Archive for November, 2018



November 30th, 2018

Mw 7.0 Earthquake – Near Anchorage, Alaska

Posted at 4:59 PM ET

alaska-eq_small_newA magnitude (Mw) 7.0 earthquake was reported near Anchorage, Alaska around 17:29 UTC on November 30 (8:29 local time), according to the U.S. Geological Survey (USGS). The epicenter was located at a depth of 44.1 km and about 12.9 km (8.0 miles) north of Anchorage, Alaska. A tsunami warning was issued but later lifted by the U.S. National Weather Service. Initial media reports indicate that the event rendered considerable damage to infrastructure including roads, power and water, along with significant transportation disruption. Damage has been reported to buildings including interior damage and some cracked foundations with some building collapses. Initial media reports indicate no fatalities or injuries, although survey efforts are still ongoing.

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November 30th, 2018

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

Posted at 10:00 AM ET

Cyberattacks Top the List of Risks in North America: For business executives in the United States and Canada, cyberattacks are now the number one risk to doing business, according to the recent World Economic Forum (WEF) report Regional Risks for Doing Business 2018.

Read the article >>

Terrorism: The Need for Expanded Capacity: Terrorists are increasingly able to modify, adapt and reinvent their tactics and quickly spread their methodologies to their worldwide support base. Economically, the effect of this change across the globe has been significant. Tourism, trade and investments are examples of areas affected as countries grapple with terrorist actions, both direct and indirect. According to the Institute for Economics and Peace, although the peak of global economic impact from terror events was reached in 2014, it remains at historically high levels.

Read the article >>

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of ”silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>

Terrorism: Reinsurance Role in Mitigating the Expanding Peril: More than ever before, brokers and underwriters must use their expertise and solutions to keep insurers and citizens adequately protected. With the peril mutating rapidly, the entire insurance value chain is being challenged – by new types of threats, new modes of attack and the terrorists’ deployment of any violent and disruptive means to reach their desired end-state. The (re)insurance industry must remain in tune with these developments; it must gain insights from academia and observers on how the peril is changing, keep alert to new products in the market, unlock new sources of capacity and help clients understand their portfolios more readily so they remain relevant to their consumer base.

Read the article >>


A Math Formula May Offer a Solution to Insurers’ Critical Challenges: Guy Carpenter has developed a methodology that applies a mathematical formula to provide insurers and reinsurers with a unified, practical framework for risk pricing and capital allocation.

Read the article >>


And, you may have missed …

Risks from Infrastructure Shortfalls in Asia Pacific: In the Asia Pacific region, it is important to address the risk of critical infrastructure failure or shortfall, as analyzed by the latest annual report by Marsh & McLennan Companies’ Asia-Pacific Risk Center titled “From Threats to Impact - Evolving Risk Concerns in Asia-Pacific.”

Read the article >>


November 29th, 2018

Wildfire Activity - California - Update

Posted at 7:25 PM ET

calwildfires_small1Recent wildfire activity has rendered especially severe impacts to areas of California, including areas of Butte, Los Angeles and Ventura Counties. Rates of extreme fire spread were enabled by especially dry, windy conditions on November 8 and the days following. Aggressive firefighting efforts allowed containment efforts to progress despite adverse conditions over the following week. Periods of heavy rainfall have recently allowed firefighting crews to bring the last of the fires to 100 percent containment over the last week. The Camp, Woolsey and Hill Fires have burned an estimated 20,297 structures since November 8, including at least 13,972 residential structures from the Camp Fire alone, according to Cal Fire statistics. These fires have also claimed at least 91 lives. Recent heavy rainfall has amplified the threat for flash-flooding and debris flows in and around the burn scars. Media reports indicate estimated insured losses for the Camp and Woolsey Fires of around USD 9-13 billion as reported by RMS. It will take some time to determine the full scope and severity of this event as search, recovery and survey efforts continue. Our first thoughts and concerns remain with those lost and directly affected by this event.

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November 29th, 2018

Asia Pacific: Cyber Dependency and the Increased Frequency and Sophistication of Cyberattacks

Posted at 10:00 AM ET

_offset_472526_smallIncreasing dependence on technology by businesses and cities in Asia Pacific leads to two major implications for the region, says a study by the Asia-Pacific Risk Center of Marsh & McLennan Companies, Guy Carpenter’s parent company.

