May 27th, 2011

Week’s Top Stories: May 21 - May 27, 2011

Posted at 10:00 AM ET

Summary of 2011 Hurricane Season Forecasts:  With the start of the Atlantic hurricane season just a few days away, Guy Carpenter has summarized the various forecasters’ predictions for the 2011 season. AccuWeather, the Colorado State University (CSU), the National Oceanic and Atmospheric Administration (NOAA) and Weather Services International (WSI) have released forecasts for the forthcoming season and there seems to be a general consensus that 2011 will see above-average activity with an increased risk of hurricane landfalls in the United States.

Read the article >>

Chart: Historical Evidence of the Inaccurate Estimation of Workers Compensation Losses: Loss reserves for WC are essentially forecasts of losses that will be paid over five, 10 and 15 or more years. As a result, they are one of the most challenging risks to quantify on balance sheets. Under standard reserving methods, an actuary examines historic data, measures existing patterns and makes forecasts based on the assumption that those patterns will repeat. Alternatively, an actuary can adjust the patterns for forecasted changes.

Read the article >>

GC Securities* 2011 Transactions:  We review here all 2011 GC Capital Ideas stories reporting GC Securities’ transactions.

Read the article >>

GC Securities*: Catastrophe Bond Market Surges to Record High for First Quarter Issuance: The catastrophe bond market posted its most active first quarter on record for new issuance in Q1 2011, according to a new report by GC Securities. Four transactions came to market in the first quarter of 2011, securing USD1.02 billion of new and renewal risk transfer capacity. This represents a significant increase over the USD300 million issued during the same time period in 2010.

Read the article >>

Marsh and RIMS Survey: Excellence in Risk Management VIII: According to Excellence in Risk Management VIII: Greater Expectations, Greater Opportunities, a new survey conducted by Marsh and the Risk and Insurance Management Society (RIMS), executives in the C-suite expect risk managers to step up and take a more active role in integrating enterprise-wide risk management with their organizations’ broader strategic goals.

Read the article >>

Most Popular Keyword:   integrating enterprise risk management

And, you may have missed…

Long Tail Liabilities and Reserve Volatility: Dynamic Reserve Model (DRMTM): The convergence of a variety of pressure points at this time is leading to a set of unique circumstances that present opportunities around business strategy and capital allocations for the insurance industry. Future inflation is one of the pressure points. Inflation and uncertainty about its extent and timing is a function of untested but powerful monetary and fiscal policy actions. In addition to inflation’s potential effect on insurer liability management there is also an impact on the volatility of assets backing the liabilities. A reignition of the kind of severe inflation last seen in the 1970s is most likely not factored into any current insurer management practices for establishing reserves or setting capital levels.

Read the article >>

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

* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Services Authority. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies, Inc. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

AddThis Feed Button
Bookmark and Share


Related Posts