Archive for the ‘Casualty’ Category



September 17th, 2014

As Cyber-Attacks Escalate, So Does Demand for Cyber-Specific Insurance

Posted at 1:00 AM ET

morley-speed-small2-97kirsten-eickstaedt-sma852mike-brown-sm972jeremy-platt-ls971Morley Speed, Managing Director, UK Cyber Solutions; Kirsten Eickstaedt, Senior Vice President, European Division and Casualty Solutions Group ; Mike Brown and Jeremy Platt, Co-Leaders of Cyber Solutions Specialty Practice

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From data breaches, to network business interruption to cyber extortion, the frequency and severity of cyber-attacks that have struck governments, utilities, individuals, medical and academic institutions and companies of all sizes are on the rise.

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September 14th, 2014

Cyber, Terrorism and New Compensation Structures Highlighted as Critical Emerging Risks

Posted at 10:30 PM ET

2014-sep-emerging-risk-cover-image-crGuy Carpenter today published a new report highlighting emerging risks facing the (re)insurance sector, including cyber-attacks, terrorism and new compensation structures for long-term bodily injuries. The report seeks to identify and categorize these risks that are now confronting the sector, as well as analyze their implications on businesses and (re)insurers.

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September 2nd, 2014

GC Capital Ideas Top Stories: August, 2014

Posted at 1:00 AM ET

1. July 1 Renewals Reveal Continued Double Digit Price Decreases Across Many Lines and Geographies: Guy Carpenter reports that market pressures at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double digit range. As loss activity remained minimal, reinsurers added to surplus capacity and additional capital continued to come into the market via alternative sources.

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2. The Terrorism Reinsurance Market: Despite the recent spike in terrorist-related activity, evolving capacity and the absence of a major terrorism loss for reinsurers have resulted in a softening terrorism reinsurance market in areas with less perceived risk. Although localized terrorism and political violence activity has impacted certain facultative programs and affected pricing and capacity at the local level, adequate terrorism capacity continues to be available in the reinsurance treaty marketplace for certain countries and territories.

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3. Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line index is presented for 1990 through 2014.  The index fell by 11 percent at January 1, 2014.

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4. Guy Carpenter Launches MetaRisk® 7.3: Guy Carpenter announced the release of MetaRisk® 7.3, the latest version of the firm’s premier risk and capital management decision-making tool.

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5. GC Videocast - MENA Insights: Fadi AbuNahl, Chief Executive, Trust Re: In our third MENA Insights interview Fadi AbuNahl, chief executive of Trust Re, describes how the MENA re/insurance market has developed in recent years and what has prompted greater risk retention within the underlying market. He thinks there is plenty of reinsurance premium to go around but cautions against competing on price alone.

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6. The Evolving Terrorist Threat: Terrorist activity over the last 18 months has reflected the changing terrorism landscape. Several important developments have occurred since the beginning of 2013, starting with French military intervention in Mali in January 2013 to prevent the country from becoming a failed state and base for jihadist terrorists.

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7. Risk Profile, Appetite, and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness: Prior to the recent turbulence in the financial markets, insurers and reinsurers were increasing their use of enterprise risk management (ERM) to make risk and capital management decisions. While this was driven in part by rating agencies and regulators, many carriers began to recognize the value of metric-based frameworks and capital models in evaluating their portfolios.

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8. 6.0Mw Earthquake - American Canyon, California: A 6.0-magnitude earthquake was reported by the U.S. Geological Survey (USGS) about 4 miles northwest of American Canyon, California and five miles north-northwest of Napa, California. The quake occurred at 3:20 a.m. local time (10:20 UTC) near the north shore of San Pablo Bay, with a magnitude of 6.0. The quake depth was 7.0 miles (11.3 km).

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9. Chart: Regional Property Catastrophe ROL Index: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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10. Hawaii Double Threat: Hurricanes Iselle and Julio: Hurricane Iselle is poised to become the first hurricane in 22 years to make a direct landfall in Hawaii. According to the Central Pacific Hurricane Center (CPHC), Iselle is located 305 miles east-southeast of Hilo, Hawaii and 510 miles east-southeast of Honolulu, Hawaii. It has already started raining in Hilo and conditions are expected to deteriorate through the day, with the onset of tropical storm conditions this afternoon and hurricane conditions tonight. Trailing Iselle is Hurricane Julio. Julio is presently 1,235 miles east of Hilo, Hawaii. Julio is expected to impact the area shortly following Iselle, but with some uncertainty concerning the expected track and impacts.

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August 28th, 2014

US Terrorism Market: TRIPRA

Posted at 1:00 AM ET

The focus on the availability and affordability of terrorism (re)insurance coverage comes as the US House of Representatives and Senate are currently considering various changes to Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). TRIPRA expires on December 31, 2014 and the future of the federal backstop is the headline issue within the terrorism market this year given that either substantial modification or non-renewal have the potential to impact terrorism coverage in the United States. The full Senate passed their committee’s recommended version 93-4 on July 17, 2014. The House of Representatives has yet to vote on their version. Implications could also be felt outside the United States. How the expiration of TRIPRA would affect the global terrorism market remains unclear but one possible outcome could see increased pressure on other pool structures to dissolve, resulting in fragmentation towards a more open market approach.

