Archive for January, 2014



January 31st, 2014

Week’s Top Stories: January 25 – 31, 2014

Posted at 8:00 AM ET

Chart: U.S. Property Catastrophe Reinsurance Quoting Behavior: The January 1, 2014 average quote across all programs is represented by the line at 0 percent, while the red dots indicate reinsurers’ distances from the mean across all the programs that they quoted. The size of the line represents the variability from the average for all quotes provided by the reinsurer. Each reinsurer is represented across the bottom of the chart by its A.M. Best rating. Quotes representing non-concurrent terms were excluded.

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Chart: Pension Fund Capital Under Management and Allocations into Reinsurance: The illustration shows pension funds alone are worth around USD30 trillion. Based on Guy Carpenter’s analysis of possible capital allocation percentages to the (re)insurance space in consultation with sector experts, a maximum of USD900 billion of this amount could potentially be available for insurance-linked investments. This figure is, of course, much greater than currently needed, demonstrating the existing convergence-driven supply excess. Given Guy Carpenter estimates global property catastrophe limit is currently in excess of USD300 billion, and the insurance linked securities market only accounts for around 15 percent of this amount, pension funds have so far made very small investments in reinsurance relative to their overall size.

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Chart: European Property Catastrophe - Typical ROL Changes: The chart compares changes at January 2014 with January 2013.

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Chart: Casualty - Typical Excess of Loss Rate Changes: The chart presents rate changes for the January 2014 and the January 2013 renewals.

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Chart: Regional Property Catastrophe ROL Index: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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And, you may have missed

January 2014 Renewal Report: Capacity: Evolution, Innovation and Opportunity: The January 1, 2014 renewal saw rates on line fall significantly in nearly all regions and business segments as relatively low loss experiences, strong balance sheets and an influx of capital spurred competition and innovation in the reinsurance market. This culminated in a marketplace focused on meeting individual client needs as reinsurers reacted to the challenge posed by alternative markets and alternative markets, in turn, sought to deliver unique solutions. Insurers also looked to capitalize by adapting their buying strategies and prioritizing their risk transfer goals.

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January 30th, 2014

Chart: Casualty - Typical Excess of Loss Rate Changes

Posted at 1:00 AM ET

The chart presents rate changes for the January 2014 and the January 2013 renewals.

Continue reading…

January 29th, 2014

Chart: European Property Catastrophe - Typical ROL Changes

Posted at 1:00 AM ET

The chart compares changes at January 2014 with January 2013.

Continue reading…

January 28th, 2014

Chart: Pension Fund Capital Under Management and Allocations into Reinsurance

Posted at 1:00 AM ET

As the illustration below shows, pension funds alone are worth around USD30 trillion. Based on Guy Carpenter’s analysis of possible capital allocation percentages to the (re)insurance space in consultation with sector experts,a maximum of USD900 billion of this amount could potentially be available for insurance-linked investments. This figure is, of course, much greater than currently needed, demonstrating the existing convergence-driven supply excess. Given Guy Carpenter estimates global property catastrophe limit is currently in excess of USD300 billion, and the ILS market only accounts for around 15 percent of this amount, pension funds have so far made very small investments in reinsurance relative to their overall size.

Continue reading…

January 27th, 2014

Chart: U.S. Property Catastrophe Reinsurance Quoting Behavior

Posted at 1:00 AM ET

In the figure below, the January 1, 2014 average quote across all programs is represented by the line at 0 percent, while the red dots indicate reinsurers’ distances from the mean across all the programs that they quoted. The size of the line represents the variability from the average for all quotes provided by the reinsurer. Each reinsurer is represented across the bottom of the chart by its A.M. Best rating. Quotes representing non-concurrent terms were excluded.

Continue reading…

January 24th, 2014

Week’s Top Stories: January 18 - 24, 2014

Posted at 8:00 AM ET

Chart: Gap Between Economic and Insured Losses: Approximately 70 percent of global economic losses from natural catastrophes were uninsured between 1980 and 2013.

Click here to read article>>

 

January 2014 Renewal Report: Capacity: Evolution, Innovation and Opportunity: The January 1, 2014 renewal saw rates on line fall significantly in nearly all regions and business segments as relatively low loss experiences, strong balance sheets and an influx of capital spurred competition and innovation in the reinsurance market. This culminated in a marketplace focused on meeting individual client needs as reinsurers reacted to the challenge posed by alternative markets and alternative markets, in turn, sought to deliver unique solutions. Insurers also looked to capitalize by adapting their buying strategies and prioritizing their risk transfer goals.

Click here to read article>>

 

Chart: Economic and Insured Losses in Advanced and Emerging Economies: The chart shows how small a proportion of losses were insured in both advanced and emerging markets between 2002 and 2011.

Click here to read article>>

 

Chart: Increasing Gap Between GDP Growth and Reinsurance Limit in Asia Pacific: The chart shows that growth in reinsurance catastrophe limit in the Asia Pacific region has clearly not kept pace with economic growth since 2006. Stronger rates of economic growth in such emerging markets mean the gap between economic and insured losses has the potential to increase further.

Click here to read article>>

 

Demand for Asia Pacific Catastrophe Reinsurance at a Record High in 2013: Total Asia Pacific catastrophe limit purchased in 2013 increased for the tenth year in a row, but once again failed to keep pace with strong gross domestic product growth in the region, according to a report by Guy Carpenter.

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And, you may have missed…

Guy Carpenter Insights on A.M. Best’s 2013 Updates: A.M. Best issued several insurance ratings updates in late 2013. Guy Carpenter reviewed those updates and had key insights to help companies better understand their potential impact.

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January 23rd, 2014

Chart: Regional Property Catastrophe ROL Index

Posted at 1:00 AM ET

The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe

Continue reading…

January 22nd, 2014

Chart: Increasing Gap Between GDP Growth and Reinsurance Limit in Asia Pacific

Posted at 1:00 AM ET

The chart shows that growth in reinsurance catastrophe limit in the Asia Pacific region has clearly not kept pace with economic growth since 2006. Stronger rates of economic growth in such emerging markets mean the gap between economic and insured losses has the potential to increase further. 

Continue reading…

January 21st, 2014

Chart: Economic and Insured Losses in Advanced and Emerging Economies

Posted at 1:00 AM ET

The chart shows how small a proportion of losses were insured in both advanced and emerging markets between 2002 and 2011.

Continue reading…

January 20th, 2014

Chart: Gap Between Economic and Insured Losses

Posted at 1:00 AM ET

Approximately 70 percent of global economic losses from natural catastrophes were uninsured between 1980 and 2013.

Continue reading…