Casualty Cat Part I: Casualty Catastrophe Risk Modeling: Casualty catastrophes have become increasingly frequent and severe over the past decade, exposing (re)insurers to much more risk than they may realize. One root cause can trigger a chain reaction that can bleed balance sheets and even imperil solvency. Until recently, casualty carriers had little choice but to accept this risk. The maturation of Enterprise Risk Management (ERM) practice and the development of new casualty-specific catastrophe models, though, signal a change.
This week’s topics include:
- Omnibus Insurance Bill Passes House and Senate
- Rate Deregulation Property Insurance Bill Passes House and Senate
- Citizens Property Insurance Corporation (”Citizens”) to Sell USD2 Billion in Bonds
- Sinkhole Bill Passes House and Senate
Risk Profile, Appetite, and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness: Prior to the recent turbulence in the financial markets, insurers and reinsurers were increasing their use of Enterprise Risk Management (ERM) to make risk and capital management decisions. While this was driven in part by rating agencies and regulators, many carriers began to recognize the value of metric-based frameworks and capital models in evaluating their portfolios.
Where Are We on Solvency II?: Solvency II will require insurers and reinsurers domiciled in the European Economic Area (EEA) to assess their regulatory capital requirements within a forward-looking risk sensitive framework. Solvency II has reached a decisive point in its development, as the focus moves to how the directive will be implemented in practice and how it will shape the competitive landscape of the insurance industry.
Visualize, Understand, and Manage Workers Comp Cat Risk with i-aXs®: Workers compensation risk accumulations can creep up on you. On their own, single insureds may not pose problems. The existence of other risks in your portfolio within the same area can result in disproportionate exposure. A single earthquake, terrorism strike, or industrial accident could trigger substantial insured losses, rapidly depleting capital and impairing company earnings.
Most Popular Keyword: World Rate on Line (ROL) Index
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H1N1 Swine Flu Emerging Slowly: The recent H1N1 swine flu outbreak has garnered considerable attention, but evidence that the outbreak will become a statistically significant pandemic event remains sparse. As of May 6, 2009, there have been 1,516 cases confirmed globally by the World Health Organization (WHO), with 30 fatalities. Consequently, H1N1 has shown a lethality rate of only 1.98 percent. While any loss of life is tragic, the implications of swine flu have not reached pandemic proportions.
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