Archive for the ‘Week in Review’ Category



January 19th, 2018

Week’s Top Stories: January 13 - 19, 2018

Posted at 11:36 AM ET

Guy Carpenter Reports Capital Growth and Market Resilience Despite 2017 Losses: Guy Carpenter has released an estimate of year-end reinsurance capital levels and results of the January 2018 reinsurance renewal. According to the analysis, capital dedicated to reinsurance continued to grow in 2017 despite catastrophe losses. Due to ongoing excess supply and overall market resilience at January 1, rate firming was generally moderate and pricing shifts focused on client-specific justification.

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Exploring the Excess & Surplus Industry: E&S Market Update and Projections: The excess and surplus (E&S) lines segment of the insurance industry continues to be the essential market for risks for which  the standard insurance market typically does not offer coverage. From extremely hazardous conditions to highly unique business operations and unproven new products, these unconventional risks are often complex and challenging.

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Interoperability: A Case For Open Source: Catastrophe (cat) risk models are fundamental tools for insurers, reinsurers, emergency planners, urban planners, and every business or government entity impacted by natural catastrophes. Since their creation by commercial vendors, computerized models have been essential for risk selection, assessing capital adequacy and measuring profitability, and are critical in both the public and private sectors for catastrophe and emergency response management.

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Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists: Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

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2017 North Atlantic Hurricane Season: The 2017 North Atlantic Hurricane season was one of the most active seasons on record, a historic season in many respects, and certainly an impactful one. Those most severely affected residents are facing a long and difficult recovery that could last for years. They continue to have our thoughts and concerns.

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And you may have missed ….

New Study Identifies Winners in Growing Insurtech Space: A new report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers. The report titled, “InsurTech Caught on the Radar: Hype or The Next Frontier?” is the first systematic in-depth analysis of the insurtech landscape globally, which does not only report the status quo, but provides a forward-looking perspective on the impact on the industry.

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January 12th, 2018

Week’s Top Stories: January 6 - 12, 2018

Posted at 2:49 PM ET

Threat Trends on Major Cyber Attacks in 2017: The Marsh & McLennan Companies Cyber Risk Handbook 2018 is published.

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2017 North Atlantic Hurricane Season: The 2017 North Atlantic Hurricane season was one of the most active seasons on record; a historic season in many respects, and certainly an impactful one.

Read the article >>


The Impact of Insurtech: Here we review recent GC Capital Ideas posts on the growing interest in insurtech and its impact on the insurance industry.

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New Study Identifies Winners in Growing Insurtech Space: A report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

Read the article >>


Chart: Return on Equity for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2005 through third quarter, 2017.

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And you may have missed ….

Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists: Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article >>


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

January 5th, 2018

Week’s Top Stories: December 30, 2017 - January 5, 2018

Posted at 4:58 PM ET

Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists: Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article >>


Chart: Return on Equity for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2005 through third quarter, 2017.

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Chart: Combined Ratio for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents combined ratio of the Guy Carpenter Reinsurance Composite, 2005 through third quarter, 2017.

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Flood Insurance: The 2018 Market Opportunity: Among all natural hazards, flood is the most costly and the most impactful on people. The Insurance Information Institute estimates that only 12 percent of homeowners purchase flood insurance, and most of the purchases are through the National Flood Insurance Program (NFIP). The gap in flood insurance protection represents up to a USD 40 billion potential new market for private insurers in the United States, according to Jonathan Hayes, Managing Director, Guy Carpenter.

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Exploring the P&C Industry: Recent Market Dynamics and Industry Performance: The property and casualty (P&C) insurance industry continues to face economic and market-based challenges. New risks demand coverage; catastrophes are surfacing in unexpected ways and experience shifts are driving casualty lines’ capital needs. In this current environment of disruption and dynamic innovation, managers must analyze all factors in order to adapt to changing opportunities.

Read the article >>


And you may have missed…..