From Threats to Impact - Evolving Risk Concerns in Asia-Pacific says this dependence will lead to a growing demand for Information and Communication Technology (ICT) infrastructure, which is currently not being met. On the other, it also means that cities and businesses in the region are progressively under the threat of a systemic breakdown from a cyberattack.

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November 28th, 2018

Terrorism: Reinsurance Role in Mitigating the Expanding Peril

Posted at 10:30 AM ET

terrorism_121x120More than ever before, reinsurance brokers and underwriters must use their expertise and solutions to keep insurers and citizens adequately protected. With the peril mutating rapidly, the entire insurance value chain is being challenged – by new types of threats, new modes of attack and the terrorists’ deployment of any violent and disruptive means to reach their desired end-state. The (re)insurance industry must remain in tune with these developments; it must gain insights from academia and observers on how the peril is changing, keep alert to new products in the market, unlock new sources of capacity and help clients understand their portfolios more readily so they remain relevant to their consumer base.

Continue reading…

November 27th, 2018

Cyberattacks Top the List of Risks in North America

Posted at 10:00 AM ET

For business executives in the United States and Canada, cyberattacks are now the number one risk to doing business, according to the recent World Economic Forum (WEF) report Regional Risks for Doing Business 2018.

Jeremy S. Platt, Managing Director and Cyber Solutions Specialty Practice Leader at Guy Carpenter, says: “2017 was an important year in cybersecurity because businesses around the globe learned firsthand how far-reaching and devastating a cyberattack can be on a business. Last year, WannaCry and Petya/NotPetya proved the speed and breadth at which cyberattacks were able to cause widespread disruption, damages and loss at magnitudes not previously considered.”

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November 26th, 2018

GC Capital Ideas Tip: New Category on Guy Carpenter’s Preference Center

Posted at 11:00 AM ET

We are pleased that GC Capital Ideas subscribers welcomed the launch of Guy Carpenter’s Preference Center, which allows users to sign up for a wider range of alerts that provide news and insights from Guy Carpenter thought leadership specialists.

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November 26th, 2018

Terrorism: The Need for Expanded Capacity

Posted at 11:00 AM ET

terrorism_121x120Terrorists are increasingly able to modify, adapt and reinvent their tactics and quickly spread their methodologies to their worldwide support base. Economically, the effect of this change across the globe has been significant. Tourism, trade and investments are examples of areas affected as countries grapple with terrorist actions, both direct and indirect. According to the Institute for Economics and Peace, although the peak of global economic impact from terror events was reached in 2014, it remains at historically high levels.

Continue reading…

November 23rd, 2018

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

Posted at 10:00 AM ET

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of “silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>


Regional Risks for Doing Business: The recent World Economic Forum’s 2018 Executive Opinion Survey provides a snapshot of the global risks that executives say are of highest concern for doing business in their respective countries. High unemployment remains the top risk concern for business leaders worldwide for the third year in a row, while concerns over large cyberattacks and national governance failure continue to rise.

Read the article >>


A Math Formula May Offer a Solution to Insurers’ Critical Challenges: Guy Carpenter has developed a methodology that applies a mathematical formula to provide insurers and reinsurers with a unified, practical framework for risk pricing and capital allocation.

Read the article >>


GC Videocast - Emerging Cyber Risks Explained: The “years of data breaches,” 2013 and 2014, evolved to healthcare breaches, followed by ransomware attacks. What cyber perils lie ahead? Guy Carpenter’s Jeremy S. Platt, Managing Director and Cyber Solutions Specialty Practice Leader; and Chris Shafer, Assistant Vice President at Cyber Solutions Specialty Practice, explain in the video.

View the video >>


2018 Asia Pacific Catastrophe Reinsurance Report: Guy Carpenter has released its 2018 Asia Pacific Catastrophe Reinsurance Report. The report reviews property catastrophe cover trends; market conditions, including losses and pricing; and catastrophe events in each of the major Asia Pacific countries during 2018. The Executive Summary of the report highlights key findings, including discussion of the various catastrophe events that have impacted the Asia Pacific region during 2018, such as Typhoon Jebi, the strongest typhoon to hit Japan in 25 years; and the Kerala Floods, the most severe to hit the southwestern Indian state since 1924.

Read the article >>


And, you may have missed …

Silent Cyber Explained: “Silent cyber,” also known as unintended or non-affirmative coverage, refers to the unknown or unquantified exposures stemming from cyber perils that may be triggered within traditional property and liability insurance policies. The systemic nature of the cyber risk means silent cyber may become increasingly more prevalent in virtually every type of insurance policy.

Read the article >>


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