December 12th, 2017

Little-Used Retirement Option Gets a Big Boost: Part II

Posted at 1:00 AM ET

rains_david-5-2015-sm3mparker-sm3David A. Rains, Managing Director and Healthcare and Life Specialty Leader and Michael R. Parker, Managing Director, Senior Business Development Broker

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In the meantime, this complexity and the difficulty in explaining variable annuities to consumers has heavily slanted sales toward expensive, commission-based channels more comfortable with products that are “sold, not bought.” Yet, as has been the historic trend for other financial products and services, demand for simpler, more transparent annuity products that encourage value shopping will be essential in driving future growth. This should favor easy-to-understand, fee-based product designs that investors buy rather than commission-based products agents must sell.

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December 11th, 2017

Little-Used Retirement Option Gets a Big Boost: Part I

Posted at 1:00 AM ET

rains_david-5-2015-sm2mparker-sm2David A. Rains, Managing Director and Healthcare and Life Specialty Leader and Michael R. Parker, Managing Director, Senior Business Development Broker

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With the erosion of defined benefit pension plans and uncertainty around the future of Social Security, the current workforce must find new ways to responsibly manage their income into and through retirement.

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December 8th, 2017

Week’s Top Stories: December 2 - 8, 2017

Posted at 11:00 AM ET

Factors contributing to the Gap Between Economic and Insured Losses; The factors that contribute to the gap between economic and insured losses.

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Flood Insurance; The 2018 Market Opportunity; The U.S. insurance industry is actively seeking new opportunities for growth in a challenging market by identifying untapped customer needs. The potential flood market is over five times the size of the most often mentioned new market, cyber insurance.

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Critical Tool for Making Strategic Enterprise Risk Management Decisions; There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line.

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Asia Pacific Catastrophe Report 2017: Executive Summary; A year marked by generally benign loss experience and few large catastrophe events meant that rates continued to remain positive for buyers in the Asia Pacific region throughout 2017.

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Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists; Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

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And, you may have missed….

Study Identifies Winners in Growing Insurtech Space; A 2017 report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

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December 7th, 2017

Scalability Critical to Developing Substantial Terrorism Market

Posted at 1:00 AM ET

c-gibbs-20-smjamie-russell-final-smCharles Gibbs, Managing Director and Jamie Russell, Vice President

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  • Capacity a major limiting factor in expanding remit
  • Small number of players raising aggregation risk
  • Cover not reaching organizations that need it most

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December 6th, 2017

Flood Insurance: The 2018 Market Opportunity

Posted at 1:00 AM ET

hayes_j_bio-sm1kulik-john-sm3Jonathan Hayes, Managing Director and John Kulik, Senior Vice President

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  • The U.S. insurance industry is actively seeking new opportunities for growth in a challenging market by identifying untapped customer needs. The potential flood market is over five times the size of the most often mentioned new market, cyber insurance
  • Greater access to flood data and loss results and more reliable exposure modeling are enhancing the flood (re)insurance marketplace
  • Several developments are helping carriers understand and monitor aggregation

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December 5th, 2017

Asia Pacific Catastrophe Report 2017: Executive Summary

Posted at 1:00 AM ET

cover-thumbA year marked by generally benign loss experience and few large catastrophe events meant that rates continued to remain positive for buyers in the Asia Pacific region throughout 2017. At the same time, the trend for steady growth in limit purchased continued. Much of the new limit purchased tends to be at the top of programs, and this feeds through to lower overall average rates on line (ROL), which is also reflected in the indices.

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December 4th, 2017

Critical Tool for Making Strategic Enterprise Risk Management Decisions

Posted at 2:43 PM ET

hettinger_cropped-smThomas Hettinger, Managing Director, Strategic Advisory

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  • There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line
  • Companies will be under extra pressure to choose growth strategies carefully because of potential capital pressures from A.M. Best and their potential for low returns due to the extended soft positions of many markets
  • With current capital positions evaluated, robust and current market insight is critical to accurately assess potential growth areas

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December 4th, 2017

GC Capital Ideas Top Stories: November, 2017

Posted at 1:00 AM ET

1. Just Say “Know” to Insurtech; Insurtech’s impact on the insurance industry is surging, reminding us of the influence that technological change and growth bring to the modern consumer and business landscapes and individual industries  -  the development of fintech within financial services being an example.