Run-off Specialists Are Gearing Up for Increased Flows: Transaction volumes in the run-off market will continue to grow as a consequence of an influx of capital and increased amounts of buyers and sellers of legacy reserves, according to Andrew Beecroft, Head of M&A Advisory, GC Securities*.

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*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.

December 29th, 2017

Week’s Top Stories: December 23 - 29, 2017

Posted at 9:18 AM ET

Chart: Combined Ratio for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents combined ratio of the Guy Carpenter Reinsurance Composite, 2005 through third quarter, 2017.

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Chart: Source of Earnings for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents source of earnings for the Guy Carpenter Global Reinsurance Composite for 9M, 2017 compared with 9M, 2016.

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Chart: Return on Premiums for Guy Carpenter Reinsurance Composite, Q3, 2017: Chart presents return on premiums for the Guy Carpenter Global Reinsurance Composite, 2005 through third quarter, 2017.

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

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Exploring the P&C Industry: Recent Market Dynamics and Industry Performance: The property and casualty (P&C) insurance industry continues to face economic and market-based challenges. New risks demand coverage; catastrophes are surfacing in unexpected ways and experience shifts are driving casualty lines’ capital needs. In this current environment of disruption and dynamic innovation, managers must analyze all factors in order to adapt to changing opportunities.

Read the article >>


And you may have missed…..

Addressing Flood Peril: Here we review recent GC Capital Ideas posts on Guy Carpenter’s efforts to address the flood peril.

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December 22nd, 2017

Week’s Top Stories: December 16 - 22, 2017

Posted at 10:43 AM ET

Run-off Specialists Are Gearing Up for Increased Flows: Transaction volumes in the run-off market will continue to grow as a consequence of an influx of capital and increased amounts of buyers and sellers of legacy reserves, according to Andrew Beecroft, Head of M&A Advisory, GC Securities*.

Read the article >>

Addressing Flood Peril: Here we review recent GC Capital Ideas posts on Guy Carpenter’s efforts to address the flood peril.

Read the article >>

Industry in investor “sweet spot:” The insurance industry is currently in an investor “sweet spot” and can maintain that position for a long time if insurers drive efficiency measures and focus on capital optimization in response to current market dynamics, believes Richard Hewitt, Head of Business Intelligence, Guy Carpenter.

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Reinsurance Solutions Continue to Achieve Stability and Growth for Cedents: Since its beginnings, the reinsurance product has been a tool that delivers diversified balance sheet solutions to insurers to help protect capital, manage earnings, reduce volatility and promote profitable growth, according to James Nash, President, International, Guy Carpenter.

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Exploring the P&C Industry; Recent Market Dynamics and Industry Performance: The property and casualty (P&C) insurance industry continues to face economic and market-based challenges. New risks demand coverage; catastrophes are surfacing in unexpected ways and experience shifts are driving casualty lines’ capital needs.

Read the article >>

And you may have missed….

Guy Carpenter Hosts International Forum: Building Sustainable Flood Insurance Solutions: Guy Carpenter hosted an international forum entitled “Building sustainable flood insurance solutions” in Berlin on May 9-10. The event brought together leading figures from science and academia, non-governmental organizations and the (re)insurance industry to examine the rapidly growing impact of flooding and explore measures to significantly reduce that impact.

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December 15th, 2017

Week’s Top Stories: December 9 - 15, 2017

Posted at 1:22 PM ET

Exploring the P&C Industry: Recent Market Dynamics and Industry Performance: The property and casualty (P&C) insurance industry continues to face economic and market-based challenges. New risks demand coverage; catastrophes are surfacing in unexpected ways and experience shifts are driving casualty lines’ capital needs.

Read the article >>


Little-Used Retirement Option Gets a Big Boost: With the erosion of defined benefit pension plans and uncertainty around the future of Social Security, the current workforce must find new ways to responsibly manage their income into and through retirement.

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Asia Pacific Catastrophe Report 2017: Executive Summary: A year marked by generally benign loss experience and few large catastrophe events meant that rates continued to remain positive for buyers in the Asia Pacific region throughout 2017. At the same time, the trend for steady growth in limit purchased continued. Much of the new limit purchased tends to be at the top of programs, and this feeds through to lower overall average rates on line (ROL), which is also reflected in the indices.

