Archive for the ‘Solution Spotlight’ Category

November 2nd, 2009

Impact of Earnings Volatility on Price/Book Ratios

Posted at 1:00 AM ET

Financial Intelligence Team

The link between a company’s earnings and its share price is intuitive and well documented. Equally logical, although far less studied, is the correlation between the volatility of earnings and share price. The favorable impact of stable earnings on market valuation is intuitive considering market capitalization represents a view of future discounted cash flows and unexpected earnings volatility reduces the predictability of those cash flows.

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August 25th, 2009

New Issue of MMC Viewpoint Magazine Now Available

Posted at 1:00 PM ET

viewpoint_2_2009Marsh & McLennan Companies, Inc. (MMC) has published Volume 2, 2009 of Viewpoint, the journal that highlights the firm’s latest thinking on today’s critical issues and risks. The new issue is available for download on and contains the following articles:

The Hard Part: Strategy Execution — Bridging the Gap Between Vision and Reality — As many companies move from defense to offense in the current economic environment, Mark Nadler of Oliver Wyman Delta cautions senior leaders with six stumbling blocks that may appear when launching a new strategy initiative, with suggestions on how they can be overcome.

Combating Pay Equity Risk in a Recharged Climate: Pay Discrimination Suits in a New Era of Federal Scrutiny – In light of new legislation — such as the widely heralded Lilly Ledbetter Fair Pay Act — and increased regulatory scrutiny, companies must be more proactive in assessing potential issues of compensation equity. Michael Burniston and Brian Levine of Mercer’s Human Capital business discuss the issues and offer seven principles that can help companies mitigate the risk of pay discrimination and the resulting reputational damage.

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June 4th, 2009

Solution Spotlight: Financial Intelligence Team

Posted at 1:00 AM ET

Guy Carpenter’s Financial Intelligence Team (FIT) scours the insurance and reinsurance marketplace for information that affects how risk-bearers manage risk and capital. FIT uses information from financial markets, rating agencies, regulators and other sources to help carriers optimize the deployment of their capital.

There’s more to managing capital than expected loss, value at risk (VaR), and the other basic metrics on which insurers and reinsurers rely. Other factors to be considered include:


None of these factors is static, making it crucial that carriers have access to a resource that continually monitors these areas and understands how they could impact risk-bearers. FIT works with Guy Carpenter’s broking teams and Specialty practices to ensure that our clients benefit from our investment in addressing the full set of issues that shape the business of risk and capital management.

Order Enterprise Risk Analysis, Guy Carpenter’s ERM book >>

May 8th, 2009

Solution Spotlight: i-aXs Reveal

Posted at 1:05 AM ET

p_sidebar_iaxsWorkers compensation medical costs are on the rise — nearly twice as expensive as general medical care. And while writers can’t eliminate their exposure to serious injuries, they can control the true cost drivers to enhance their portfolios. With Guy Carpenter’s Reveal v1.1, a state-of-the-art excess loss model, you can identify the drivers of excess loss — at the class code level — making it possible to develop a plan for protecting your capital and profitability. Accessing Reveal is now easier than ever via Guy Carpenter’s i-aXs web-enabled data delivery platform. Put yourself on the fast track to making informed business decisions by interacting with your data and exposures instead of relying on static reports.

Download the i-aXs Reveal Fact Sheet >>

March 27th, 2009

NERA’s Latest Thinking on SEC Settlements in Ponzi Scheme Cases

Posted at 12:00 PM ET

SEC Settlements in Ponzi Scheme Cases: Putting Madoff and Stanford in Context, a new working paper by NERA Economic Consulting, examines the sizes of Securities and Exchange Commission (SEC) settlements in Ponzi scheme cases. None of the cases, which involve more than 300 defendants in total, was as large as those involving allegations of fraud against Bernard L. Madoff or Sir Allen Stanford. The study reaches back six and a half years and provides summaries of the 12 cases during this period in which investor funds of at least USD50 million were involved.

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January 16th, 2009

NERA Insights: Credit Crisis

Posted at 12:55 AM ET

The ongoing credit crisis, described by former Federal Reserve Chairman Alan Greenspan as a “once in a lifetime tsunami,” is affecting markets and economies around the globe. NERA has created this area as a central repository of our current thinking on issues and developments relating to the crisis, including but not limited to litigation connected to all aspects of the crisis, bankruptcy and restructuring concerns, financial risk management issues, and the various regulatory and agency responses to the crisis. We invite you to check back often, as we will continue to update this section as events warrant.

View NERA’s insights >>

January 14th, 2009

MMC Publishes Viewpoint

Posted at 1:05 AM ET

Marsh & McLennan Companies, Inc. (MMC) today published Volume 1, 2009 of Viewpoint, the journal that highlights the firm’s latest thinking on today’s critical issues and risks. The new issue is available for download on and contains the following articles:

Risk Governance: Seeing the Forest for the Trees - A look into the reasons why risk management failed so many institutions so spectacularly and led, in part, to the financial crisis. Written by Andrew Kuritzkes, a partner and senior member of Oliver Wyman’s Finance and Risk practice, the article goes on to discuss what organizations can do to avoid making the same mistakes.

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November 20th, 2008

Solution Spotlight: i-aXs®: Life, Accident and Health

Posted at 12:50 AM ET

The i-aXs® data management platform has revolutionized risk portfolio management. Guy Carpenter’s award-winning platform gives risk-bearers the power to convert life, accident and health (LA&H) data quickly into clear, concise information that fuels faster, better-informed decision-making. The i-aXs platform contemplates the complex data needs and perils specific to this line of business while providing a combined assessment of property and casualty exposures.

i-aXs products such as Risk ProfileriX, AccumulatoriX, and RealCatiX, hep carriers manage their LA&H exposures with a simple way to dig deeper into their own data.

Learn more about i-aXs >>

Contact the LA&H Specialty practice >>

November 13th, 2008

Solution Spotlight: Casualty Cat

Posted at 1:00 AM ET

Casualty risk is rarely linear. A single event could affect many insureds across several lines of business, triggering disproportionate payouts, depleting balance sheets, and possibly threatening solvency. While carriers have been aware of the domino effect that could follow a casualty event, a realistic approach to risk mitigation has been elusive. Sufficient data and modeling capabilities historically have been in short supply. Fortunately, there is a new way to manage this threat. The Casualty Cat Model, developed jointly by Guy Carpenter and Arium, Ltd., makes it possible to track exposures throughout your portfolio and develop a plan for protecting your capital.

Download the Casualty Cat fact sheet >>

Read about Casualty Cat on GC Capital Ideas >>