April 3rd, 2012

Finding Success in a Transitioning Market - How Guy Carpenter Can Help: Part II

Posted at 1:00 AM ET

Portfolio Management

Guy Carpenter offers multiple tools for clients that are looking to implement portfolio management and enterprise risk management (ERM) strategies. Our tools focus on both natural and man-made catastrophes, and we work with clients to tailor the right short-term and long-term solutions.

A key element of portfolio management is the alignment of a firm’s capital management framework with catastrophe modeling output, so returns can be targeted down to the county, postal code or even location level. With this information, a firm can re-underwrite the “worst offenders” in the existing portfolio and target new areas for growth according to defined performance metrics. The portfolio management process is pursued through data management, portfolio assessment and portfolio optimization.

Predictive Analytics

The fact that the P&C markets are oversupplied, combined with incorrectly priced portfolios, makes adverse selection a feature of every portfolio. Until now there has been no way to detect and measure this despite the fact that the entire industry has been aware of the hidden presence. Guy Carpenter has partnered with EagleEye Analytics so our customers can utilize the power of the technological breakthroughs embodied in EagleEye’s Talon product. Talon provides a totally different view into P&C portfolios, providing our clients with new knowledge that can be easily exploited to grow business in a sustainable way.

Range of Customized Advisory Services

Guy Carpenter offers deep advisory expertise in areas that many clients will find useful in evaluating their risk exposure. Our rating agency service offers expertise in areas that help clients in their interaction with A.M. Best. The guidance includes support for evaluating current risk tolerances, catastrophe risk appraisal and advice on the interaction between the company and the rating agency. These services are supported by further offerings including capital advisory, strategic advisory, reserve risk modeling, ERM and reinsurance counterparty risk exposure. Our business intelligence unit also publishes regular analyses of industry issues, as well as bespoke research at the request of individual clients.

GC Securities* is a licensed broker dealer delivering a full spectrum of capital solutions including index-based risk transfer, insurance linked securities structuring and placement, M&A, collateralized reinsurance, debt, equity and hybrid financing. GC Securities is fully integrated with Guy Carpenter’s industry leading modeling, actuarial and advisory teams and works in close collaboration with our global broking network to source unique opportunities to help clients build sustainable growth.

Actuarial Expertise

GC Analytics‘ expertise and industry-leading modeling proprietary software can help carriers parameterize their portfolios, supplement their existing data with more from the industry and enhance model performance through additional technical knowledge and capabilities.

GC Analytics teams can also propose a number of tailor-made solutions to assist (re)insurers with their implementation of regulatory legislation, such as Solvency II. These solutions are targeted and specific, ensuring they are achievable and deliver measurable value.

Click here to read Part I >>

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*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. 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. Cory Anger and Chi Hum are registered representatives of MMC Securities Corp.

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