Archive for May, 2009



May 26th, 2009

Climate Change, Part II: What a Warmer World Could Mean

Posted at 7:00 AM ET

klein_chris_bioChristopher Klein, Head of Global Business Intelligence
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The scientific debate wrestles over both causation and existence of climate change. Putting aside any particular political stance, it behooves carriers to examine what could happen should the world indeed be getting warmer. Without getting wrapped up in scare tactics or predictions of worst-case scenarios, the potential impact of climate change can be examined to determine possible points of liability and loss for the (re)insurance industry. If temperatures do rise, the potential effect on a realm of issues — including property damage, health, security, and the economy — could change the way (re)insurers conduct certain areas of their business.

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May 26th, 2009

Shareholders’ Funds Gain Masks Market Conditions

Posted at 1:00 AM ET

David Flandro, Senior Vice President
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Reinsurers have attained aggregate shareholders’ funds of USD92.8 billion, as measured by the Guy Carpenter Global Reinsurance Composite. This represents an increase of 4.6 percent from the fourth quarter of 2008. Excluding the effects of securities reclassifications and revaluations — and reserve releases — actual growth is a much lower 1.4 percent for the first quarter of 2009.

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May 26th, 2009

Chart: Reinsurer 1Q2009 Adjusted Capital Changes

Posted at 12:59 AM ET

small-tj-chart-5_18_09

The 4.6 percent increase may obscure the economic reality underlying the market. Securities reclassifications and revaluations contributed substantially to the first quarter 2009 shareholders’ funds gain. Absent these effects, the Guy Carpenter Global Reinsurance Composite grew only 1.7 percent, and the exclusion of 2008 reserve releases reported in the first quarter of 2009 reduces shareholders’ funds growth to only 1.4 percent.

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May 25th, 2009

Climate Change, Part I: A Contested Point You Need to Understand

Posted at 1:00 AM ET

klein_chris_bioChristopher Klein, Head of Global Business Intelligence
Contact

Climate change is happening. Or is it? It is caused by human action. Or is it? The arguments are bantered back and forth in a crossfire of disagreement over an issue that holds political, social, and emotional significance around the world. For every position there are sympathetic experts willing to present supporting evidence, which, in turn, is inevitably skewered by those holding a contrary view.

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May 22nd, 2009

CAT-i Update: Severe Weather in Eastern Australia

Posted at 10:33 AM ET

cat-i-australia-smallParts of eastern Australia have been declared disaster zones after severe storms forced at least 15,000 people to evacuate their homes. The states of Queensland and New South Wales were battered as powerful winds of up to 130 kmph (80 mph) tore roofs from houses and flood waters cut off entire towns, reports said. The Australian Bureau of Meteorology (BoM) said the powerful winds and heavy rain are forecast to continue into the weekend. The Insurance Council of Australia said the severe weather has triggered 1,500 claims so far but the number is expected to rise if the adverse weather conditions persist.

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May 22nd, 2009

Week’s Top Stories: May 16 - 22, 2009

Posted at 1:00 AM ET

Florida Insurance Roundup: May 11 — 17, 2009: This week’s topics include:

  • Florida Governor Receives Four Bills for Signature
  • FHCF Update: Bonding Estimates and Rule Decisions
  • Citizens Update: Rate Filings, Disputed Claims Forms, and Commercial Lines Policies
  • Read the article >>

    Lloyd’s 2008 Results — Resilience in a Tough Market: Lloyd’s of London (”Lloyd’s”) competitive position strengthened in 2008, largely because of effective risk management oversight and relatively conservative investment allocation. The capital structure has proved resilient in the face of the worldwide financial catastrophe and financial strength ratings remain strong and stable. As a result, Lloyd’s is well-positioned to benefit from current market dislocation.

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    Capital Management Strategies Forced to Mature: As with everything that happened last year, the (re)insurance industry’s 2008 full-year financial results are open to interpretation. One could focus on the Guy Carpenter Global Reinsurance Composite’s shareholders funds decline of USD19.7 billion — not to mention a total net loss of USD6.1 billion — or zero in on the fact that most of this came from unrealized investment losses and note that most companies showed underwriting profits.

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    May 21st, 2009

    Solution Spotlight: i-aXs Workers Comp

    Posted at 1:01 AM ET

    p_sidebar_iaxsWhat would instant access to your data mean to you? What if you could quickly modify analyses to better evaluate your changing business concerns? With the rating agencies and your management asking you to identify and quantify the potential costs of your largest workers compensation terrorism, earthquake, and industrial accident accumulations, imagine the ability to drill deeper, reach new insights, and take better control over your information. Get connected to i-aXsGuy Carpenter’s web-enabled data delivery platform — and put yourself on the fast track to making informed business decisions by interacting with your data instead of relying on static reports.

    Download the fact sheet >>

    May 21st, 2009

    Casualty Cat Series Index

    Posted at 12:59 AM ET

    Casualty Cat Part I: Casualty Catastrophe Risk Modeling >>

    Casualty Cat Part II: Tracking Integrated, Intricate Risks >>

    Casualty Cat Part III: Enterprise-Wide Evaluation >>

    Casualty Cat Part IV: Casualty Cat Exposes Exposure >>

    Casualty Cat Part V: Case Study >>

    Casualty Cat Part VI: Enterprise Protection, Capital Optimization >>

    May 20th, 2009

    GC Capital Tip: Share Your Favorite Articles

    Posted at 5:00 PM ET

    Did you find a story on GC Capital Ideas to be particularly useful? Let your colleagues know. “Social bookmarking” has become popular, with internet users flagging the articles they find most helpful. You can “socially bookmark” articles on GC Capital Ideas in a few simple steps. At the bottom of every article, you’ll see a button that says, “Share.” Click it, and look for your preferred social bookmarking website, such as LinkedIn, Delicious, or Technorati. If you aren’t registered with one of these sites, you’ll be prompted to do so (which doesn’t take long). Then, just log in, and label your favorite articles from GC Capital Ideas.

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