As always, our immediate thoughts and concerns are with those directly affected by Sandy, both in North America, and across the Caribbean. Many areas along the East Coast, and the Caribbean, bear signs of unspeakable consequences from this historic storm. The death toll in North America is now at least 55 (including one in Canada), in addition to the 67 who died in the Caribbean last week.
Archive for October, 2012
James Waller, PhD, Research Meteorologist
In recent weeks there has been considerable media attention towards a developing El-Niño climate pattern and the summer’s record low polar sea-ice. Naturally, these developments raise questions from insurers that want to know how climate works to influence their portfolio results.
Powerful Portfolio Planning and Point-of-Sale Capabilities Help Insurers Set Strategy and Drive Profitability
Subhashish Dutta, Head of Global Research and Development and Thomas Clift, Managing Director
GC ProfitPoint+ SM, unveiled this week by Guy Carpenter, delivers powerful portfolio planning and point-of-sale capabilities allowing insurers to set, calibrate and monitor risk management strategy. A single, easy-to-use solution, it enables line underwriters and agents to make informed decisions about individual policies by drawing on the robust analytical capabilities and insurance industry insight of Guy Carpenter. It crystallizes the business results of portfolio strategy that would otherwise take insurers weeks to analyze.
October 31, 2012: In 2011, Thailand experienced its worst flooding in years, which severely damaged and disrupted manufacturing operations in seven large industrial parks. Due in large part to the significant concentration of insured values in these parks, total insured loss from the 2011 flood is estimated to be in the range of USD15 to USD20 billion. In light of the disproportionate contribution of losses from industrial estates to overall insured loss, Guy Carpenter & Company has developed a database of industrial parks in Asia to help clients better identify and evaluate potential risks in the region.
Sandy made landfall on Monday October 29, at about 8PM EDT (00:00 UTC October 30), as a powerful post-tropical cyclone or “frontal system.” Maximum sustained winds at landfall were 80 mph, with a minimum pressure of 946 mb. Sandy made landfall just south of Atlantic City, New Jersey, but its effects were and continue to be felt as far away as Maine, Lake Michigan, and Tennessee. The Northeast has not seen a storm of this size or intensity in recorded history. Sandy was different from Irene (2011) because of its size, intensity, approach to the coast and structure.
Paul Silberbush, Managing Director
Capital models are becoming more and more “embedded” into property and casualty (re)insurers’ business processes. These models are typically constructed with two distinct and often contrasting purposes: 1) measuring capital for rating agency and/or regulatory requirements and 2) risk management and strategic business planning.
October 30, 2012: At the time we were publishing our 2011 Asia Pacific Catastrophe report, there was a growing realization that losses from the Thai flooding ongoing at the time were going to be significant. The Thai flood losses came at the end of a run of losses in the Asia Pacific region that were large, unprecedented in recent times and possibly unexpected by many market participants.
Hurricane Sandy has continued to intensify to a 940 mb storm, with 90 mph winds, and expected landfall between coastal Delaware and Atlantic City. Sandy is a category-1 hurricane on the Saffir-Simpson scale, and approaching category-2 status. This is a dangerous, large and historic storm, posing a greater threat than Irene (2011). Storm force winds extend outward over 450 miles.
Guy Carpenter announced the release of GC ProfitPoint+ (1), an integrated portfolio management solution designed to help insurance companies improve profitability, enhance underwriting performance and drive growth.
October 29, 2012: In 2011, Thailand experienced its worst flooding in years, leaving more than 800 people dead and causing severe damage across northern and central regions of the country. The floods, lasting a few months, severely damaged and disrupted manufacturing operations in Thailand. Flooding also forced seven huge industrial estates in central regions to close, causing damage to the industrial sector in the billions of U.S. dollars. It is interesting to note that prior to 2011, none of the industrial parks in Thailand had been flooded over the past 40 years. During the last major flood in 1995, the dykes in the industrial parks kept floodwaters out. In last year’s flooding, however, heavy machinery was reportedly not brought in to raise the height of dykes for fear of damaging them and instead sandbags were used, which ultimately gave way to the floodwaters.