Guy Carpenter: January 2012 Reinsurance Renewal - Property Overview: The events of 2011 had a significant impact on property renewals at January 1, 2012. The approach to the property market, particularly property catastrophe business, has evolved significantly since Hurricane Andrew with the gradual incorporation of technical and model-based underwriting. There is evidence at this renewal that another subtle shift has taken place.
Guy Carpenter: January 2012 Reinsurance Renewal: US Property Pricing: While the United States did not experience a single large cat event in 2011 as occurred in some other regions, there was a high frequency of events that impacted many companies. In addition, the release of RMS v11 had an extreme effect on modeled results for many companies, leaving the United States just as exposed to the shifting market as elsewhere.
Cruise Ship Grounding, Italy: At least six people died after a luxury cruise ship carrying 4,229 passengers and crew ran aground off the Italian west coast on January 13 in calm weather conditions. Italian, Spanish, German, French, British and American nationals were reported to be among the 3,200 passengers on board the vessel. The 290-meter-long Costa Concordia was on a trip around the Mediterranean when it hit rocks near Isola del Giglio off the Tuscan coast, ripping a hole in its hull and prompting a major rescue operation.
Renewals Reveal Shift in Industry Behavior: The January 1, 2012, renewals saw a shift in industry behavior as both insurers and reinsurers implemented more sophisticated, customized approaches to risk assessment and mitigation, according to Guy Carpenter. In its 2012 global reinsurance outlook, Catastrophes, Cold Spots and Capital: Navigating for Success in a Transitioning Market, Guy Carpenter reported that reinsurers were in a position to undertake a major review of pricing and underwriting going into the renewal season. This led to significant market fragmentation and increased market volatility at January 1.
Guy Carpenter’s January 2012, Reinsurance Renewal Report: Executive Summary: The (re)insurance sector experienced historic catastrophe losses in 2011, many in areas not previously considered ‘peak’ risks. Devastating earthquakes in Japan and New Zealand, floods in Thailand and Australia and a record-breaking tornado season in the United States contributed to insured losses in excess of USD100 billion. As carriers continue to penetrate new growth regions, ‘cold spot’ losses are expected to increase.
Most Popular Keyword: risk profile
And, you may have missed…
Flooding: The Possible Changes Under Global Warming: Flood events often occur rather suddenly so there may not be enough time to implement disaster mitigation measures. A good understanding of the causes of individual floods is therefore crucial in increasing the lead time for issuing warnings. From the insurance perspective, such an understanding could provide a better estimate of the possible losses. With global warming being a reality, it would also be of importance to estimate how the frequency of occurrence of flood events may change.