Archive for September, 2018



September 21st, 2018

Week’s Top Stories: September 15 - 21, 2018

Posted at 10:00 AM ET

Chart: Significant Insured Losses 2011–2Q2018: Chart exhibits the significant insured losses from 2011 through the second quarter of this year.

View the chart >>

Healthcare Target of Increased Cyberattacks: Over the past decade, the healthcare industry has been haunted by headlines of data breaches. Three of the largest reported incidents impacting healthcare organizations in 2015 alone affected more than 100 million patient records and resulted in hundreds of millions of dollars in settlements. Data and cyber breaches have real financial and reputational impacts.

Read the article >>

Super Typhoon Mangkhut: In the West Pacific Basin, Super Typhoon Mangkhut made landfall in Northern Luzon as a Category-5 on the Saffir-Simpson Scale just after 18 UTC September 14, according to advisories of the Joint Typhoon Warning Center (JTWC).

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Hurricane Florence: Hurricane Florence made landfall near Wrightsville Beach, North Carolina at 7:15 AM EDT (1115 UTC) September 14, according to the National Hurricane Center (NHC). Maximum sustained winds at landfall were 90 mph, a strong category-one hurricane on the Saffir-Simpson Scale. The storm slowed considerably at landfall causing prolonged exposure of affected areas to damaging wind gusts and significant rainfall.

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Managing Catastrophe Model Change: Incorporating new hazard and claims insights can improve the estimates derived from catastrophe models. By re-analyzing historical events using the latest scientific methods or refining claims with more granular geographical and line of business breakdowns, we can update models with the latest expertise and data. But model changes that yield large swings in loss estimates for frequent events must be carefully scrutinized to understand assumptions and processes in order to truly support ownership of risk.

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And, you may have missed..

Guy Carpenter Announces New Global Capability to Help Clients Navigate Evolving InsurTech Market: Guy Carpenter announced the launch of GC Genesis, its expanded InsurTech advisory offering designed to meet clients’ desire to understand and leverage the dynamic universe of InsurTech.

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September 20th, 2018

Healthcare & Cyber Risk - The Need to Distribute Cyber Risk Management

Posted at 1:00 AM ET

holding-healthcare-to-ransom-cover-image-6Cyber risk management in the healthcare industry is still perceived to be driven by the IT department only, rather than overall enterprise risk management. According to healthcare respondents in the study Holding Healthcare to Ransom by Marsh & McClennan Companies Global Cyber Risk, 83 percent indicated that responsibility for cyber risk sits mainly with IT professionals and they are the primary owners and decision-makers for managing cyber risks, as compared to the 70 percent cross-industry average. Continue reading…

September 19th, 2018

Internet of Things: A Critical Risk Management Tool

Posted at 1:00 AM ET

Risk management professionals’ awareness of the internet of things (IoT) is on the rise, although many are unaware of the specifics. According to this year’s Excellence in Risk Management survey from Guy Carpenter sister company, Marsh, and RIMS, 59 percent of respondents said their organization uses or plans to use IoT, although 25 percent were not aware of how it would be used. In 2017, 48% said their organization used or planned to use IoT technologies, despite outside statistics showing actual usage at about 90%. Continue reading…

September 18th, 2018

Super Typhoon Mangkhut

Posted at 4:20 PM ET

mangkhutsmallIn the West Pacific Basin, Super Typhoon Mangkhut made landfall in Northern Luzon as a Category-5 on the Saffir-Simpson Scale just after 18 UTC September 14, according to advisories of the Joint Typhoon Warning Center (JTWC). Significant impacts have been reported by media including severe damage due to wind and flooding as well as mudslides. Impacts to agricultural interests in the area have also been reported. After some weakening, Mangkhut then made final landfall just west of Hong Kong as a Category-1 on the Saffir-Simpson Scale just after 06 UTC September 16 in Taishan, according to JTWC and media reports. Considerable impacts due to wind and flooding were reported in Hong Kong, Macau and Guangdong. Media reports indicate at least 70 fatalities as a result of Mangkhut, and our thoughts and concerns are with those lost and affected by this event.

