Author Archive



August 21st, 2017

Cat Modelling Challenges in Europe: Part I

Posted at 1:00 AM ET

weatherhead_mark-sm

Mark Weatherhead, Head of Model Development - International

Contact

2016 marked the 60th year of the Monte Carlo Rendez-Vous. Since the first event in 1957 the insurance world has changed significantly, with economic and insured losses from natural catastrophes such as floods and hurricanes increasing dramatically.

Continue reading…

August 18th, 2017

Week’s Top Stories: August 12 — 18, 2017

Posted at 6:30 AM ET

The Insurance of Things & Industry 4.0 - A Matrix View: Technological progress and the accumulation of assets have not only stimulated the development of insurance products; they have in turn been nurtured by the availability of these offerings.

Read the article>>


Insurtech in China: Revolutionizing the Insurance Industry: China’s capital markets aren’t yet mature enough to support financial innovation; meanwhile, existing state-owned financial institutions are not reforming quickly enough. This gap in supply has provided opportunities for Chinese fintech players - who are being supported by rapidly growing online ecosystems and a tech-savvy population - in diverse fields ranging from investing to payments.

Read the article>>


Managing Catastrophe Model Uncertainty, Issues and Challenges: Here we repeat our series authored by John Major, which focuses on the issues and challenges in managing catastrophe model uncertainty.

Read the article>>


Increasing External Demands Compel Companies to Improve Risk Management Disclosures: Guy Carpenter released its latest Enterprise Risk Management (ERM) Benchmark Review, providing an in-depth analysis of risk management practices and policies of 67 insurance and reinsurance companies located in Europe, United States, Bermuda, and Asia-Pacific. Based on publicly-available data from financial and risk reports, Guy Carpenter’s ERM Benchmark Review reveals that most (re)insurers are managing capital with metric-based frameworks and are publishing more about their risk management targets than seen in Guy Carpenter’s 2009 analysis.

Read the article>>


Chart: Top Ten Catastrophe Bond Transactions For 2016: The table lists the top ten catastrophe bond transactions that were completed in 2016.

Read the article>>


And, You May Have Missed…

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Globally, three of the ten most costly natural disaster events in the last 35 years occurred in total or in part in the Latin America/Caribbean (LAC) region; losses from Hurricane Matthew in the Caribbean are still being assessed.

Read the article>>


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


*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, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. 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. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

August 17th, 2017

The Insurance Of Things & Industry 4.0 – A Matrix View: Part III: Business Interruption Following Non-Physical Damage

Posted at 1:00 AM ET

morley-speed-small22Morley Speed, Managing Director

Contact

Column D (below) outlines the areas in which cyber insurance would be expected to operate. However, to date, the cover has focused on data breaches rather than business interruption (BI) arising from disruption of industrial control systems.

Continue reading…

August 16th, 2017

The Insurance Of Things & Industry 4.0 – A Matrix View: Part II

Posted at 1:00 AM ET

morley-speed-small21Morley Speed, Managing Director

Contact

Broadly speaking, the material world is covered by the property line and the virtual world by the cyber line. However, the demarcation is not absolutely clear, resulting in some overlaps in cover but also, more worryingly, some gaps in cover.

Continue reading…

August 15th, 2017

The Insurance Of Things & Industry 4.0 – A Matrix View: Part I

Posted at 1:00 AM ET

morley-speed-small2Morley Speed, Managing Director

Contact

Technological progress and the accumulation of assets have not only stimulated the development of insurance products; they have in turn been nurtured by the availability of these offerings.

Continue reading…

August 14th, 2017

Insurtech in China: Revolutionizing the Insurance Industry: Part III: Risks and Uncertainties Facing the Insurtech Industry

Posted at 1:00 AM ET

cliff-sheng-portrait-sm3Cliff Sheng, Partner and Head of Financial Services, Greater China, Oliver Wyman

Contact

Notwithstanding the tremendous scope and opportunity for certain simple products — such as travel insurance and shipping return insurance — in the Chinese insurtech market, several products such as auto insurance and universal life insurance face uncertainties owing to the following four factors:

Continue reading…

August 11th, 2017

Week’s Top Stories: August 5 — 11, 2017

Posted at 6:30 AM ET

Insurtech in China: Revolutionizing the Insurance Industry: China’s capital markets aren’t yet mature enough to support financial innovation; meanwhile, existing state-owned financial institutions are not reforming quickly enough. This gap in supply has provided opportunities for Chinese fintech players - who are being supported by rapidly growing online ecosystems and a tech-savvy population - in diverse fields ranging from investing to payments.

