International News 31/07
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US Insurance Losses Rise
Home insurance companies in the United States incurred the most significant underwriting losses in 2023. The losses were primarily attributed to the high number of natural disasters that occurred last year. Furthermore, inflation and population growth in high-risk areas exerted considerable pressure on financial markets. As reported by rating agency AM Best, insurance companies providing homeowners' coverage reported net underwriting losses of $15.2 billion, representing the worst year since at least 2000 and more than double the previous year's losses. The report identified population growth in areas prone to natural disasters as a key factor contributing to these losses. Census data revealed that six states, including California and Texas, were responsible for half of the country's population growth during the 2010s and were particularly susceptible to severe weather events. Consequently, insurers have either ceased to provide coverage in these disaster-prone areas or increased premiums, which has created affordability issues for homeowners.
https://internasional.kontan.co.id/news/kerugian-asuransi-amerika-serikat-meningkat
Central Bank of Singapore maintains interest rates
The Monetary Authority of Singapore (MAS) has announced that it will maintain its monetary policy unchanged for the fifth consecutive time. This decision was in line with the expectations of economists, given that the country's economic growth has accelerated and inflation is expected to decelerate towards the end of the year. MAS anticipates that the economy will continue to strengthen throughout the remainder of 2024, with growth reaching a rate of 2% to 3%. The bank also anticipates a moderation in core inflation during the fourth quarter of this year, with a projected rate of approximately 2% in 2025, contingent on the absence of new cost shocks. The Monetary Authority of Singapore (MAS) will maintain the current rate of appreciation on the Nominal Effective Exchange Rate (S$NEER) policy band. The bank considers the current policy settings to be appropriate and believes they will help to restrain imported inflation and domestic cost pressures, ensuring price stability in the medium term. MAS has revised its inflation forecast to an average of 2% - 3% for the current year, while maintaining its core inflation forecast at 2.5% - 3.5%. This decision by MAS allows for maximum flexibility in future policy meetings, pending further confirmation or reassessment of the economic outlook.