Archive for March, 2018



March 30th, 2018

Week’s Top Stories: March 24 - 30, 2018

Posted at 9:00 AM ET

Reinsurance Market Assessment: What the Numbers Reveal about the Current Industry Status: After several years of light catastrophe activity, particularly in the United States where capital deployment covering catastrophe exposures was heavily impacted by convergence capital, the events of 2017 provided a framework to evaluate how evolving market dynamics over the last few years held up to the real test of losses.

A review of data and behavior from 2017 revealed supply/demand dynamics remained favorable to buyers of reinsurance. Markets maintained reasonable levels of capital and profitability overall, even though some individual lines of business have underperformed in recent years. The actions of this evolving market can now be evaluated with at least some level of real-world experience and an assessment of market response has a direct bearing on what companies can plan for and expect going forward.

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Cybersecurity Risks on Radar: Cybersecurity risks are increasingly being managed as a result of growing use of technology. Organizations’ Treasury and Finance functions are tasked with managing risks resulting from recent technology adoptions. Three-fourths of corporate practitioners report that cybersecurity risks have surfaced at their companies as a result of the increased use of new technologies. Slightly less than half cite operational risk as a concern (47 percent), followed by business continuation (41 percent).

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Chart: The Matrix of Cyber and Property Lines Insurance Coverage: Chart examines the policy coverage matrix between cyber and property lines of insurance coverage.

View the chart >>


Guy Carpenter Reports Capital Growth and Market Resilience Despite 2017 Losses: Guy Carpenter has released an estimate of year-end reinsurance capital levels and results of the January 2018 reinsurance renewal.

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Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2018.

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And, you may have missed….

Cyber Risk in an Interconnected World: In a digital world, cyber exposure evolves every day, making it one of the most dynamic emerging risks in the industry. Just as the housing boom along the US shoreline accelerated property losses, the technological sophistication and digital connectivity of the global economy have increased the cyber threat for all sectors. As large-scale breaches become more damaging and pervasive, the (re)insurance industry needs to continue to innovate to address potential systemic events, aggregations, and modeling capabilities. As such, 2018 will be a year of product growth and new challenges. In order to advance this important market, we must develop a common analytical language, harness advanced modeling technologies and learn lessons from other lines of business.

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March 29th, 2018

What the Numbers Reveal about the Current Industry Status. Chapter 2: Insurer Profitability and Retrocession, Part II

Posted at 1:00 AM ET

How have 2017 losses and the last several years of declining rates impacted reinsurer profitability?  Has increasing prevalence of retrocessional reinsurance, now provided primarily by convergence capital providers, had an impact? Part II.

Continue reading…

March 28th, 2018

What the Numbers Reveal about the Current Industry Status. Chapter 2: Insurer Profitability and Retrocession, Part I

Posted at 1:00 AM ET

Chapter 2: How have 2017 losses and the last several years of declining rates impacted reinsurer profitability?  Has increasing prevalence of retrocessional reinsurance, now provided primarily by convergence capital providers, had an impact? Part I.

The Guy Carpenter Global Reinsurance Composite Third Quarter results provided hard data and context for recent industry performance.

Continue reading…

March 27th, 2018

Reinsurance Market Assessment: What the Numbers Reveal about the Current Industry Status. Chapter 1

Posted at 1:00 AM ET

After several years of light catastrophe activity, particularly in the United States where capital deployment covering catastrophe exposures was heavily impacted by convergence capital, the events of 2017 provided a framework to evaluate how evolving market dynamics over the last few years held up to the real test of losses.

Continue reading…

March 26th, 2018

Cybersecurity Risks on Radar

Posted at 1:00 AM ET

Cybersecurity risks are increasingly being managed as a result of growing use of technology. Organizations’ Treasury and Finance functions are tasked with managing risks resulting from recent technology adoptions. Three-fourths of corporate practitioners report that cybersecurity risks have surfaced at their companies as a result of the increased use of new technologies. Slightly less than half cite operational risk as a concern (47 percent), followed by business continuation (41 percent).

Continue reading…

March 23rd, 2018

Week’s Top Stories: March 17 - 23, 2018

Posted at 10:00 AM ET

Exposure to New Risks: Some emerging technologies are exposing organizations to new risks, but few practitioners report a significant impact. Over half of survey respondents report that artificial intelligence is impacting risk exposure at their organizations, although only 14 percent indicate the effect is significant. Data engineering and spreadsheets are also viewed as technologies that will expose companies to new risks.

Read the article >>


Cyber Risk in an Interconnected World: In a digital world, cyber exposure evolves every day, making it one of the most dynamic emerging risks in the industry. Just as the housing boom along the U.S. shoreline accelerated property losses, the technological sophistication and digital connectivity of the global economy have increased the cyber threat for all sectors. As large-scale breaches become more damaging and pervasive, the (re)insurance industry needs to continue to innovate to address potential systemic events, aggregations and modeling capabilities.

Read the article >>


Automobile Liability Market Update & Loss Trends Analysis: For most U.S. property and casualty insurance companies, automobile liability line performance has typically been one of the major factors adversely impacting overall profitability in recent years. Since the economic crisis of 2008, combined ratios for the auto liability line have steadily deteriorated, putting pressure on carriers to advance strategies to reverse this trend.

Read the article >>


Chart: Catastrophe Bond Issuance and Capital Outstanding: Chart shows 144A P&C catastrophe issuance and capital outstanding for the years 1998 through year-end 2017 based on data from GC Securities’* proprietary database.

View the chart >>


Cyber Risk; Threats and Insurance Protection for the Mining Sector: The world’s leading mining companies now unanimously report that cyber threats are among the principal risks facing their organizations. The report from Guy Carpenter sister company Marsh, Cyber Risk: Threats and Insurance Protection for the Mining Sector, highlights how networked systems are now in use across all aspects of mining operations, and how a range of cyber-attacks on the sector - and industry at large - have raised concerns about the cyber threat.

Read the article >>


And, you may have missed….

Guy Carpenter Reports Capital Growth and Market Resilience Despite 2017 Losses: Guy Carpenter has released an estimate of year-end reinsurance capital levels and results of the January 2018 reinsurance renewal.

Read the article >>


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

*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities LLC, MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.

March 22nd, 2018

Cyber Risk: Threats and Insurance Protection for the Mining Sector

Posted at 1:00 AM ET

The world’s leading mining companies now unanimously report that cyber threats are among the principal risks facing their organizations. The report from Guy Carpenter sister company Marsh, Cyber Risk: Threats and Insurance Protection for the Mining Sector, highlights how networked systems are now in use across all aspects of mining operations, and how a range of cyber-attacks on the sector - and industry at large - have raised concerns about the cyber threat.

Continue reading…

March 21st, 2018

Chart: The Matrix of Cyber and Property Lines Insurance Coverage

Posted at 1:00 AM ET

Chart examines the policy coverage matrix between cyber and property lines of insurance coverage. Continue reading…

March 20th, 2018

Automobile Liability Market Update & Loss Trends Analysis

Posted at 1:00 AM ET

For most U.S. property and casualty insurance companies, automobile liability line performance has typically been one of the major factors adversely impacting overall profitability in recent years. Since the economic crisis of 2008, combined ratios for the auto liability line have steadily deteriorated, putting pressure on carriers to advance strategies to reverse this trend. These strategies need to be developed in order to address the major components that negatively impact auto liability loss ratios - inadequate rates for the risk assumed and marked increases in both frequency and severity of loss.

Continue reading…