poses further challenges. One-third of retail policyholders face difficulties with complex claims applications, and 27% cite a lack of empathy during claims handling.

Younger customers’ demands

The report reveals that younger policyholders, aged 18-40, experience more frustration throughout the insurance journey compared to those aged 41-60. Issues include slow and complex onboarding, limited communication channels, and insufficient self-service options.

Additionally, younger customers demand more claims flexibility, with 42% pointing to inflexible payout structures as a key concern, compared to 26% of older policyholders.

While insurers acknowledge the need to redesign onboarding, servicing, and claims experiences, only 9% have developed processes that capture data from multiple sources to deliver personalized experiences through preferred customer channels.

Samantha Chow (pictured above), global leader for life insurance, annuities, and benefits at Capgemini, noted that life insurance is moving from a “must-have” to a “maybe” proposition. She emphasized that insurers must move beyond a product-driven approach to focus on customer engagement, particularly with younger generations.

“Many insurers are struggling with legacy technology or investments that have failed to deliver the target returns. The path forward is a customer-centric transformation that draws inspiration from the best-in-class by embedding AI-augmented, human-touch service into core processes,” Choe said.

Efforts to improve customer experience have stalled for many insurers. According to the report, only 41% of insurers met or exceeded their transformation goals. Initiatives were often hampered by unexpected integration challenges, a lack of alignment with business objectives, and insufficient skilled resources.

Generative AI in insurance

Despite these setbacks, a small group of best-in-class insurers have embraced new technologies, including generative AI, to enhance customer service. These insurers have automated many aspects of underwriting and claims processing, enabling more efficient onboarding and improving the overall customer experience.

For example, 78% of best-in-class insurers have automated underwriting processes, compared to only 15% of mainstream insurers, and the same percentage offer policyholders access to self-service portals, versus 13% of other carriers. Moreover, 56% of best-in-class insurers provide AI-assisted claims services, compared to just 3% of mainstream insurers.

The report also highlights the transformative potential of generative AI but notes significant talent challenges. While 67% of best-in-class insurers are ready to leverage generative AI, only 25% of mainstream insurers are similarly prepared.

A shortage of skilled talent, particularly in areas such as behavioral science, experience design, and AI prompt engineering, remains a significant hurdle.

The success of future transformation efforts will depend on insurers’ ability to effectively implement new technologies and attract, develop, and retain the necessary talent. Those that can combine advanced technological tools with skilled professionals will be well-positioned to lead the industry toward a more customer-centric approach, it was stated.

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Claims management specialist Crawford & Company has announced the launch of Turvi, a new insurtech company offering software-as-a-service (SaaS) solutions designed to enhance the property and casualty claims ecosystem.

Turvi’s SaaS products incorporate artificial intelligence (AI) and automation to streamline claim processing, accelerate estimating, simplify coverage review, and improve the overall customer experience. Initially developed by Crawford & Company for its own clients, the Turvi suite will now be available to the wider claims industry.

Ken Tolson (pictured above), who has over 30 years of experience at Crawford in various roles, will serve as chief executive officer of Turvi. Tolson is known for his expertise in claims management and technology innovation within the insurance sector.

“Having lived and learned from every facet of the claims lifecycle in our time at Crawford, we understand the industry’s complex needs, and we’ve built customised technology solutions to address its challenges,” Tolson said.

Tolson highlighted that the claims industry faces a service gap, with carriers often under-resourced to manage claims efficiently.

“We are launching Turvi to help address this issue, by providing partners, large and small, new and established, the tools they need to address big problems in the claims process – and in doing so, to help improve the policyholder experience,” he said.

Crawford President and CEO Rohit Verma said that the new venture aligns with Crawford’s focus on leveraging technology and talent to transform the insurance industry.

“I have every confidence that Ken and his team will leverage partnerships and collaboration to create groundbreaking new synergies that will revolutionise how the entire industry processes claims,” Verma said.

Turvi is headquartered in the Atlanta Tech Village. Tolson noted that being part of this environment connects Turvi to leading technology partners in the region.

To support its launch, Turvi will attend InsurTech Connect in Las Vegas from Oct. 15-17, and the Triple-I Joint Industry Forum on Nov. 20.

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HDI, a global insurer specialising in aviation, has joined the Flight Safety Foundation’s Basic Aviation Risk Standard (BARS) Program as a new member.

The company said it joined the program to enhance operational safety for its aviation clients.

Basic Aviation Risk Standard program

The BARS program provides access to anonymised audit and accident data, which HDI plans to use to improve its risk management strategies.

As a BARS Member Organization (BMO), HDI will also strengthen its safety programs for brokers and policyholders.

Membership in the Flight Safety Foundation is included with the BARS program, offering additional resources for safety initiatives.

Benefits of joining the Basic Aviation Risk Standard program

HDI’s aviation insurance experts have found that operators participating in the BARS program tend to manage risk more effectively, resulting in fewer claims. Additionally, third-party assessments of these operators against the BAR Standard provide valuable insight for both insurers and operators.

