Archive for March, 2019



March 29th, 2019

Week’s Top Stories: March 23-29, 2019

Posted at 10:00 AM ET

A Risk Overview of Wildfire: Today, the frequency and severity of wildfires are garnering greater attention - not only from the media, but also from (re)insurers, catastrophe modelers, mitigation experts and other invested parties.

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Chart: Global Composite Return on Average Equity, 2005-YE 2018: Chart reports Return on Average Equity for the Guy Carpenter Global Composite compared against the five-year weighted average.

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Top Country-Specific Risk Insights for Business: Asia Pacific: Regional heterogeneity across the Asia Pacific region has translated to diversified sets of concerns in different countries/territories. Correspondingly, businesses, particularly those with international and regional operations, need to be able to deal with more risks from multiple sources.

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Aviation Industry May Be Vulnerable to Cyberattack Through Its Global Supply Chain: While major aircraft manufacturers and airlines make obvious targets because of the potential they represent to conspicuously disrupt international commerce, they also rank high on hackers’ to-do lists because they maintain global, highly interconnected supply chains that over the past few years have been aggressively digitizing operations. More digitization means more attack surface for hackers.

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Chart: Evolution of the Sidecar Market: Chart presents the evolution of sidecar capacity compared with the Global Property Catastrophe ROL Index, 2005 - 2018.

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And, you may have missed….

Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert: When PG&E filed for Chapter 11 protection in January, The Wall Street Journal dubbed it the “first climate change bankruptcy.” The California power utility was facing USD 30 billion in potential liabilities following a series of devastating wildfires linked to its equipment-wildfires made more likely by a prolonged period of hot, dry weather that had reduced the surrounding forests to tinder and which scientists have since attributed to climate change.

Read the article >>


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March 28th, 2019

Aviation Industry May Be Vulnerable to Cyberattack Through Its Global Supply Chain

Posted at 1:00 AM ET

cyber-handbook-cover-image-smallWhile major aircraft manufacturers and airlines make obvious targets because of the potential they represent to conspicuously disrupt international commerce, they also rank high on hackers’ to-do lists because they maintain global, highly interconnected supply chains that over the past few years have been aggressively digitizing operations. More digitization means more attack surface for hackers.

Continue reading…

March 27th, 2019

Chart: Global Composite Return on Average Equity, 2005-YE 2018

Posted at 1:00 AM ET

Chart reports Return on Average Equity for the Guy Carpenter Global Composite compared against the five-year weighted average.

Continue reading…

March 26th, 2019

Top Country-Specific Risk Insights for Business: Asia Pacific

Posted at 1:00 AM ET

Skyline of Dubai at nightRegional heterogeneity across the Asia Pacific region has translated to diversified sets of concerns in different countries/territories. Correspondingly, businesses, particularly those with international and regional operations, need to be able to deal with more risks from multiple sources.

Continue reading…

March 25th, 2019

A Risk Overview of Wildfire

Posted at 1:00 AM ET

Today, the frequency and severity of wildfires are garnering greater attention-not only from the media, but also from (re)insurers, catastrophe modelers, mitigation experts and other invested parties.

Continue reading…

March 22nd, 2019

Week’s Top Stories: March 16 - 22, 2019

Posted at 10:00 AM ET

Global Cyber Terrorism Incidents on the Rise: The nature of the terrorism threat facing society has changed considerably in the last 20 years. Previously, governments and (re)insurers structured their mitigation strategies and responses to deal with attacks that were large in scale.

Read the article >>


Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert: When PG&E filed for Chapter 11 protection in January, The Wall Street Journal dubbed it the “first climate change bankruptcy.” The California power utility was facing USD 30 billion in potential liabilities following a series of devastating wildfires linked to its equipment. Wildfires were made more likely by a prolonged period of hot, dry weather that had reduced the surrounding forests to tinder and which scientists have since attributed to climate change.

Read the article >>


The Transformation of Biological Risks: Deliberate Attacks: Received wisdom is that biological agents are an unattractive weapon, in part because of the perceived risks involved in their production, and also because of the difficulty of targeting particular groups or populations. But this is not an area for complacency. A report commissioned last year by the U.S. Department of Defense highlights the “almost limitless list of malicious activities that could potentially be pursued with biology” and draws parallels with the importance of advances in physics and chemistry during the Cold War.

Read the article >>


GC Capital Ideas Covers Modeling Developments: GC Capital Ideas presents a review of our recent stories covering modeling for various perils.

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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.

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And, you may have missed….

First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific: The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance-linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover and represents the first such transaction by the company.

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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, 12 Endeavour Square, London, E20 1JN. 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 21st, 2019

The Transformation of Biological Risks: Deliberate Attacks; Part II

Posted at 1:00 AM ET

extreme-weather-2In contrast to other types of terrorist attack, which require resources that are difficult to scale and replenish, the technical knowledge required to launch a catastrophic biological attack can be deployed repeatedly once it is mastered. This potential to “reload” creates the potential for successive high-impact attacks. According to one expert, this means that the national security vulnerabilities revealed by the terrorist attacks of September 11, 2001 in the United States were smaller than those revealed by the series of “anthrax letters” that killed five people in the weeks that followed. (1) ┬áIn June 2018, German police intercepted a potential biological attack when an arrest led to the discovery of 84 milligrams of the poison ricin. (2)

Continue reading…

March 20th, 2019

The Transformation of Biological Risks: Deliberate Attacks; Part I

Posted at 1:00 AM ET

extreme-weather-2Received wisdom is that biological agents are an unattractive weapon, in part because of the perceived risks involved in their production, and also because of the difficulty of targeting particular groups or populations. But this is not an area for complacency. A report commissioned last year by the U.S. Department of Defense highlights the “almost limitless list of malicious activities that could potentially be pursued with biology” and draws parallels with the importance of advances in physics and chemistry during the Cold War. (1)

Continue reading…

March 19th, 2019

Global Cyber Terrorism Incidents on the Rise

Posted at 1:00 AM ET

cyber-handbook-cover-image-smallThe nature of the terrorism threat facing society has changed considerably in the last 20 years. Previously, governments and (re)insurers structured their mitigation strategies and responses to deal with attacks that were large in scale. Continue reading…