Continue reading…

September 18th, 2018

Hurricane Florence

Posted at 4:06 PM ET

florence-2-smallHurricane Florence made landfall near Wrightsville Beach, North Carolina at 7:15 AM EDT (1115 UTC) September 14, according to the National Hurricane Center (NHC). Maximum sustained winds at landfall were 90 mph, a strong category-one hurricane on the Saffir-Simpson Scale. The storm slowed considerably at landfall causing prolonged exposure of affected areas to damaging wind gusts and significant rainfall. Significant flooding has been reported for areas of the Carolinas and Mid-Atlantic, with greatest severity in areas of eastern North Carolina. The storm has since weakened to a tropical depression while moving into the Ohio Valley. Florence should move through Pennsylvania and New England over the next day or so with an increase in forward speed, and the flood threat persists in the meantime. Downed trees and power lines along with variable property damage have been reported along with significant to catastrophic flooding; the most severely affected areas are in eastern North Carolina. Media reports indicate at least 25 fatalities, and our thoughts and concerns are with those lost and directly affected by this event.

Continue reading…

September 18th, 2018

Chart: Significant Insured Losses 2011–2Q2018

Posted at 1:00 AM ET

Chart exhibits the significant insured losses from 2011 through the second quarter of this year.

Continue reading…

September 17th, 2018

Healthcare Target of Increased Cyberattacks

Posted at 1:00 AM ET

holding-healthcare-to-ransom-cover-image-6Over the past decade, the healthcare industry has been haunted by headlines of data breaches. Three of the largest reported incidents impacting healthcare organizations in 2015 alone affected more than 100 million patient records and resulted in hundreds of millions of dollars in settlements. Data and cyber breaches have real financial and reputational impacts.

Continue reading…

September 14th, 2018

Week’s Top Stories: September 8 - 14, 2018

Posted at 10:00 AM ET

Guy Carpenter Announces New Global Capability to Help Clients Navigate Evolving InsurTech Market: Guy Carpenter announced the launch of GC Genesis, its expanded InsurTech advisory offering designed to meet clients’ desire to understand and leverage the dynamic universe of InsurTech.

Read the article >>

Mw 6.6 Earthquake – Iburi, Hokkaido: A magnitude (Mw) 6.6 earthquake struck the island of Hokkaido in northern Japan at 18:07 UTC on September 5 (03.07 JST on September 6), according to the U.S. Geological Survey (USGS). The epicenter was located at a depth of 33.4 km in the Iburi Subprefecture, about 20 km east of the coastal city of Tomakomai and 62 km southeast of Sapporo. No tsunami warning was issued. The event triggered significant landsliding causing damage to buildings and vehicles, as well as widespread power outages.

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Super Typhoon Jebi: In the West Pacific Basin, Typhoon Jebi made first landfall on Shikoku (Tokushima Prefecture) at around 03 UTC on 4 September, and then second landfall near Kobe (Hyōgo Prefecture) at around 05 UTC on the same day. The storm brought reports of damaging wind gusts in excess of 160 km/hr (100 mph), flooding due to storm surge and heavy rainfall and mudslides. Widespread damage and power outages have been reported by media across southern Japan.

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Data and Analytics Support Innovations in Flood Risk Management - GC@MC Commentary: Flood risk and its impact on communities are global concerns. Advances in data quality coupled with expanding model development and computational power leads to increasingly accurate risk evaluation for (re)insurer portfolio analyses and underwriter risk analyses – with a concomitant increase in policyholder risk awareness.

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A Strategy for Market Volatility: Portfolio Optimization - GC@MC Commentary: Today, (re)insurers are challenged by a host of factors pressuring companies’ earnings and capital – excess capacity is impacting underwriting profitability as claim frequency and severity are rising – contributing to a movement toward balance sheet volatility that impacts earnings and growth, according to a global roundtable of Guy Carpenter leaders.

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And, you may have missed..

Maintaining Momentum - GC@MC Commentary: In May, SCOR became the first reinsurer to use the new UK ILS regime to issue a cat bond. GC Securities,* as sole structurer and bookrunner, was the first broker-dealer to navigate the requirements of the legislation. Des Potter, Managing Director, GC Securities and a leading figure in the work to establish the regime, discusses the potential for ILS growth, and how London can build on its early success and become an innovation hub.

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*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.

September 13th, 2018

Managing Catastrophe Model Change

Posted at 1:00 AM ET

powers_imelda_71x88Imelda Powers, Senior Cat Management Advisor, Asia Pacific, Global Strategic Advisory

Contact

Incorporating new hazard and claims insights can improve the estimates derived from catastrophe models. By re-analyzing historical events using the latest scientific methods or refining claims with more granular geographical and line of business breakdowns, we can update models with the latest expertise and data. But model changes that yield large swings in loss estimates for frequent events must be carefully scrutinized to understand assumptions and processes in order to truly support ownership of risk. Continue reading…