February 4th, 2019

GC Capital Ideas Top Stories: January 2019

Posted at 1:00 AM ET

1. Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

2. Chart: Top Risks Expected to Increase in 2019: The chart lists the top ten risks expected to deteriorate in 2019 across five areas of concern highlighted in this year’s Global Risks Perception Survey (GRPS). The results of GRPS are analyzed in the 14th edition of the Global Risks Report, prepared by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies. The chart shows the percentage of respondents who are concerned about each risk.

View the chart >>

3. 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 >>

4. Sydney Hailstorms, December 20, 2018: A 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.

Read the article >>

5. Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the Chart >>

6. Guy Carpenter Announces New Division and Senior Appointments Designed to Deliver Enhanced Client Value: Guy Carpenter today announced the formation of a new Global Capital Solutions Group and a series of new leadership appointments related to the Jardine Lloyd Thompson Group plc (JLT) acquisition. These appointments will become effective upon closing of the transaction between Guy Carpenter’s parent company, Marsh & McLennan Companies, and JLT, which remains subject to the receipt of certain antitrust and financial regulatory approvals.

Read the article >>

7. Excess and Surplus (E&S) Segment Outlook: The excess and surplus (E&S) lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat.

Read the article >>

8. Balance Sheet Expansion: Opportunities and Challenges: From 2014 to 2017, the property and casualty (P&C) industry in the United States grew its collective capital position from USD 686 billion to USD 767 billion, a 3.8 percent compound annual growth rate. This expansion in capital was achieved during a period when the normalized return profile of the P&C underwriting business was considered to be below the cost of capital. The growth of industry capital during this period of subpar underwriting returns provides insights into the expectations for carriers’ opportunities and challenges through 2018 and into the years ahead.

Read the article >>

9. Top Financial and Professional Lines Risks in 2019: The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh.

Read the article >>

10. Taiwan: Catastrophe Insurance and Gap in Coverage: Taiwan has experienced a series of extreme weather events in recent years, which are expected to continue into the future, says the 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 >>

AddThis Feed Button
Bookmark and Share


Related Posts