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Flood Insurance: The 2018 Market Opportunity: Among all natural hazards, flood is the most costly and the most impactful on people. The Insurance Information Institute estimates that only 12 percent of homeowners purchase flood insurance, and most of the purchases are through the National Flood Insurance Program (NFIP).

Read the article >>


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

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And you may have missed….

Critical Tool for Making Strategic Enterprise Risk Management Decisions: Initiatives for insurers’ profitable growth in 2018 will come with significant challenges and considerations for management. Stochastic Based BCAR and an extended soft market teetering on change will require insurers to evaluate growth objectives carefully.

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December 8th, 2017

Week’s Top Stories: December 2 - 8, 2017

Posted at 11:00 AM ET

Factors contributing to the Gap Between Economic and Insured Losses; The factors that contribute to the gap between economic and insured losses.

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Flood Insurance; The 2018 Market Opportunity; The U.S. insurance industry is actively seeking new opportunities for growth in a challenging market by identifying untapped customer needs. The potential flood market is over five times the size of the most often mentioned new market, cyber insurance.

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Critical Tool for Making Strategic Enterprise Risk Management Decisions; There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line.

Read the article>>


Asia Pacific Catastrophe Report 2017: Executive Summary; A year marked by generally benign loss experience and few large catastrophe events meant that rates continued to remain positive for buyers in the Asia Pacific region throughout 2017.

Read the article>>


Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists; Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article>>


And, you may have missed….

Study Identifies Winners in Growing Insurtech Space; A 2017 report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

Read the article>>


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

December 1st, 2017

Week’s Top Stories: November 25 - December 1, 2017

Posted at 11:00 AM ET

Study Identifies Winners in Growing Insurtech Space: A 2017 report from consulting firm Oliver Wyman and insurtech investor Policen Direkt analyzes insurtech business models worldwide and pinpoints winners and losers.

Read the article >>


The Transfer of Pandemic Risk From the Public Sector: 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.

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

Read the article >>


Guy Carpenter Asia-Pacific Climate Impact Centre Publishes Annual Report:  The report, covering the Centre’s activities during 2016, is divided into five sections.

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Guy Carpenter reports US Insurance Market at a Crossroads But Opportunity Exists: Guy Carpenter released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article >>


And, you may have missed….

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.

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November 24th, 2017

Week’s Top Stories: November 18 - 24, 2017

Posted at 10:00 AM ET

Understanding Systemic Cyber Risk; Insights Through Pandemic Behavior: The (re)insurance industry may benefit from examining the similarities between disease spread and cyberattacks by creating more certainty and understanding around this evolving product and peril.

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Survey: 80 Percent Say Treasury Plays a More Strategic Role Today Than Three Years Ago: Treasurers increasingly play a more strategic role as their traditional roles become more critical to their organizations and they assume a wider range of responsibilities, including investor relations, insurance risk management, integrating supply chain management and real estate.

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Just Say “Know” to Insurtech: Insurtech’s impact on the insurance industry is surging, reminding us of the influence that technological change and growth bring to the modern consumer and business landscapes and individual industries.

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From Risk to Resilience: Marsh & McLennan Companies Cyber Handbook 2018: Perspectives on the Next Wave of Cyber: The 2018 edition of the Marsh & McLennan Companies Cyber Risk Handbook provides insights on the shifting cyber threat environment, emerging global regulatory trends and best practices in the journey to cyber resiliency.

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Guy Carpenter Reports US Insurance Market at a Crossroads but Opportunity Exists: Guy Carpenter today released a study outlining a dynamic insurance industry facing a changing economy and pressure in once-stable lines, but with opportunity for those with management skill and understanding of risk.

Read the article >>


And, You May Have Missed….

Insurers Challenged by Forces of Technology Disruption: Here we review recent GC Capital Ideas posts on the need for the insurance industry to come to terms with the forces of technological disruption challenging their business models.

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