Chart: Source Of Earnings For Guy Carpenter Reinsurance Composite, YE 2015: Chart presents source of earnings for the Guy Carpenter Global Reinsurance Composite for the year end, 2015 compared to the year end, 2014.
US Residual Markets: The US residual property insurance market segment is comprised of Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans and two state run insurance companies - Florida Citizens Property Insurance Company (Florida Citizens) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). These insurance facilities grew out of the civil strife in the 1960s to ensure continued access to insurance in urban areas. Over time they have evolved and their mandate has grown beyond their urban focus. Today these facilities are significant providers of some of the most wind- and earthquake-exposed property insurance in the country.
Chart: Return On Equity For Guy Carpenter Reinsurance Composite, YE 2015: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through year end 2015.
Chart: Global Property Catastrophe ROL Index 1990 to 2016: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2016.
China Risk Oriented Solvency System (C-ROSS): The China Insurance Regulatory Commission (CIRC) is instituting sweeping changes through its three-tiered China Risk Oriented Solvency System (C-ROSS) framework that will dramatically impact how (re)insurers conduct business. It will strengthen capital requirements, risk management and transparency disclosures - bringing China in line with, and in some cases overtaking, global standards. The C-ROSS framework is similar to Solvency II: three tiers focusing on quantitative, qualitative and disclosure requirements.
And, You May Have Missed…
Catastrophe Bond: Fourth Quarter Primary Issuance: After 2015 began with record historical issuance levels in the first quarter, the fourth quarter of 2015 was dramatically different as only USD 1.425 billion of 144A property and casualty (P&C) catastrophe bonds benefiting five sponsors were completed. This represented the second lowest level since 2005 and the lowest level since 2009. One explanation for this development may be that sponsors who would ordinarily have been willing to issue in the fourth quarter of the calendar year may have had the flexibility to delay their issuance to the following first quarter in order to obtain best execution and/or avoid transaction crowding. We view sponsors’ willingness to focus on best execution rather than specific renewal dates (while still important for overall capital planning purposes) as a further sign of the maturity of the insurance-linked securities (ILS) space.