Archive for the ‘Casualty’ Category



September 27th, 2016

Longevity Risk

Posted at 1:00 AM ET

The impacts to society from changes in longevity and life expectancy will be wide-ranging and incredibly difficult issues to grapple with. A 2012 International Monetary Fund (IMF) study revealed that if individuals lived three years longer than expected the cost of aging could increase by 50 percent. This translates to 50 percent of 2010 gross domestic product (GDP) in advanced economies and 25 percent of 2010 GDP in emerging economies. Globally that amounts to tens of trillions of US dollars. The United Nations expects the aggregate expenses of the elderly will double over the period between 2010 and 2050. The figure below shows the projected trend of rising life expectancy to continue in all regions of the globe regardless of economic advancement.

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September 20th, 2016

Cyber Risk: Part II

Posted at 1:00 AM ET

ross_christopher-smChristopher Ross, Managing Director

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As greater understanding of the cyber peril is gained, a chief concern for (re)insurers is risk aggregation. Unlike traditional property insurance where aggregation is monitored by physical locations, insurers are exposed to the possibility of a single attack or a series of attacks either against multiple insureds or a single insured (such as a cloud provider) that could lead to substantial losses across multiple geographies. While a large systemic risk has not yet materialized, it does not mean the risk is not present. The challenging part is that there is limited history and lack of data for this emerging exposure, which makes it difficult for insurers to measure cyber risk and calculate capital needs.

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September 19th, 2016

Cyber Risk: Part I

Posted at 1:00 AM ET

ross_christopher-smChristopher Ross, Managing Director

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As businesses, both large and small, throughout all sectors of industry, become more and more reliant on technology to improve service efficiencies and functionalities, cyber risk has become one of the most pressing public topics addressed in corporate boardrooms and by governments across the globe. The corresponding awareness of a business’s susceptibility to a cyber-attack has grown along with a spate of high-profile attacks. Consequently, cyber risk is now an embedded feature of the global risk landscape, not only as a privacy/network liability, which is where much of the publicity has arisen, but also as a peril affecting traditional insurance lines. Therefore, preventative and post-event remediation are gaining importance as shareholders, regulators and rating agencies are increasingly focused on enterprise risk management activities for cyber risks.

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September 15th, 2016

Solvency II Equivalence In The International (Re)insurance Landscape

Posted at 1:00 AM ET

andrew-cox-951graham-jones-95lobel_myra-smeddy-vanbeneden-sm22sumner-smAndrew Cox, Managing Director; Graham Jones, Senior Vice President; Myra E. Lobel, Managing Director; Eddy Vanbeneden, Managing Director and Steven Sumner, Oliver Wyman, Actuarial Consulting

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The concept of equivalence under Solvency II determines to what extent (re)insurance entities outside Europe can operate within the European Union (EU) while relying solely on their local solvency standards. The ability to operate in the EU is a significant issue that impacts multinational (re)insurance companies and groups.

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September 14th, 2016

The Insurance Of Things & Industry 4.0 – A Matrix View

Posted at 1:00 AM ET

speed_morley_bioMorley Speed, Managing Director

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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.

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September 12th, 2016

(Re)Insurers Modifying Their Behavior Ahead Of A.M. Best’s New Ratings And BCAR Criteria - GC@MC Commentary

Posted at 3:00 AM ET

eric-simpson-smallmurray_mark-smEric Simpson, Managing Director and Mark Murray, Senior Vice President

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Industry Accelerates Risk Profile Analytics and Development of Their Own Risk Tolerances and Stochastic Capital Modeling

The launch of A.M. Best’s (Best) new ratings and Stochastic-based Best’s Capital Adequacy Ratio (BCAR) draft criteria became an inflection point for (re)insurers worldwide. The 2016 changes represent Best’s first major overhaul in over 20 years and are leading to a growing number of changes in market behaviors across the company size spectrum. (Re)insurers are assessing their risk and capital management positions in anticipation of the impacts of Best’s new requirements even though the changes will not result in massive differences in its published ratings nor likely become effective until later in 2017, according to Eric Simpson, Managing Director and Mark Murray, Senior Vice President of Guy Carpenter.

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September 12th, 2016

Managing Volatility Key To Solvency II Transition - GC@MC Commentary

Posted at 12:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

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Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

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September 11th, 2016

Disruptive Forces Redefining The Role Of Insurance - GC@MC Commentary

Posted at 12:00 AM ET

vicky-carter-smVictoria Carter, Vice Chairman, International Operations

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Industry Must Adapt and Innovate to Fully Grasp Opportunities

A series of fundamental disruptive forces are driving monumental changes in the global economy at an unprecedented rate. These forces compel the (re)insurance industry to adjust to the new reality and capitalize on the opportunities created, according to Victoria Carter, Vice Chairman of International Operations at Guy Carpenter.

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September 8th, 2016

Self-Driving Automobiles

Posted at 1:00 AM ET

Technologies that we may take for granted today such as anti-lock braking and airbag systems, driving and parking assistance, hazardous condition traction control and global positioning system routing, may soon all come together and evolve into fully autonomous self-driving automobiles. Self-driving cars are expected to begin commercial production and be in use by 2017. Google, the pioneer in the field, claims it can cut road accidents by eliminating the human driver who gets distracted by text messages or becomes tired. Although safety and efficiency gains have been the most cited and prominent benefits for the rationale for the development of self-driving automobiles, a considerable number of challenges remain.

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September 6th, 2016

Businesses and Their Exposures

Posted at 1:00 AM ET

As referenced in the table Taxonomy of Cyber Risk for Corporations below, the potential losses deriving from cyber-attacks or non-malicious information technology failures fall into 11 categories illustrated in the second table Loss Categories Deriving From Cyber Attacks and Non-Malicious IT Failures.

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