December 2007/2

Analysts and commentators are becoming more confident in offering predictions on the estimated level of sub-prime related losses in financial markets and (re)insurance markets alike, with most agreeing that the worst news has yet to emerge.

Barbican Syndicate 1955 became the latest Lloyd's start-up welcomed into the fold in November, the eighth new venture approved this year combining to bring in excess of £650mn fresh capacity to the market for 2008.

It may still be unlikely, but there is always the potential of the nightmare scenario envisaged more than 20 years ago by industry legends Robert Clements and Robert Newhouse when they set up...

In a special three-page report, The Insurance Insider has a comprehensive analysis of the various initiatives being deployed by brokers to raise revenues in the soft market

Capacity moderately down as start-ups offset de-emptions

In addition to recent brokerage increases by its UK and European operations, Marsh is in discussions with carriers to introduce "enhanced commissions" in its US middle market and small commercial business.

Additional commissions are only one of a number of new initiatives being imposed by brokers as they seek to protect their revenues in the current soft market conditions.

Stocks in the insurance sector continued to suffer in the last month, with investors apparently not heeding assurances from a number of London market companies over exposure to investment and underwriting losses related to the sub-prime fallout.

The Insurance Insider believes Marsh has made an excellent capture with its new chief executive, Dan Glaser

AIM listed Heritage rejects approach; Ironshore remains interested

Marsh UK is mulling a major overhaul of its embedded legacy burden with the outsourcing of its entire back office, The Insurance Insider can reveal.

Our monthly column keeping a check recent US and EU legal and regulatory developments, in association with Sidley Austin LLP