November 13th, 2018

A Math Formula May Offer a Solution to Insurers’ Critical Challenges

Posted at 1:00 AM ET

Guy Carpenter has developed a methodology that applies a mathematical formula to provide insurers and reinsurers with a unified, practical framework for risk pricing and capital allocation.

Continue reading…

November 12th, 2018

Increasing Frequency of Extreme Weather Events in Asia Pacific

Posted at 1:00 AM ET

_offset_472526_smallThe Asia Pacific may be the most adversely impacted region by the pronounced increase in the frequency of extreme weather events around the world. The Guy Carpenter Asia-Pacific Catastrophe Report 2017 projects an increase in economic losses from natural disasters in Asia, which amounted to USD 126 million a day between 2006 to 2015 (1).

Continue reading…

November 9th, 2018

Week’s Top Stories: November 3 - November 9, 2018

Posted at 10:00 AM ET

Silent Cyber Explained: “Silent cyber,” also known as unintended or non-affirmative coverage, refers to the unknown or unquantified exposures stemming from cyber perils that may be triggered within traditional property and liability insurance policies. The systemic nature of the cyber risk means silent cyber may become increasingly more prevalent in virtually every type of insurance policy.

Read the article >>

Evolving Terror Threats - Innovation Needed to Meet Changing Demands: New modes of attack are causing a shift from large terrorist events aimed at property destruction to less sophisticated attacks causing mass casualties and fear. With global commerce, tourism and financial markets impacted, demand is growing for modeling, capacity and protection-gap solutions to increase resiliency against such attacks.

Read the article >>

Facultative or Treaty and Why the Need for Hybrid Solutions: Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore up capital and satisfy rating agencies, according to Jeff Fleming, Managing Director, Guy Carpenter.

Read the article >>

Solutions for Improving Profitability in the Commercial Auto Liability Line: One of the major factors affecting property/casualty industry profitability in the United States in recent years has been the poor performance of the commercial auto liability (CAL) line. On both a Calendar and Accident Year basis, industry CAL underwriting results have been deteriorating for the past decade. Accident Year combined ratios have been above 105 percent since 2010, and carriers are feeling the pressure to reverse this trend. Related lines of business such as umbrella, have also felt the adverse effects of challenging loss trends driven by CAL. It is an open question regarding which will arrive first: autonomous cars and trucks or underwriting profits for CAL writers, believes Nick Durant, Managing Director, Guy Carpenter.

Read the article >>

Baden-Baden Reinsurance Symposium Explores Market Impact of Global (Re)insurance Composites: Guy Carpenter hosted the Reinsurance Symposium in Baden-Baden on October 21, the 10th year that Guy Carpenter has hosted the event. The theme of the Symposium was “Back to the past: a return to global composites.”

Read the article >>

And, you may have missed..

Recent Thought Leadership from Guy Carpenter – North America Focus: Here we present a recap of recent thought leadership from Guy Carpenter focusing on important insurance and reinsurance topics in North America.

Read the article >>

Click here to register to receive e-mail updates >>

November 8th, 2018

Silent Cyber Explained

Posted at 1:00 AM ET

“Silent cyber,” also known as unintended or non-affirmative coverage, refers to the unknown or unquantified exposures stemming from cyber perils that may be triggered within traditional property and liability insurance policies. The systemic nature of the cyber risk means silent cyber may become increasingly more prevalent in virtually every type of insurance policy.

Fundamentally, silent cyber arises from policies that may not explicitly provide a cyber coverage grant or from a cyber exclusion that is poorly worded or unclear. The “gray area” of where liability lies can also arise if insuring agreements are satisfied but the insurer did not price for or contemplate loss scenarios originating from a cyber peril.

For example, a commercial building with a property insurance policy suffers a cyber-attack that leads to a structure fire, which in turn damages the building’s HVAC system; and the event results in disruption in occupancy and use for several weeks. If the building’s insurance policy has no explicit cyber coverage or exclusions or the exclusion for cyber is ambiguous, it can create a gray area about coverage. On the other hand, if the building has cyber insurance that covers the damage to the server, and property insurance that covers the damage to the property, then it may lead to questions over which policy covers the damage to HVAC and which one applies to the business interruption.

Guy Carpenter has best-in-class capabilities and has placed over 30 stand-alone and blended cyber programs globally that protect against non-affirmative silent cyber.