HDI’s global underwriting teams will benefit from deeper insights into the safety performance of contracted operators. These teams will receive training on using the BARS framework to support safety initiatives and enhance their understanding of global aviation risk.

Jamie Bowes (pictured), general manager and global head of the aviation centre of excellence at HDI, explained that the partnership will:

• improve the safety of the company’s clients
• strengthen its underwriting capabilities
• provide access to critical data that would allow the company to assess risks more precisely

“The BARS membership will make our clients safer! Joining the program is a win-win situation for all parties being the client, HDI, and the Flight Safety Foundation,” Bowes said.

BARS expands activities in insurance sector

David Anderson, managing director of the BARS program, welcomed HDI as a new partner. He commented that HDI’s participation highlights the increasing importance of the program in the aviation insurance sector.

“Our new partnership with HDI once again demonstrates the growing strength of the BARS program in the global aviation insurance sector. We are very happy to have HDI on board with us and to work together on our common goal of making contracted aviation safer,” he said.

BARS offers de-identified audit data and safety performance insights to its member organisations, which insurers like HDI can use to refine their risk management practices.

“Our de-identified data insights are made exclusively available to our BARS Member Organizations and HDI can now use these insights as a valuable tool in the effective management of their risk in the worldwide contracted aviation services sector,” Anderson said.

AM Best has reaffirmed the National Reinsurance Corporation of the Philippines (Nat Re) with a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good), citing a stable outlook for both.

The Philippines’ only domestic reinsurer has seen its risk-adjusted capitalization remain at the strongest level despite challenges posed by significant premium growth in 2023.

Nat Re’s balance sheet strength, assessed as strong, is underpinned by its risk-adjusted capital, as measured by the Best’s Capital Adequacy Ratio (BCAR). Although premium growth has reduced capitalization levels, the overall financial position remains solid.

The company’s investment portfolio is seen as moderate risk, with most assets in fixed-income securities issued by the Philippine government. Despite exposure to natural catastrophes, this risk is partly offset by a retrocession program that helps manage potential losses.

Operating performance continues to be rated as adequate, with a five-year average return-on-equity of 3.6%. In 2023, Nat Re reported a notable increase in net profit due to better underwriting performance and improved investment results. The improvement was driven by lower acquisition and management expenses, but the non-life portfolio faced significant losses and reserve strengthening, which affected the overall loss ratio.

Meanwhile, investment income, primarily from interest and dividends, remained a positive contributor to the company’s earnings.

AM Best also views Nat Re’s business profile as neutral. The company benefits from strong relationships with local insurers and mandatory cessions, while new opportunities through government initiatives and local underwriting facilities have enabled it to expand its business beyond mandatory requirements.

Nat Re’s acquisition of foreign agriculture treaties in 2023 has bolstered diversification efforts, but the company will need to maintain strong underwriting risk management to sustain growth.

AXIS Capital Holdings Limited has announced significant leadership changes for its two key European entities, AXIS Specialty Europe SE (ASE) and AXIS Re SE (ARe), effective Oct. 7. The appointments come as both entities undergo leadership transitions involving longtime executives.

Dax Gulmohamed has been appointed as the new CEO of ASE, where he will oversee the company and its branches in Belgium and the UK. With a career at AXIS spanning over two decades, including his role as ASE’s chief underwriting officer from 2016 to 2024, Gulmohamed will relocate from London to Dublin for the position.

He takes over from Fintan Mullarkey, who is stepping down after a 21-year tenure with AXIS, during which he played a pivotal role in developing the company’s European platform.

“Fintan has been a highly valued and trusted member of our European Leadership group for over two decades; his diligence, technical expertise and business acumen have been key to the successful growth of our European Specialty Insurance Business. We wish him every success in his future endeavors,” AXIS chief financial officer Pete Vogt said.

For Gulmohamed’s new role, he added, “A trusted and respected leader within AXIS for more than 20 years, Dax brings expansive specialty underwriting knowledge and acumen, as well as a deep understanding of the London market. We welcome him to this role.”

In a parallel move, John O’Neill has been appointed CEO of ARe, where he will manage the Ireland-based entity and its Zurich branch. O’Neill will continue in his current role as senior vice president of Life Reinsurance, in which he has served since he joined AXIS in 2016.

A qualified actuary and Fellow of the Society of Actuaries in Ireland, O’Neill succeeds outgoing CEO Mark McCormick, who is leaving AXIS after 14 years.

“Mark was instrumental in supporting the successful execution of our repositioning as a specialist reinsurer and driving margin expansion. We wish him every success in the future,” AXIS Re CEO Ann Haugh said.

“In John, we have a worthy successor who brings extensive reinsurance expertise garnered over a nearly three-decade career. We look forward to serving with John in this new role.”

Given the rapid evolution of cyber solutions, including incident response and proactive services, it’s unsurprising that conversations about the role of cyber insurance in protecting policyholders are changing.

Reflecting on what this means for brokers, James Burns (pictured), head of cyber strategy at CFC underscored the importance of maintaining focus on insurance as a promise to pay as well as, increasingly, a promise to protect. There’s still so much nuance between different cyber insurance products, he said, and those coverage nuances can have massive implications at the point of claim.

