2Q 2010: Recap of Natural Catastrophe Events: Reviews Hurricane Alex, floods in Southeast France and in Central and Eastern Europe, severe weather in the United States, earthquakes in China and Mexico.
TRIA, U.S. Terrorism and International Terrorism: Effect on the Insurance and Reinsurance Markets: We excerpt here from the recently published Marsh report: Terrorism Risk Insurance 2010, the section authored by Guy Carpenter’s Emil Metropoulos. Commercial insurers are strongly supportive of the Terrorism Risk Insurance Act of 2002, as it provides them an ultimate safety net for their terrorism exposures. However, the residual risk for terror events retained by insurers below the triggers and retention levels set by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), coupled with the relatively high cost of reinsurance in key exposure zones, means that insurers remain cautious about terrorism exposure. As a result, they continue to avoid accumulating high-profile urban exposures.
Tropical Storm Bonnie: Tropical Storm Bonnie, the second named storm of the 2010 Atlantic hurricane season, developed on July 22 and is currently located approximately 155 miles southeast of Miami in Florida, according to the National Hurricane Center (NHC). Bonnie packs sustained winds of around 40 mph. The storm is traveling in a west-northwest direction and this general motion is expected to continue for the next 24 hours as the storm slightly strengthens. The NHC said tropical storm-force winds extend 85 miles from the center of the storm.
2Q 2010: Recap of Man-made Catastrophe Events: Reviews plane crash, Tripoli, Libya; explosion and fire at offshore oil rig, Gulf of Mexico; coal mine explosion, Virginia.
Risk Management is Key to Driving Success in Global Environment: Marsh Risk Consulting: The dynamic global environment requires that businesses become more adept at understanding and managing their emerging risks. In the process, they may need to make fundamental changes in how they do business that translate into greater success, according to Mathew B. Allen, Global Practice Leader, Enterprise Risk Services & Solutions, for Guy Carpenter sister company, Marsh Risk Consulting.
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GC Videocast - Risk Tolerance Influences Economic Capital: Guy Carpenter’s Global Chief Economist Joan Lamm-Tennant describes how economic capital is a function of the risk profile that comes from simulation based models, but it also requires knowing the company’s risk tolerance. She reviews how hedging frees up the need for economic capital and reduces volatility.