Read the article>>


Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: On a global basis, approximately 70 percent of the economic loss caused by natural catastrophe events is not covered by insurance. This gap, the cost of uninsured events, frequently falls on governments through disaster relief, welfare payments and infrastructure repair and rebuilding. The ultimate cost of these responses causes a strain on public balance sheets and an increase in public debt, ultimately burdening taxpayers. The protection gap is increasing in emerging economies especially where the amount of natural catastrophe economic loss covered by insurance dropped from 25 percent in 2002 to approximately eight percent in 2014.

Read the article>>


GC Securities Completes First Listed P&C Cat Bond Issued by World Bank International Bank for Reconstruction & Development’s Capital-at-Risk Program: GC Securities, a division of MMC Securities LLC, a U.S. registered broker-dealer and member FINRA/NFA/SIPC, announced the placement of a catastrophe bond benefitting the government of Mexico’s Fund for Natural Disasters (FONDEN). The $360,000,000, three-class catastrophe bond is issued by the International Bank for Reconstruction and Development (”World Bank” or “IBRD”), and represents the first listed property and catastrophe bond issued under its Capital-at-Risk notes program.

Read the article>>


Managing Catastrophe Model Uncertainty, Issues and Challenges: Here we repeat our series authored by John Major, which focuses on the issues and challenges in managing catastrophe model uncertainty.

Read the article>>


Guy Carpenter Reports Moderating Reinsurance Pricing Decline at January 1, 2017 Renewals: Guy Carpenter & Company reports the decline in reinsurance pricing moderated at the January 1, 2017 renewal across most classes of business and geographies, as compared to the past three renewal seasons.  Several sectors experienced increased loss activity, which had only a localized impact on pricing while capacity remained plentiful. After remaining fairly stable in 2015, dedicated reinsurance capital increased by 5 percent from January 1, 2016 to January 1, 2017 as calculated by Guy Carpenter and A.M. Best. The convergence capital segment increased by 10 percent.

Read the article>>


And, You May Have Missed…

Analytics: Fueling Risk-Informed Decisions: Today’s rapidly changing global environment presents insurers with many challenges and opportunities as capital management and risk transfer techniques evolve at an unprecedented pace. Stakeholders, regulators and ratings agencies are deepening their focus on risk management practices, and revolutionary developments in technology, including the Internet of Things and hyper-connectivity, are driving companies to adapt to the challenges that senior management faces to support risk management decisions material to their business.

Read the article>>


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


*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, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. 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.

August 10th, 2017

Insurtech in China: Revolutionizing the Insurance Industry: Part II: Insurtech Makes Gains

Posted at 1:00 AM ET

cliff-sheng-portrait-sm1Cliff Sheng, Partner and Head of Financial Services, Greater China, Oliver Wyman

Contact

Insurtech is revolutionizing the insurance industry by bringing disruptive products and services to a market that is fast adopting, and increasingly moving toward, an online ecosystem. The market is also seeing a surge in the number of people who are aware of and are starting to understand the benefits of insurance.

Continue reading…

August 9th, 2017

Insurtech in China: Revolutionizing the Insurance Industry: Part I

Posted at 1:00 AM ET

cliff-sheng-portrait-sm

Cliff Sheng, Partner and Head of Financial Services, Greater China, Oliver Wyman

Contact

China’s capital markets aren’t yet mature enough to support financial innovation; meanwhile, existing state-owned financial institutions are not reforming quickly enough. This gap in supply has provided opportunities for Chinese fintech players — who are being supported by rapidly growing online ecosystems and a tech-savvy population — in diverse fields ranging from investing to payments.

Continue reading…

August 8th, 2017

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part IV: Closing the Protection Gap

Posted at 1:00 AM ET

whitmore_charles_photo-sm4Charles Whitmore, Managing Director

Contact

These trends are likely to support broader product offerings and greater market stability around which the private sector may close the protection gap in EMEA and in other regions:

Continue reading…