Archive for January, 2013



January 31st, 2013

Criminal Liability of Companies Under Spanish Law: What is the Real Impact on Directors & Officers Coverage?

Posted at 1:00 AM ET

Recent Trends

The financial crisis has triggered a number of criminal investigations against companies and their directors. In light of these developments, this section provides an overview of the recently introduced Spanish regulation concerning criminal liability of companies and the real impact this reform will have on directors and officers (D&O) policies.

Continue reading…

January 30th, 2013

Capital Model Trends

Posted at 1:00 AM ET

Here we highlight recent stories that have appeared on GC Capital Ideas discussing trends around capital models. 

Continue reading…

January 29th, 2013

Swiss Supreme Court: Scope of Ban on Retroactive Insurance

Posted at 1:00 AM ET

Introduction

The current Swiss Insurance Contract Act (Versicherungsvertragsgesetz, VVG) prohibits retroactive insurance. Therefore, an insurance contract is usually void if the risk no longer exists or the feared event has already occurred before the contract is concluded (Article 9 VVG).

Continue reading…

January 28th, 2013

GC Capital Ideas Stories on Emerging Markets

Posted at 1:00 AM ET

GC Capital Ideas has published several stories recently on emerging markets and how pursuit of them may contribute to profitable growth. We highlight several of the articles here.

How Guy Carpenter Can Help: Catastrophe Risks in Developing Economies: Guy Carpenter is uniquely positioned to help clients successfully grow their business in emerging markets. Our GC Global Analytics and Advisory team offers services and solutions that include industry-leading risk analytics, strategic and technical advice and capital advisory.

Read the article >>

 

Increased Flood Loss Potential: Making use of all available tools and practicing comprehensive exposure management will both strengthen (re)insurers’ ERM practices and allow them to make informed risk management and reinsurance decisions as they enter new markets. Certainly, flood risk is prevalent and increasing in almost every developing economy. Recent studies by Swiss Re and the Organisation of Economic Co-operation and Development suggest flood loss potential will grow as emerging economies continue to prosper.

Read the article >>

 

Flood Risks in Emerging Markets: Despite such important model limitations for earthquakes, the lack of modeling solutions for flood risks poses an even greater threat to (re)insurers. As illustrated by Figure 7 below, flood risk is poorly modeled at a global level by the three main modeling companies, particularly in developing countries where flooding is a regular occurrence.

Read the article >>

 

Catastrophe Models: Implications of Emerging Market Growth on the (Re)insurance Sector: Natural disaster risk assessment relies on probabilistic catastrophe models and historical data. The three main catastrophe modeling companies, AIR Worldwide, EQECAT and Risk Management Solutions, have therefore traditionally created modeling solutions for perils and territories considered to be peak risks. Although each modeling company has in recent years launched products for countries outside the more established markets of the United States and Western Europe, several gaps in coverage remain, particularly in emerging markets.

Read the article >>

 

Implications of Emerging Market Growth: ERM: Although improvements in ERM practices meant (re)insurers were better prepared for the major catastrophes of 2010 and 2011 than those in 2005, the global nature of these losses has prompted some companies to review their perception of risk. This international loss trend, along with insurance growth in emerging market regions, is driving the need for better and more comprehensive tools for modeling risk.

Read the article >>

 

Click here to read additional stories about emerging markets >>

 

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

January 25th, 2013

Week’s Top Stories: January 19 - 25, 2013

Posted at 12:46 PM ET

Chart: Global Significant Insured Losses, 2011 to Q4 2012: 2012 insured losses in aggregate were “normal.”

View the chart >>

 

Chart: Long-Term Evolution of Shareholders’ Funds, 1998 to Q3 2012: Dedicated reinsurance capital was at a record high immediately prior to Superstorm Sandy.

View the chart >>

 

Chart: U.S. and Bermuda Property-Casualty M&A Activity, 2004 to 2012: For the property and casualty sector, market consolidation was at the periphery.

View the chart >>

 

January 1, 2013 Renewals Bring Stable Reinsurance Pricing: Guy Carpenter reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. In its 2013 global renewal report, The Route to Profitable Growth, Guy Carpenter finds that the January 1, 2013, renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility. The market was supported by a combination of factors including lower than normal catastrophe losses during the first nine months of 2012, new reinsurance capacity and record-high levels of capital.

