January 22nd, 2019

Mw 6.7 Earthquake – Near Coquimbo, Chile

Posted at 5:14 PM ET

1_smallA magnitude (Mw) 6.7 earthquake was reported near Coquimbo, Chile around 01:32 UTC January 20, according to the U.S. Geological Survey (USGS). The epicenter was located at a depth of 53 km (33 miles) and about 15 km (9 miles) SSW of Coquimbo, Chile, between the regions of Atacama and O’Higgins. Media reports to date indicate variable damage to property and infrastructure, although impacts appear to have been limited by the resilient building codes in the area. Some disruption to transportation has also been reported, along with some impacts to infrastructure and numerous power outages. Continue reading…

January 22nd, 2019

Chart: Global Property Catastrophe ROL Index

Posted at 1:00 AM ET

The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

Composite 2015 YE

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January 22nd, 2019

GC Videocast - Global Risks Report 2019

Posted at 1:00 AM ET

John Drzik, President of Global Risk and Digital at Guy Carpenter’s sister company, Marsh, explains the key findings and takeaways from The Global Risks Report 2019. The 14th edition of The Global Risks Report is prepared by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

Continue reading…

January 21st, 2019

GC Capital Ideas Tip: New Option on Guy Carpenter’s Preference Center

Posted at 1:00 AM ET

We are pleased that GC Capital Ideas subscribers welcomed the launch of Guy Carpenter’s Preference Center, which allows users to sign up for a wider range of alerts that provide news and insights from Guy Carpenter thought leadership specialists.

We recently added a new option on the Preference Center: CAT-i. The CAT-i bulletins provide updates on significant natural catastrophe events worldwide; including tropical cyclone, earthquake, severe thunderstorm and flood events, as well as a discussion of impacts. Continue reading…

January 18th, 2019

Week’s Top Stories: January 12 - 18, 2019

Posted at 10:00 AM ET

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

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Balance Sheet Expansion: Opportunities and Challenges: From 2014 to 2017, the property and casualty (P&C) industry in the United States grew its collective capital position from USD 686 billion to USD 767 billion, a 3.8 percent compound annual growth rate. This expansion in capital was achieved during a period when the normalized return profile of the P&C underwriting business was considered to be below the cost of capital. The growth of industry capital during this period of subpar underwriting returns provides insights into the expectations for carriers’ opportunities and challenges through 2018 and into the years ahead.

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Top Financial and Professional Lines Risks in 2019: The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh.

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Global Risks Report: Heightened Geopolitical and Geoeconomic Tensions: Profound political, economic, societal, technological and environmental transformations are occurring at an unprecedented scale and pace and have become a part of day-to-day business life, according to the 14th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and other partners.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>


And, you may have missed …

Taiwan: Catastrophe Insurance and Gap in Coverage: Taiwan has experienced a series of extreme weather events in recent years, which are expected to continue into the future, says the report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

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January 17th, 2019

Guy Carpenter Announces New Division and Senior Appointments Designed to Deliver Enhanced Client Value

Posted at 9:41 AM ET

Guy Carpenter today announced the formation of a new Global Capital Solutions Group and a series of new leadership appointments related to the Jardine Lloyd Thompson Group plc (JLT) acquisition. These appointments will become effective upon closing of the transaction between Guy Carpenter’s parent company, Marsh & McLennan Companies, and JLT, which remains subject to the receipt of certain antitrust and financial regulatory approvals. Continue reading…

January 17th, 2019

Global Risks Report: Heightened Geopolitical and Geoeconomic Tensions

Posted at 1:00 AM ET

extreme-weather-2Profound political, economic, societal, technological and environmental transformations are occurring at an unprecedented scale and pace and have become a part of day-to-day business life, according to the 14th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and other partners.

This year’s report highlights a divided and disrupted world, characterized by heightened geopolitical and geoeconomic tensions, rising technological instabilities and increased environmental concern due to climate change. Continue reading…

January 16th, 2019

Top Financial and Professional Lines Risks in 2019

Posted at 1:00 AM ET

The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh. Continue reading…

January 15th, 2019

Cost of Capital and its Use in Valuing Reinsurance

Posted at 1:00 AM ET

Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Continue reading…