Archive for December, 2018



December 31st, 2018

Catastrophe Insurance Gap in China

Posted at 1:00 AM ET

14shades_thumbnailEven though China is the fastest growing insurance market in the world, the country’s catastrophe insurance protection gap remains significant, according to the recent report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns by Marsh & McLennan Companies’ Asia-Pacific Risk Center. Continue reading…

December 28th, 2018

Sydney Hailstorms, December 20, 2018

Posted at 8:49 PM ET

australia-hail-small1A severe convective storm affected large parts of New South Wales, including Sydney, the Central Coast and Wollongong from 4:00 to 7:00 pm on December 20, 2018. The storm generated large hail, damaging winds and flash flooding in many areas of the state. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of 8 cm diameter in Berowra Heights in Sydney’s north and similar size hail in Casula and Liverpool in the city’s southwest.  The Nattai National Park west of Picton also experienced large hail. Initial damage reports indicated that the suburbs of Berowra Heights, Hornsby, Liverpool, Gosford and Lithgow were the most severely affected. Given that the event occurred during the Christmas holidays, many residents and businesses have not fully assessed the extent of damages; therefore, loss estimates are expected to increase in the next few weeks.

Continue reading…

December 28th, 2018

Week’s Top Stories: December 22 - 28, 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 >>

Report: New Zealand’s Agriculture Lacking Risk Mitigation Measures: New Zealand’s vulnerability to climate-related risks such as extreme weather events is rising due to rapid urbanization and an increase in the frequency and severity of these events, according to the recent report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

GC Capital Ideas: CAT-i Stories: Fourth Quarter 2018: Here is a look back at the CAT-i articles from October 1 through December.

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The Dangers Lurking in the Union between Construction and Emerging Tech: Technology startups geared toward the construction industry are booming. Contractors are adopting wearable tech to prevent and mitigate worker injuries and using 3D printing technologies for building components. The industry has seen a proliferation of building information modeling to foster digital collaboration between architects, engineers and contractors.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>

And, you may have missed …

Global Insurance Prices Rise for Fourth Consecutive Quarter: Trends in property and financial and professional lines of coverage drove average commercial insurance prices higher for the fourth consecutive quarter, according to the most recent Marsh Global Insurance Market Index. Global commercial insurance prices tracked in the index rose, on average, more than one percentage point in the third quarter of 2018.

Read the article >>

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December 27th, 2018

Marsh & McLennan Companies Climate Resilience Microsite

Posted at 1:00 AM ET

Extreme weather events, shifting regulations, evolving competition and increased actions by investors are just some of the challenges facing organizations - all driven by a growing focus on climate change.

Continue reading…

December 26th, 2018

GC Capital Ideas: CAT-i Stories: Fourth Quarter 2018

Posted at 1:00 AM ET

Here is a look back at the CAT-i articles from October 1 through December.

Mw 7.0 Earthquake – Near Anchorage, Alaska: The magnitude (Mw) 7.0 earthquake near Anchorage, Alaska, on November 30 occurred at a depth of 44.1 km as the result of a slip on an intraslab fault within the subducting Pacific slab. According to the United States Geological Survey, the faulting involved a moderately dipping fault striking north-south, below the shallower thrust-faulting interface between the Pacific Plate and the North America Plate. A tsunami warning was issued but later lifted by the U.S. National Weather Service. Damage was reported to buildings, including interior damage and some cracked foundations with some building collapses.

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California Wildfire Activity: November Wildfire activity in California rendered especially severe impacts in Northern and Southern 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. Camp, Woolsey and Hill Fires 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 (as reported in the CAT-i on November 29). These fires have also claimed at least 91 lives. Media reports indicate estimated insured losses for the Camp and Woolsey Fires of around USD 9-13 billion as reported by RMS.

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Hurricane Michael: Hurricane Michael, the strongest hurricane to affect the Continental U.S. since Hurricane Andrew in 1992, made landfall on October 10 as a high-end Category-4 hurricane on the Florida Panhandle, with maximum sustained winds of 155 mph. The storm rendered severe to complete damage to areas from Panama City to Port Saint Joe, with especially severe damage in Mexico Beach due to severe wind and storm surge. Wind caused roof and wall collapse, especially for cinderblock construction and even commercial properties. Some coastal areas of Mexico Beach were scoured to the foundation by storm surge and wave battering. At least 12 fatalities were reported by media by the time the CAT-i was released.

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Super Typhoon Trami: In the West-Pacific Basin, Typhoon Trami made landfall in the city of Tanabe, Japan (Wakayama prefecture) on 30 September, according to media reports. Before reaching Honshu, the typhoon had rendered considerable impacts while making close approach to Okinawa, Kyūshū and Shikoku Islands. Trami brought significant flood impacts as a result of heavy rainfall and storm surge, as well as variable property damage due to wind. Significant power outages and transportation disruption were reported by media. Over 4.3 million people were given evacuation orders or advisories. Media reports indicated at least four fatalities and 120 injured.

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December 25th, 2018

GC Capital Ideas Tip: Tagging

Posted at 1:00 AM ET

Every article on GC Capital Ideas is “tagged.” Tags are keywords used to label a particular article. Since few stories deal with only one topic, tags give you several ways to find the information you need. To see an article on a specific subject, just click a tag at the end of an article. Examples include reinsurance rates, cyber and catastrophe bonds. Within each article, key terms are set up as links to tags, as well. Clicking one of these links (see the examples in the previous sentence) is the same as clicking a tag. It shows you all stories related to that keyword.

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December 24th, 2018

The Dangers Lurking in the Union between Construction and Emerging Tech

Posted at 1:00 AM ET

adrian_pellan_hsAdrian Pellen, Infrastructure Segment Leader, U.S. and Canada Construction Practice at Marsh

Contact

Technology startups geared toward the construction industry are booming. Contractors are adopting wearable tech to prevent and mitigate worker injuries and using 3D printing technologies for building components. The industry has seen a proliferation of building information modeling to foster digital collaboration between architects, engineers and contractors.

Continue reading…

December 21st, 2018

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

Posted at 10:00 AM ET

Global Insurance Prices Rise for Fourth Consecutive Quarter: Trends in property and financial and professional lines of coverage drove average commercial insurance prices higher for the fourth consecutive quarter, according to the most recent Marsh Global Insurance Market Index. Global commercial insurance prices tracked in the index rose, on average, more than one percentage point in the third quarter of 2018.

Read the article >>

Europe Experienced Increased Cyberattacks in the First Half of 2018: Estimates suggest that the number of cyberattacks across Europe increased by around a third in the first quarter of 2018, compared to the same period last year, according to the recent World Economic Forum (WEF) report Regional Risks for Doing Business 2018.

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Ensuring innovation is more than a cliché: The numerous challenges the insurance industry faces mean that innovation is critical to tackling them. Rob Bentley, Chief Executive Officer of Guy Carpenter’s Global Strategic Advisory, describes how Guy Carpenter is helping its clients manage these challenges-especially the conundrum of InsurTech, in an interview that appeared in Intelligent Insurer magazine.

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 >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>

And, you may have missed …

Report: New Zealand’s Agriculture Lacking Risk Mitigation Measures: New Zealand’s vulnerability to climate-related risks such as extreme weather events is rising due to rapid urbanization and an increase in the frequency and severity of these events, according to the recent report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

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

December 20th, 2018

Affirmative versus Silent Cyber: An Overview

Posted at 1:00 AM ET

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.

Continue reading…