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Bad Timing Drained Returns for Thematic Fund Investors: Morningstar

What You Need to Know Investments in specific strategies have more than doubled in assets under management globally since 2018. A buy-and-hold approach would have offered better results for most, the study found. More volatile funds seem to induce more frequent trading and a tendency to buy high and sell low. Poorly timed trades caused investors in thematic funds to miss two-thirds of the returns in those vehicles, a recent Morningstar study found. Investors in thematic funds earned on average only 2.4% a year over the five years through June 30, well short of thematic funds’ overall 7.3% average total return annualized, according to “The Big Shortfall.” This meant that investors experienced a 4.9-percentage-point annual return shortfall due to  mistimed purchases and sales, according to Morningstar. “Our findings show that, in aggregate, investor buying and selling habits connected with thematic funds over the last five years have destroyed considerable value,” a Morningstar report on the research said. Thematic funds, which invest in particular strategies, such as artificial intelligence or aging populations, have more than doubled in assets under management globally since 2018 and sparked questions about how investors use them, Morningstar noted. They saw a far greater gap in investor versus...

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Federal Appeals Court Strikes Down Air Pollution Permit for Texas LNG Terminal

Article 0 Comments A federal appeals court on Monday struck down a major air pollution permit issued by Texas’s environmental regulator, arguing that the state allowed improperly high emissions limits for Port Arthur LNG, a gas liquefaction and export terminal currently under construction on the Gulf Coast. In a 17-page opinion, a three-judge panel at the Fifth Circuit Court of Appeals ruled that the Texas Commission on Environmental Quality “acted arbitrarily and capriciously under Texas law” when it “declined to impose certain emissions limits on a new natural gas facility.” The judges remanded the permit for Port Arthur LNG back to the TCEQ for correction. “I hope this goes out and sends a message to the rest of the companies that are looking at us and want to make us a sacrifice zone,” said John Beard, a retired refinery worker and community activist in Port Arthur who first challenged the permit. “We’re going to attack every single one of them and we’re going to take them down where we can.” The court’s decision follows three years of arguments and appeals since Beard, a former industrial firefighter and founder of the Port Arthur Community Action Network, first challenged the proposed permit,...

Study: Medical Payments to Treat Injured Workers in Texas Stable Over Five-Year Period 0

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Study: Medical Payments to Treat Injured Workers in Texas Stable Over Five-Year Period

Article 0 Comments Medical payments to treat injured workers in Texas were stable from 2016 to 2021, according to a new study from the Workers’ Compensation Research Institute (WCRI). The study, CompScope Medical Benchmarks for Texas, 24th Edition, found that stability in medical payments masked offsetting changes, “including a decline in utilization of medical care coupled with increases in outpatient and inpatient hospital payments,” said Ramona Tanabe, president and CEO of WCRI. A decline in payments per claim mainly occurred between 2019 and 2021, which WCRI said was largely affected by the Covid-19 pandemic. Other findings from the study include: Utilization of nonhospital services decreased by 11 percent from 2020 to 2021, mainly because of fewer visits per claim. Hospital outpatient payments per workers’ compensation claim increased from 2019 to 2021 mostly due to growth in payments per service. Payments per workers’ compensation claim were lower in Texas than typical for both nonhospital and hospital care. The study examined medical services in Texas compared with 16 other states overall, by type of provider, and by type of medical service. Topics Trends Texas Workers’ Compensation Was this article valuable? Thank you! Please tell us what we can do to improve this...

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Toxic Chemicals Found in Wells Near Michigan Shoe Manufacturer’s Headquarters

Article 0 Comments ROCKFORD, Mich. (AP) – Tests show toxic chemicals in wells near the headquarters of a western Michigan shoe manufacturer, years after the company dredged and transferred river sediment from a leather-processing tannery. There is no dispute Wolverine Worldwide used a 3M Co. waterproofing product that contained PFAS, known as “forever chemicals,” and has settled lawsuits over land and well contamination in the Rockford area, north of Grand Rapids. But now there`s a new development: at least 27 properties have contaminated wells in Courtland Township near company headquarters in Rockford, MLive.com reported. “It’s early on and we’re still kind of waiting to figure out what the extent is and what the best action to take is,” said Matt McCannon, the township`s elected supervisor. “We have avoided it up until now.” Wolverine posted a statement online last week, saying it had state approval to “occasionally dredge sediment from the Rogue River in front of our former tannery to ensure proper operation of the water intake pipes.” The sediment was then placed at headquarters property in the 1980s and early 2000s, Wolverine said. “We are actively working to identify and delineate the sediment, and will coordinate with EGLE to determine...

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Variable Annuities Attract Premium Deposits in Year 2: Study

For companies that did not provide data for the study, the purchase price is $60,000. Insurers can use the data to design products, price products and improve predictions about how in-force contracts will perform. The public materials: The team has provided some information on the study summary page and in a general report about the findings. The average annuity included in the study had about $133,000 in contract value exposed to surrender, and the average contract owner who withdrew cash took out about $11,100. The survey shows that benefits guarantees increase the odds that owners will keep their contracts. In 2021, for example, the surrender rate was about 13% for contracts with GLWB riders and about 17% for products without any living benefit guarantees. Credit: Song about summer/Adobe Stock

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Magnitude 3.6 Earthquake Rattles Parts of Northern Illinois, Parts of 3 Other States

Article 0 Comments STANDARD, Ill. (AP) __ A magnitude 3.6 earthquake rattled northern Illinois and parts of three other states early Wednesday, awakening some residents and spurring reports to 911 about homes shaking, the U.S. Geological Survey and police said. The small earthquake was detected about 4:41 a.m. local time and was centered about sixth-tenths of a mile (1 kilometer) south-southeast of Standard, Illinois, a town that`s about 100 miles (161 kilometers) southwest of downtown Chicago, the federal agency said. The temblor occurred about 2.9 miles (4.6 kilometers) below the Earth`s surface. People living as far away as southern Wisconsin, southeastern Iowa and northwest Indiana reported that they felt the quake, said Jessica Jobe, a research geologist with USGS. She said “weak to moderate” shaking was reported across that region but the USGS had received no reports of damage. While there’s neither a history of large quakes in that area of Illinois, nor a known fault zone in that region, Jobe said “small to moderate earthquakes can occur anywhere and anytime in the Eastern U.S.” Administrative Lt. Doug Bernabei with the Peru Police Department, located several miles north of Standard, said he was up making coffee when his house shook....