Click here to register to receive e-mail updates >>

November 7th, 2018

Recent Thought Leadership from Guy Carpenter – Asia Pacific Focus

Posted at 1:00 AM ET

Here we present a recap of recent thought leadership from Guy Carpenter focusing on important insurance and reinsurance topics in Asia Pacific.

You may also want to read

Click here to register to receive e-mail updates >>

November 6th, 2018

Evolving Terror Threats - Innovation Needed to Meet Changing Demands

Posted at 1:00 AM ET

New modes of attack are causing a shift from large terrorist events aimed at property destruction to less sophisticated attacks causing mass casualties and fear. With global commerce, tourism and financial markets impacted, demand is growing for modeling, capacity and protection-gap solutions to increase resiliency against such attacks.

Continue reading…

November 5th, 2018

Recent Thought Leadership from Guy Carpenter – North America Focus

Posted at 1:00 AM ET

Here we present a recap of recent thought leadership from Guy Carpenter focusing on important insurance and reinsurance topics in North America.

Continue reading…

November 2nd, 2018

Week’s Top Stories: October 27 - November 2, 2018

Posted at 10:00 AM ET

Escalating Threat of Cyber Terrorism: The WannaCry and NotPetya cyber-attacks illustrated the magnitude of the damage that cyber-attacks can cause. These two attacks affected organizations in more than 150 countries, prompted business interruption and other losses estimated at well over USD 300 million by some companies, brought reputational damage and resulted in loss of customer data.

Read the article >>

Facultative or Treaty and Why the Need for Hybrid Solutions - GC@PCI Commentary: Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore up capital and satisfy rating agencies, according to Jeff Fleming, Managing Director, Guy Carpenter.

Read the article >>

Life: Emerging Competition and the Need to Remake the Reinsurance Relationship - GC@PCI Commentary: The life reinsurance sector has been shrinking for several years, but reinsurers possess the capabilities to remain relevant and vital if they take a strategic approach. They may then be able to better meet their cedents’ principal needs and solidify or increase their value to life insurers, according to David Rains, Managing Director, Guy Carpenter.

Read the article >>

Mortgage Credit Risk Transfer Market – Expanding Growth Opportunities - GC@PCI Commentary: Fannie Mae and Freddie Mac – government-sponsored entities (GSEs) in the United States – purchase hundreds of thousands of mortgage loans and assume the risk of mortgage credit default, interest rate volatility and prepayment. The GSEs began transferring mortgage credit default risk only in the last few years. The organizations are now programmatically using (re) insurance to transfer that credit risk and plan to continue to do so. (Re)insurers seeking growth may look to this market as a diversifying risk with several different options available –market changes and safeguards in place make it even more viable, according to John Tedeschi, Executive Vice President, Guy Carpenter.

Read the article >>

The Transformation of Australian and New Zealand life insurance - GC@SIRC Commentary: The life insurance industry in Australia is facing unprecedented challenges from forces within and from the effects of an increasingly globalized economy. As life industry profitability has declined in Australia in recent years, the underlying manufacturing business model is rapidly changing, according to Matthew Rose, Managing Director, Guy Carpenter.

Read the article >>

And, you may have missed..

Solutions for Improving Profitability in the Commercial Auto Liability Line - GC@PCI Commentary: One of the major factors affecting property/casualty industry profitability in the United States in recent years has been the poor performance of the commercial auto liability (CAL) line. On both a Calendar and Accident Year basis, industry CAL underwriting results have been deteriorating for the past decade. Accident Year combined ratios have been above 105 percent since 2010, and carriers are feeling the pressure to reverse this trend. Related lines of business such as umbrella, have also felt the adverse effects of challenging loss trends driven by CAL. It is an open question regarding which will arrive first: autonomous cars and trucks or underwriting profits for CAL writers, believes Nick Durant, Managing Director, Guy Carpenter.

Read the article >>

Click here to register to receive e-mail updates >>

November 1st, 2018

GC Capital Ideas Tip: New Email Alert

Posted at 7:00 AM ET

In line with the launch of our Preference Center, GC Capital Ideas has also adopted a new email alert look-and-feel, which aims to optimize our readers’ and clients’ user experience with us.  The enhancements offered by Preference Center and the new email alerts are part of Guy Carpenter’s integrated strategy to empower readers with the informative and actionable insights that Guy Carpenter provides.

Click here to register to receive e-mail updates >>