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August 25th, 2014

GC Videocast - MENA Insights Speaks To Guy Carpenter’s Chris Pleasant

Posted at 10:00 AM ET

c-pleasant-2012-final-2-2smallIn our fifth and final MENA Insights interview, Chris Pleasant, Managing Director of Guy Carpenter, offers an upbeat vision of the future. While the current soft market presents challenges, it belies the greater re/insurance opportunity ahead. As local insurance markets mature and the approach to reinsurance buying becomes more sophisticated, MENA will enter the next chapter of growth.

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August 18th, 2014

GC Videocast - MENA Insights: Mahomed Akoob, Managing Director, Hannover Re Takaful

Posted at 9:00 AM ET

akoob-photo-3-v3smallerIn our fourth MENA Insights interview Mahomed Akoob, managing director of Hannover Re Takaful, considers the huge potential of the Takaful and Retakaful market in the region, which he thinks could grow at a faster pace than Asia. Islamic finance is driving much of the demand for Shariah compliant insurance coverage to be taken out for major infrastructure projects.

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August 11th, 2014

GC Videocast - MENA Insights: Fadi AbuNahl, Chief Executive, Trust Re

Posted at 9:00 AM ET

fadi-abunahl-3-mug-small-125In our third MENA Insights interview Fadi AbuNahl, chief executive of Trust Re, describes how the MENA re/insurance market has developed in recent years and what has prompted greater risk retention within the underlying market. He thinks there is plenty of reinsurance premium to go around but cautions against competing on price alone. Continue reading…

August 6th, 2014

The Evolving Terrorist Threat

Posted at 1:00 AM ET

Terrorist activity over the last 18 months has reflected the changing terrorism landscape. Several important developments have occurred since the beginning of 2013, starting with French military intervention in Mali in January 2013 to prevent the country from becoming a failed state and base for jihadist terrorists.

Continue reading…

August 4th, 2014

GC Videocast - MENA Insights: Michael Watson, Chairman and CEO, Canopius

Posted at 9:09 AM ET

michael-watson-crop2In our second MENA Insights interview, Michael Watson, chairman and chief executive of Canopius, talks about how the MENA region has all the right ingredients for a growth-minded reinsurer, reveals what he thinks of Lloyd’s decision to open an office in the DIFC and why Canopius is considering establishing its own presence in the region.

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August 4th, 2014

GC Capital Ideas Top Stories: July, 2014

Posted at 1:00 AM ET

1. July 1 Renewals Reveal Continued Double Digit Price Decreases Across Many Lines and Geographies: Guy Carpenter reports that market pressures at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double digit range. As loss activity remained minimal, reinsurers added to surplus capacity and additional capital continued to come into the market via alternative sources.

Read the article>>

 

2. Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line index is presented for 1990 through 2014. The index fell by 11 percent at January 1, 2014.

Read the article>>

 

3. Chart: U.S. Landfall To Basin Ratio - Detected Hurricanes (1900-2013): The chart indicates that the proportion of hurricanes counted in the Atlantic Basin and those that made landfall has been very volatile through the years. While there is indeed a weak correlation between hurricane counts in the Atlantic Basin and the number of U.S. landfalls, statistical significance is a subject of some debate in the scientific community (Coughlin et al., 2009; Dailey et al., 2009).

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4. Chart: Combined Ratio for Guy Carpenter Composite, Q1 2014: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through first quarter, 2014.

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5. 2014 Atlantic Hurricane Season: One Never Truly Knows: The 2004 hurricane season was a weak El Niño year, which brought five landfalling U.S. hurricanes, four of which affected Florida. The risk of a landfalling hurricane is a serious threat for any tropical season, regardless of seasonal outlooks for the Atlantic Basin at large. In fact, sea-surface temperatures along the U.S. coast and northern Caribbean are trending above average, and tropical cyclone development in these areas close to the mainland is cause for concern. Such development depends on short-term weather patterns at the time of occurrence, not on how many hurricanes are expected in the Atlantic basin at large.

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6. The Drivers of Agriculture Insurance in Asia: Introduction: Greater demands are being placed on Asia’s agricultural sector as the region’s rapidly changing economies and their increasingly affluent populations seek to boost living standards. This, in turn, will fuel the development of insurance products necessary to underpin the growth in agriculture.

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7. Chart: Rate Movements by Business Segment: Reports rate movements at January 1, 2014.

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8. Chart: Return On Equity For Guy Carpenter Reinsurance Composite, Q1 2014: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through first quarter, 2014.

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9. Update: Hurricane Arthur: Hurricane Arthur is the first hurricane to make U.S. landfall since 2012, and the earliest to make North Carolina landfall for any hurricane season since 1908. According to the National Hurricane Center (NHC), Arthur made landfall in North Carolina on July 3 at about 11:15 p.m. EDT (0315 UTC), with maximum sustained winds of 100 mph (161 km/hr).  

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10. 2014 Tropical Cyclone Landfall Predictions: A recent study shows it is possible to use a regional climate model to more accurately predict the number of tropical cyclone formations compared to predictions based solely on a global climate model.

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