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2. Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists; Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

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3. From Risk to Resilience: Marsh & McLennan Companies Cyber Handbook 2018: Perspectives on the Next Wave of Cyber; Cyber risk continues to grow as technology innovation increases and societal dependence on information technology expands. A new and important turning point has been reached in the struggle to manage this complex risk. In the war between cyber attackers and cyber defenders, we have reached what Winston Churchill might call “the end of the beginning.”

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4. Understanding Systemic Cyber Risk; Insights Through Pandemic Behavior; Today, through air travel, a carrier of MERS or Ebola can cross the ocean in less than a day, board a crowded subway train and potentially infect hundreds of people. Containment of a pandemic outbreak begins upon discovery, similar to the way in which forensics and network restoration efforts can begin once a cyber breach is identified. According to Platt, the longer the lag until discovery, the more difficult containment and treatment will be, whether it is a biological or cyber event.

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5. Asia Pacific Catastrophe Report 2017: Executive Summary: Losses; Insured losses in Australia and New Zealand were the largest events. The region was also impacted by floods in China, India and Thailand and an earthquake in China. Once again, flood was a major contributor to economic losses in the region, but often in areas where insurance penetration was limited. Flood is difficult for (re)insurers to model, but Guy Carpenter has made significant steps to help clients deal with the problems.

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6. Insurers Challenged by Forces of Technology Disruption; Here we review recent GC Capital Ideas posts on the need for the insurance industry to come to terms with the forces of technological disruption challenging their business models.

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7. Threat Trends on Major Cyber Attacks in 2017; The Marsh & McLennan Companies Cyber Risk Handbook 2018 is published.

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8. Study Identifies Winners in Growing Insurtech Space; A 2017 report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

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9. Insurers Adapting in a Time of Disruption; Here we review recent GC Capital Ideas posts on strategies insurers may utilize to continue to achieve growth in a disruptive environment.

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10. For MPL, Market Softening Continues in 2016-Signs of Pressure Emerge; Since 2010, the medical professional liability (MPL) industry has been navigating a soft market, with declining profitability, diminished investment gains and rising accident year operating ratios. Yet, reserve redundancies have kept calendar year combined ratios below 100 percent, allowing carriers to pay dividends to policyholders while maintaining favorable returns on equity.

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December 1st, 2017

Week’s Top Stories: November 25 - December 1, 2017

Posted at 11:00 AM ET

Study Identifies Winners in Growing Insurtech Space: A 2017 report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

Read the article >>


The Transfer of Pandemic Risk From the Public Sector: Here we review recent GC Capital Ideas posts on pandemic risk and the role of the capital markets to transfer risk from the public sector.

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Factors Contributing to the Gap Between Economic and Insured Losses: Infographic on the factors that contribute to the gap between economic and insured losses.

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Guy Carpenter Asia-Pacific Climate Impact Centre Publishes Annual Report:  The report, covering the Centre’s activities during 2016, is divided into five sections.

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Guy Carpenter reports US Insurance Market at a Crossroads But Opportunity Exists: Guy Carpenter released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article >>


And, you may have missed….

China Risk Oriented Solvency System (C-ROSS): The China Insurance Regulatory Commission (CIRC) is instituting sweeping changes through its three-tiered China Risk Oriented Solvency System (C-ROSS) framework that will dramatically impact how (re)insurers conduct business.

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November 30th, 2017

Factors Contributing to the Gap Between Economic and Insured Losses

Posted at 1:00 AM ET

The factors that contribute to the gap between economic and insured losses.

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