Archive for the ‘Casualty’ Category



September 19th, 2017

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)insurance: Part II

Posted at 1:00 AM ET

krohn_jeff_photo_crop-sm2tedeschi_john_photo_sm21Jeffrey Krohn, Managing Director, and John Tedeschi, Managing Director

To date, the government sponsored entities (GSEs) have placed more than USD 10 billion of limit into the reinsurance market through Fannie Mae’s Credit Insurance Risk Transfer and Freddie Mac’s Agency Credit Insurance Structure, and over USD 50 billion of risk into the capital markets through Fannie Mae’s Connecticut Avenue Securities and Freddie Mac’s Structured Agency Credit Risk. Both capital market and reinsurance programs provide the GSEs with a form of excess of loss coverage on closed pools of mortgages meeting very strict guidelines.

Continue reading…

September 18th, 2017

Public Sector Risk Financing Perspectives in the United States: The Market for Mortgage Credit Risk (Re)insurance: Part I

Posted at 1:00 AM ET

krohn_jeff_photo_crop-sm1tedeschi_john_photo_sm2Jeffrey Krohn, Managing Director, and John Tedeschi, Managing Director

The global financial crisis of 2008 exposed the U.S. mortgage industry, taxpayers, and the global capital markets to the loss potential of residential mortgage credit risk. The total shakeup of the U.S. housing sector resulted in:

Continue reading…

September 8th, 2017

Reinsurance Solutions Continue to Achieve Stability and Growth for Cedents - GC@MC Commentary

Posted at 3:30 AM ET

james-nash-headshot-darker-smchu_julia_photograph-sm

James Nash, President, International and Julia Chu, Managing Director

Contact

  • Shift in buying strategies towards managing volatility
  • Marketplace ‘vibrant’ as buyers capitalize on full array of products
  • Move to de-commoditize solutions driving up product complexity

Continue reading…

September 8th, 2017

Industry Must Develop Common Cyber Risk Currency – GC@MC Commentary

Posted at 1:30 AM ET

morley-speed-final-smc-morley-smMorley Speed, Managing Director and Carolyn Morley, Chairman, Global Casualty

Contact

  • Data integrity and availability as critical as data confidentiality
  • Limited ability to quantify dependency a major cyber inhibitor
  • Challenge to build clearly differentiated cyber portfolio

Continue reading…

September 7th, 2017

Guy Carpenter Announces Senior Appointments in the Pacific Region

Posted at 9:30 PM ET

Guy Carpenter & Company  today announced the appointment of Andre Eisele to the role of CEO of the Pacific Region. In addition, Heinrich Eder will join the Guy Carpenter Advisory Board for the Pacific Region.

Continue reading…

September 5th, 2017

GC Capital Ideas Top Stories: August, 2017

Posted at 1:00 AM ET

1. Hurricane Harvey: Following initial landfall, Hurricane Harvey continued to meander over southeast Texas while weakening to tropical storm status due to land interaction. Harvey then briefly emerged over the Gulf of Mexico before turning to the northeast and making a third landfall near Cameron, Louisiana, early Wednesday morning as a tropical storm. Harvey has since continued to move to the north-northeast and weakened further due to land interaction and dry air. The National Hurricane Center (NHC) downgraded Harvey from tropical storm to tropical depression status at 8 p.m. EDT on August 30, and discontinued tropical storm warnings at that time.

Read the article>>


2. 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>>


3. Cat Modelling Challenges in Europe: 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.

Read the article>>


4. Factors Contributing to the Gap Between Economic and Insured Losses: The factors that contribute to the gap between economic and insured losses.

Read the article>>


5. 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>>


6. 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>>


7. 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, today 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>>


8. Guy Carpenter Announces Senior Promotions in Asia Pacific: Guy Carpenter & Company today announced that Tony Gallagher has been appointed CEO of the Asia Pacific Region, with immediate effect. In addition, Richard Jones has been promoted to Chairman of the Region.

Read the article>>


9. China Risk Oriented Solvency System (C-ROSS): The China Insurance Regulatory Commission (CIRC) is instituting sweeping changes through its three-tiered China Risk Oriented Solvency System (C-ROSS) framework that will dramatically impact how (re)insurers conduct business. It will strengthen capital requirements, risk management and transparency disclosures - bringing China in line with, and in some cases overtaking, global standards. The C-ROSS framework is similar to Solvency II: three tiers focusing on quantitative, qualitative and disclosure requirements.

Read the article>>


10. 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>>


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 30th, 2017

The Transfer of Pandemic Risk from the Public Sector

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on pandemic risk and the role of the capital markets to transfer risk from the public sector.

Continue reading…

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…