Read the article >>

 

Terrorism Risks: Guy Carpenter Solutions: Guy Carpenter offers a comprehensive suite of tools to help clients manage their terrorism risks. i-aXs®, our web-based data management platform, allows insurers to quantify their exposure to a potential terrorist attack and highlight concentrated areas in their portfolio. Managing exposure to terrorism loss is an integral function within i-aXs, with several different tools on offer to help insurers assess their largest levels of accumulation.

Read the article >>

 

Most Popular Keyword:  severe inflation clause

 

And, you may have missed…..

GC Videocast - Risk Tolerance Influences Economic Capital (Joan Lamm-Tennant) 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.

Read the article >>

 

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

January 24th, 2013

Chart: U.S. and Bermuda Property-Casualty M&A Activity, 2004 to 2012

Posted at 1:00 AM ET

For the property and casualty sector, market consolidation was at the periphery.

Continue reading…

January 23rd, 2013

Chart: Global Significant Insured Losses, 2011 to Q4 2012

Posted at 1:00 AM ET

2012 insured losses in aggregate were “normal.”

Continue reading…

January 22nd, 2013

Chart: Long-Term Evolution of Shareholders’ Funds, 1998 to Q3 2012

Posted at 1:00 AM ET

Dedicated reinsurance capital was at a record high immediately prior to Superstorm Sandy.

Continue reading…

January 21st, 2013

Terrorism Risks: Guy Carpenter Solutions

Posted at 1:00 AM ET

Guy Carpenter offers a comprehensive suite of tools to help clients manage their terrorism risks. i-aXs®, our web-based data management platform, allows insurers to quantify their exposure to a potential terrorist attack and highlight concentrated areas in their portfolio. Managing exposure to terrorism loss is an integral function within i-aXs, with several different tools on offer to help insurers assess their largest levels of accumulation.

Continue reading…

January 18th, 2013

Week’s Top Stories: January 12 - 18, 2013

Posted at 10:30 AM ET

Terrorism: Merits of Reinsurance Protection: Although the need for the Terrorism Risk Insurance Program Reauthorization Act of 2007 is clear, reinsurance protection can help companies withstand the non-renewal or alteration of the program. Indeed, even though the federal backstop currently remains in place, some insurers have decided to further protect their balance sheet with reinsurance protections.

Read the article >>

 

January 1, 2013 Renewals Bring Stable Reinsurance Pricing:  Guy Carpenter reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. In its 2013 global renewal report, The Route to Profitable Growth, Guy Carpenter finds that the January 1, 2013 renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility. The market was supported by a combination of factors including lower than normal catastrophe losses during the first nine months of 2012, new reinsurance capacity and record-high levels of capital.

Read the article >>

 

Risk Profile, Appetite and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness: Prior to the recent turbulence in the financial markets, insurers and reinsurers were increasing their use of enterprise risk management to make risk and capital management decisions. While this was driven in part by rating agencies and regulators, many carriers began to recognize the value of metric-based frameworks and capital models in evaluating their portfolios.

Read the article >>

 

Chart: Guy Carpenter Global Rate on Line Index, January 2013: The Guy Carpenter Global Property Catastrophe Reinsurance Rate on Line (ROL) index fell marginally at the January 1, 2013, renewal. This is the seventh consecutive annual renewal in which changes to the index have equaled 10 percent or less, indicating a global market with capacity appropriate to meet demand.

Read the article >>

 

Indexation Clauses in Liability Reinsurance Treaties: A Comparison Across Europe: The indexation clause - otherwise referred to as the stability clause, inflation clause or severe inflation clause - is designed to maintain the real monetary value of the retention and (where applicable) the limit under a long-tail excess of loss reinsurance treaty over the duration of the claims payout pattern.

Read the article >>

 

Most Popular Keyword:  severe inflation clause

 

And, you may have missed…..

History of Microfinance:  By most accounts, the modern microfinance movement began in Bangladesh more than 25 years ago, with the official opening of Grameen Bank in 1983. This institution and its revolutionary “double bottom-line,” “social business” practices remains 95 percent owned by its poor clients and has had lasting effects on the microfinance industry and on economic development efforts in general. Grameen Bank was profitable for 22 of its first 25 years of existence and has helped 65 percent of its clients’ families to exit poverty.

Read the article >>

 

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