One – The difference between data recovery and data recreation

Not all policies are created equal, and for brokers, the challenge is differentiating between covers that can appear very similar but actually differ greatly depending on how the policy language is crafted, or how the policy is structured. An example of one of these subtle nuances is the difference between data recreation and data recovery in cyber insurance policies. “That one word different completely changes the nature of cover available under the policy,” he said. “and I think it’s something brokers really need to watch out for.”

Most cyber policies will cover data recovery, which tends to be applied when an insured has their data or systems encrypted or corrupted by a threat actor, usually by ransomware. Data recovery covers the cost of electronically reconstituting that data to the extent that it is electronically recoverable. But what happens if data that is critical to a business’s ability to operate isn’t recoverable electronically?

“That’s where data recreation steps in,” he said. “Data recreation covers the cost of recreating that data set from scratch, often using external specialists to essentially rebuild data sets to their pre-incident state. Burns cited a recent example of this where an engineering firm insured by CFC was hit by a ransomware attack, which encrypted all the data files on their servers and all the data backed up on their local hard drives.

“They thought they’d been backing up data to a cloud server but when they went to restore those backups they discovered they’d been failing for the past four years,” he said. “So, all the files relating to every project and proposal they had during that period were totally unrecoverable. To add insult to injury, the threat actor was completely unresponsive so paying the ransom wasn’t even an option for them; they were totally stuck, unable to continue to service their clients without access to the files.”

The data recreation element of the client’s policy meant the engagement of external engineers to come in and assist the management team in recreating what had been on those critical business files. “Over a period of months, they gained back nearly everything that was lost at a cost of around £200,000, which was covered in full. But if the policy hadn’t included that one word – recreation as opposed to just recovery – there’s a good chance they wouldn’t have been able to do any of this and could have gone out of business.”

Two – why unlimited reinstatements are a gamechanger for policyholders

Another critical coverage consideration is around unlimited reinstatements, which can easily go undetected by brokers. “The vast majority of cyber policies give the policyholder a single aggregate limit. So, you buy a cyber policy with a £1 million limit, with £1 million for response, £1 million for business interruption, £1 million for liability and so forth. But those limits are always subject to an overall cap of £1 million for the policy as a whole, so each claim a policyholder has erodes that limit.

“So, if they have an incident which causes a £1 million claim, they’ve technically got no money left for any subsequent issues that might arise throughout the course of their policy period. Unlimited reinstatements allow for the full reinstatement of certain limits to ensure that the policyholder is fully protected in the event that they do have more than one incident during the policy period.”

Given the high frequency of cyberattacks today and the costs involved, businesses are faced with the prospect of suffering more than one attack within a relatively short space of time. Unlimited reinstatements mean that brokers can assure their clients that even if they’re hit by a devastating attack, their coverage will support them through any subsequent incidents. “It’s back to nuance and how the words on a policy can actually transform the way that policy works. And that can be easy for brokers to miss because they aren’t necessarily used to seeing limits on a cyber policy work this way.”

Three – what are nil deductibles and why are they so important?

A third key area that brokers need to be on the lookout for is nil deductibles. It’s a coverage consideration perhaps more important in cyber than other lines of business because speed of response is so critical in minimizing the impact of a cyber incident. The sooner the coverage provider is alerted, the faster they can engage their technical expert first responders to triage, contain and remove the threat.

However, some businesses avoid contacting their cyber insurers straight away because they worry about hefty upfront costs in the form of their excess or deductible, or they’re concerned about triggering a claim for a small event that could potentially increase their future premiums. So, rather than engaging their insurer over something that could turn out to be nothing, they’ll wait and see how the situation develops and only notify them if it starts looking serious.

“But when it comes to cyberattacks, every second really does count,” Burns said. “If you wait and see how the situation develops, by the time you notify your insurers, the situation could be much more serious and costly than if you had called in right away.”

He advised brokers need to be on the lookout for policy wordings that offer initial, instant response services at a nil deductible. That wording nuance means policyholders can notify their insurer when they suspect something is awry, without the burden of having to pay for the initial response, without a claim being automatically triggered, and with access to an expert in-house team. Insureds should feel comfortable tapping into the expertise of insurers and leaning on their services in their time of need. This approach is proven to lead to much better outcomes – reputationally, financially and operationally for policyholders.

Cyber products have evolved to become about much more than just a policy wording, but the policy wording remains immensely powerful – any business interruption dispute shows that. Sharing his key message for brokers, he asked that they take the time to really understand what the language used in a cyber policy means, and to lean on their insurer for support.

“Ask your insurer questions,” he said. “Give them scenarios and say, ‘Would this be covered under your policy? What does this word mean? How does recreation differ from recovery?’ And make sure that you really push them to give you answers. Because I think that it’s important that brokers who are selling these products truly understand the extent of the cover that’s given under them, or the cover that might not be there in a policy that’s been worded a certain way.”