Archive for August, 2017



August 31st, 2017

Addressing Flood Peril

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on Guy Carpenter’s efforts to address the flood peril.

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August 30th, 2017

The Transfer of Pandemic Risk from the Public Sector

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on pandemic risk and the role of the capital markets to transfer risk from the public sector.

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August 29th, 2017

Hurricane Harvey - Update

Posted at 7:45 AM ET

tropical-storm-harvey-track-sm Hurricane Harvey made landfall around 11 p.m. EDT, August 25, on the Texas coastline between Port Aransas and Port O’Connor. The hurricane made landfall as a rare Category 4 hurricane on the Saffir-Simpson Scale, with maximum sustained winds of 130 mph and a minimum central pressure of 938 millibars (mb). Harvey then moved inland and began to drift with weak or absent steering currents over subsequent days. Harvey produced significant wind impacts near the immediate impact area along with a considerable storm surge. The slow motion of the weakening hurricane also produced bands of thunderstorms that produced very heavy rainfall over southeast Texas. These rainfall amounts, well in excess of 20 inches for certain areas, have produced catastrophic flood impacts over southeast Texas including the Houston metro area. Impacts include light to moderate wind and tornado damage with downed trees and powerlines, along with flood impacts of variable severity, and significant impact reports from the Houston metro area. Damage to local infrastructure in affected areas has been reported. The storm has caused at least six fatalities according to media reports.

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August 29th, 2017

Public-Private Partnerships Address Cat Risk Across the Globe

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts concerning the emergence of public-private partnerships addressing catastrophe risk across the globe.

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August 28th, 2017

Factors Contributing to the Gap Between Economic and Insured Losses

Posted at 1:00 AM ET

The factors that contribute to the gap between economic and insured losses.

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August 25th, 2017

Hurricane Harvey

Posted at 1:48 PM ET

hurricane-harvey-smHurricane Harvey poses an active threat to the Texas coast as a major hurricane. According to the 3 p.m. EDT National Hurricane Center (NHC) position advisory, Hurricane Harvey carries maximum sustained winds of 120 mph, a Category-3 hurricane on the Saffir-Simpson Scale. Harvey is located about 75 miles southeast of Corpus Christi, Texas, and is approaching the coast on a northwesterly track at 10 MPH. The central pressure has dropped to 943 millibars (mb), and this likely will bring further increase in winds prior to landfall. Harvey is expected to make landfall on the Texas coast late Friday into early Saturday as a major hurricane. Tropical storm conditions are already well underway for certain areas of the Texas coast according to the NHC. Following landfall, Harvey is expected by the NHC to weaken and meander eastward along the Texas coast next week.

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August 25th, 2017

Week’s Top Stories: August 19 — 25, 2017

Posted at 6:30 AM ET

Cat Modelling Challenges in Europe: 2016 marked the 60th year of the Monte Carlo Rendez-Vous. Since the first event in 1957 the insurance world has changed significantly, with economic and insured losses from natural catastrophes such as floods and hurricanes increasing dramatically.

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The Insurance of Things & Industry 4.0 - A Matrix View: Technological progress and the accumulation of assets have not only stimulated the development of insurance products; they have in turn been nurtured by the availability of these offerings.

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Guy Carpenter Asia-Pacific Climate Impact Centre Publishes New Annual Report: The report, covering the Centre’s activities during 2016, is divided into five sections.

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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.

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Insurtech in China: Revolutionizing the Insurance Industry: China’s capital markets aren’t yet mature enough to support financial innovation; meanwhile, existing state-owned financial institutions are not reforming quickly enough. This gap in supply has provided opportunities for Chinese fintech players - who are being supported by rapidly growing online ecosystems and a tech-savvy population - in diverse fields ranging from investing to payments.

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And, You May Have Missed…

Strategic Growth Analysis - The Guy Carpenter Approach: The changes in today’s property and casualty (P&C) insurance marketplace present insurers with many challenges to capital management and risk transfer techniques. Insurers are compelled to leverage their capital positions to increase and diversify their market shares to an unprecedented degree. Preserving the status quo is not an option for long-term viability. Profitable growth is a key priority for companies seeking additional return. Companies need to enter new lines of business or geographies strategically with proper analysis. Guy Carpenter offers proprietary analytical tools, intellectual capital and expertise to help companies determine and evaluate their growth plans while maintaining an acceptable level of risk and profitability.

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August 24th, 2017

Cat Modelling Challenges in Europe: Part IV

Posted at 1:00 AM ET

weatherhead_mark-sm3Mark Weatherhead, Head of Model Development - International

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Flood poses particular challenges for modelling. In particular, the hydraulic modelling of flood extents requires a high-quality digital terrain model that has been processed specifically for the task by removing features like bridges.

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August 23rd, 2017

Cat Modelling Challenges in Europe: Part III

Posted at 1:00 AM ET

weatherhead_mark-sm2Mark Weatherhead, Head of Model Development - International

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There are two main lines of development. First, (re)insurers need to gain a deeper understanding of how the existing commercial vendor models perform for their book of business, how the models can be best modified or customized to better reflect their own loss history, and how the models compare to each other. Second, (re)insurers need to continue to address gaps in knowledge that are not adequately covered by existing models.

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August 22nd, 2017

Cat Modelling Challenges in Europe: Part II

Posted at 1:00 AM ET

weatherhead_mark-sm1Mark Weatherhead, Head of Model Development - International

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While there is still uncertainty regarding the degree of impact from climate change, the likely consequences are subject to modelling. Increasing global temperatures are projected to impact the mid-latitude and polar regions more than the tropics.

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