Florida Renewal up 15%, Follows the Global Trend: Property-catastrophe reinsurance rates increased by 15 percent at the Florida-centric June 1, 2009 renewal — compared to a 15 percent decline a year ago. Capacity was more limited than in recent years — however, still adequate to complete renewals.
RISK-i Update: Air France Missing over Atlantic Ocean: An Air France plane carrying 228 passengers and crew on an international flight has vanished over the Atlantic Ocean after hitting heavy turbulence, according to airline officials. Reports said the aircraft was carrying 216 passengers and 12 crew members, including three pilots.
GC ForeCat May Update: 2009 U.S. Hurricane Landfall Rates: The fifth and final 2009 GC ForeCat update was released on May 26, 2009 and is unchanged from the last update. According to the May update, the Gulf region remains most vulnerable to tropical cyclones coming shore in the United States in 2009.
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.
Rates Up on Tightening Capacity at U.S. 4/1 Prop-Cat Renewal: Reinsurance rates continued to increase for the U.S. property-catastrophe reinsurance market at the April 1, 2009 renewal, extending the trend that began at the beginning of the year. National programs were up 10 percent to 14 percent on a risk-adjusted basis, with those in the Northeast seeing 6 percent to 8 percent increases. This compares to a reinsurance rate increase of 11 percent on average at the January 1, 2009 renewal.
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History of Microfinance: By most accounts, the modern microfinance movement began in Bangladesh more than 25 years ago, with the official opening of Grameen Bank in 1983. This institution and its revolutionary “double bottom-line”, “social business” practices remains 95 percent owned by its poor clients and has had lasting effects on the microfinance industry and on economic development efforts in general.
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