Chart: Combined Ratio For Guy Carpenter Reinsurance Composite, YE 2015: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through year end 2015.
Public Sector Risk: Conclusion: We have seen significant growth in public sector entities transferring risk to the reinsurance market utilizing traditional risk transfer structures and alternative risk transfer structures such as collateralized reinsurance and catastrophe bonds.
7.8 Mw Earthquake Near Ecuador Coast: A Mw 7.8 earthquake struck the Esmeralda Province near the west coast of northern Ecuador on April 16, according to the U.S. Geological Survey. The quake occurred at 6:58 PM local time (23:58 UTC) about 17 miles (27 km) south-southeast of Muisne and about 106 miles (170 km) west-northwest of Quito, the capital of Ecuador.
U.S. Southern Plains Flooding: In southeast Texas, a significant flood event has affected the Greater Houston Metro area as well as areas north and west. Heavy and persistent rainfall has produced catastrophic flooding, enabled by a slow-moving upper low and frontal boundary, together with available moisture. Record daily rainfall amounts were observed at Houston International Airport, with amounts of 15 to 18 inches reported north and west of the Houston area. National Weather Service flood and flash flood watches and warnings remain active for areas of the Southern Plains and Lower Mississippi Valley and some additional rainfall is expected with thunderstorms. Media reports indicate at least seven fatalities and first responders expect this number to rise. Reports indicate that over 1,000 homes have been inundated.
Life, Health and Longevity Emerging Risks: In the last 150 years, dramatic improvements have been made in life expectancy. Some developments such as immunizations for smallpox, polio and measles created quantum improvements, while the proliferation of better lifestyles, clean water and more nutritious diets provided gradual and continuing change. While most historical life expectancy developments resulted from improvement in children’s mortality, in the 20th century, mortality rates declined significantly for older ages.
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Regulation: A World View: Financial market regulation has been under review for a number of years but the global financial crisis in 2008 made it a key priority in many countries. While the previous insurance regulatory framework did remarkably well in the protection of insurance consumers and companies during the financial crisis, the insurance industry has not been immune from these factors. Today, new and upcoming regulations are having a profound impact on companies’ balance sheets and risk management practices. Although primarily aimed at larger, global (re)insurers, the changes will impact medium and small (re)insurers as well.