Archive for March, 2019



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)  In June 2018, German police intercepted a potential biological attack when an arrest led to the discovery of 84 milligrams of the poison ricin. (2)

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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)

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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…

March 18th, 2019

Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert

Posted at 1:00 AM ET

Rob Bailey, Director of Climate Resilience at Marsh & McLennan Insights

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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.

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March 15th, 2019

Week’s Top Stories: March 9 - 15, 2019

Posted at 10:00 AM ET

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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Prioritizing Business Risks in Japan: In 2019, technological and geopolitical threats continue to be at the center of the risk landscape for businesses in Japan. Other vulnerabilities have also resurfaced, notably the persistent threats of natural catastrophes, the country’s tight labor market and the specter of an asset bubble.

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Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

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MMC Cyber Risk Handbook 2019: Cyber risk is a critical concern for business leaders. According to the World Economic Forum’s 2018 Executive Opinion Survey of more than 12,500 executives, large cyber-attacks are ranked as the #1 risk for doing business virtually across all advanced economies. As companies develop their approach to this dynamic and challenging threat in 2019, there are some emerging trends that they should consider.

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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….

GC Securities* Acts as Sole Structurer and Placement Agent for First Cat Bond to Transfer Standalone Terrorism Risk to the ILS Market: GC Securities announced the placement of GBP 75,000,000 Series 2019 Principal At-Risk Variable Rate Notes issued through Baltic PCC Limited, a protected cell company domiciled in the United Kingdom, on behalf of Pool Re.

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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 14th, 2019

Chart: Global Composite Return on Average Equity, 2005-9M 2018

Posted at 1:00 AM ET

An analysis of the Guy Carpenter Global Reinsurance Composite through nine months of 2018 (the latest data available) shows Return on Average Equity at 7 percent, near the five-year average return of 8.1 percent.

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March 13th, 2019

GC Capital Ideas Covers Modeling Developments

Posted at 1:00 AM ET

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

Continue reading…

March 12th, 2019

MMC Cyber Risk Handbook 2019

Posted at 1:00 AM ET

cyber-handbook-cover-image-smallCyber risk is a critical concern for business leaders. According to the World Economic Forum’s 2018 Executive Opinion Survey of more than 12,500 executives, large cyber-attacks are ranked as the #1 risk for doing business virtually across all advanced economies. As companies develop their approach to this dynamic and challenging threat in 2019, there are some emerging trends that they should consider.

Continue reading…

March 11th, 2019

Prioritizing Business Risks in Japan

Posted at 1:00 AM ET

In 2019, technological and geopolitical threats continue to be at the center of the risk landscape for businesses in Japan. Other vulnerabilities have also resurfaced, notably the persistent threats of natural catastrophes, the country’s tight labor market and the specter of an asset bubble.

Continue reading…