Équité Association Releases Annual List of the Top 10 Most Stolen Vehicles in Canada 0

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Équité Association Releases Annual List of the Top 10 Most Stolen Vehicles in Canada

Is your car on a thief’s shopping list? For the first time, Équité also announces the Top 10 Least Stolen Vehicles in Canada Toronto, ON (Nov. 14, 2023) – Équité Association, a not-for-profit working to eradicate insurance crime on behalf of the Canadian property and casualty (P&C) insurance industry, has released its annual Top 10 Most Stolen Vehicles in Canada. The #1 most stolen vehicle in Canada of 2022 was the Honda CR-V, for the second year in a row. Notably, nine of the most popular model years stolen are 2019 or newer as criminals aim to maximize their profits by stealing newer vehicles to sell overseas or by re-VINing them to deceive unsuspecting Canadian buyers domestically. Auto thefts in 2022 reached historical highs, with Ontario increasing by 48% and Quebec up 50%, putting Canada in the spotlight internationally as a source country for illegal trade. Vehicles are being stolen by both domestic and international criminal organizations, with proceeds funding domestic drug trafficking, and international terrorism. “Canadians expect to see a collaborative approach to combatting this urgent and continuing national auto theft crisis,” said Terri O’Brien, President & CEO of Équité Association. “On behalf of our insurance industry members, we...

Detection and response tools increasingly important as cyber claims surge: Allianz 0

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Detection and response tools increasingly important as cyber claims surge: Allianz

Cyber Security Trends 2023 Ransomware incidents rising again as criminals use data exfiltration and supply chain attacks to maximize their leverage. Allianz Commercial analysis of large cyber losses shows the number of cases in which data is exfiltrated is soaring, as is the number of incidents becoming public. Cyber breaches that are not detected and contained early can be 1,000 times more expensive than those that are. Companies’ cyber security priorities should include bolstering their detection and response capabilities. Boston, MA (Oct. 30, 2023) – Following two years of high but stable loss activity, 2023 has seen a worrying resurgence in ransomware and extortion claims as the cyber threat landscape continues to evolve, Allianz Commercial warns in a new report. Hackers are increasingly targeting IT and physical supply chains, launching mass cyber-attacks, and finding new ways to extort money from companies, large and small. Most ransomware attacks now involve the theft of personal or sensitive commercial data for the purpose of extortion, increasing the cost and complexity of incidents, as well as bringing greater potential for reputational damage. Allianz Commercial analysis of large cyber losses shows the number of cases in which data is exfiltrated is increasing every year –...

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New Tax Credit Boosts Appeal of Used Electric Cars

What You Need to Know While used car prices have fallen recently, they remain much higher than before the COVID-19 pandemic. Those considering a purchase may be interested in available tax credits on used cars that qualify as “clean” vehicles. Electric vehicles, plug-in hybrid electric vehicles and fuel cell vehicles may all qualify, but the car and the car’s buyer must also satisfy certain requirements. The price of used cars is falling across the board.  According to some estimates, used car prices are about 8% lower today than a year ago. Still, prices remain much higher than before the COVID-19 pandemic.  That means that clients who are considering a used car purchase may be particularly interested in learning more about available tax credits that can serve to reduce the price of used cars that qualify as “clean” vehicles.  Electric vehicles, plug-in hybrid electric vehicles and fuel cell vehicles that meet certain standards may all qualify the buyer for a tax credit under IRC Section 25E. However, both the vehicle and the vehicle’s buyer must satisfy certain requirements to qualify for the credit in the first place. Section 25E: The Basics The Inflation Reduction Act of 2022 created a new tax credit...

Global InsurTech investment surpasses $1 billion in Q3: Gallagher Re 0

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Global InsurTech investment surpasses $1 billion in Q3: Gallagher Re

Gallagher Re Global InsurTech Report for Q3 2023 In this report, we review global InsurTech funding and investment quarter over quarter. We continue our focus for the 2023 series on the lifecycle of InsurTech funding, with this Q3 report spotlighting mid-stage expansion funding into InsurTechs. Rolling Meadows, IL (Nov. 2, 2023) – Gallagher Re is pleased to announce the release of its Q3 2023 Global InsurTech Report. Moving through this crucial inflection point of global InsurTech, from phase one the ‘great experiment’, into phase two sustainable, profitable business outcomes, we now see in the third quarter of 2023 some thought-provoking examples of what this change looks like, for both InsurTechs and investors. Key Findings for Q3 2023 Global InsurTech funding increased 19.8% quarter on quarter, from $916.71 million in Q2’23 to $1.098 billion in Q3’23. Early-stage InsurTech funding increased 24.7% quarter on quarter, from $216.05 million to $269.45 million. Q3’23 saw average InsurTech deal sizes dip to a six-year low. Deal share for US-based InsurTechs at the highest level since Q1’20. 15.1% of all Q3’23 InsurTech deals were in the mid-stage expansion category, which is less than long-term InsurTech trends. The majority of tech investments from (re)insurers were early stage...