Markets

The American Bankers Association is calling for "wholesale" overhaul of the National Flood Insurance Program, including providing incentives for the private market to assume a greater role.

Aon Benfield has agreed to serve as placement advisor to a new sudden oil spill consortium, formed to deliver larger liability limit coverage for deepwater drilling in U.S. waters, Aon and Munich Re announced late last month.

Add Bermuda's Renaissance Reinsurance Ltd. to the list of foreign reinsurers taking advantage of Florida's reduced collateral requirements.

One thing is clear going into 2011. While there are signs of economic improvement there is no doubt that there are plenty of challenges that lie ahead for the year.

Local reinsurers are expected to benefit from new regulations in Brazil that require local insurance companies to cede 40 percent of reinsured risk to local reinsurers, according to Moody's Credit Outlook.

Regulatory initiatives dealing with implementation of the financial services reform law, and such old business as providing certainty to the NFIP will keep p&c insurance industry lobbyists extremely busy this year.

Passage of landmark health care reform legislation last March is forcing participants in the insurance industry, especially agents, to mobilize in efforts to secure changes to the legislation that ensure they have a role in the industry going forward.

In Florida, when selling excess of loss coverage for residential risks, incorporating the effect of the Florida Hurricane Catastrophe Fund adds complexity to otherwise straightforward deals. This makes underwriting property catastrophe reinsurance in the Sunshine State a uniquely difficult undertaking.