Archive for the ‘Week in Review’ Category



March 22nd, 2019

Week’s Top Stories: March 16 - 22, 2019

Posted at 10:00 AM ET

Global Cyber Terrorism Incidents on the Rise: The nature of the terrorism threat facing society has changed considerably in the last 20 years. Previously, governments and (re)insurers structured their mitigation strategies and responses to deal with attacks that were large in scale.

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Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert: When PG&E filed for Chapter 11 protection in January, The Wall Street Journal dubbed it the “first climate change bankruptcy.” The California power utility was facing USD 30 billion in potential liabilities following a series of devastating wildfires linked to its equipment. Wildfires were made more likely by a prolonged period of hot, dry weather that had reduced the surrounding forests to tinder and which scientists have since attributed to climate change.

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The Transformation of Biological Risks: Deliberate Attacks: Received wisdom is that biological agents are an unattractive weapon, in part because of the perceived risks involved in their production, and also because of the difficulty of targeting particular groups or populations. But this is not an area for complacency. A report commissioned last year by the U.S. Department of Defense highlights the “almost limitless list of malicious activities that could potentially be pursued with biology” and draws parallels with the importance of advances in physics and chemistry during the Cold War.

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GC Capital Ideas Covers Modeling Developments: GC Capital Ideas presents a review of our recent stories covering modeling for various perils.

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Affirmative Versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of “silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>


And, you may have missed….

First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific: The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance-linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover and represents the first such transaction by the company.

Read the article >>


*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, 12 Endeavour Square, London, E20 1JN. 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.

March 15th, 2019

Week’s Top Stories: March 9 - 15, 2019

Posted at 10:00 AM ET

GC Capital Ideas Covers Modeling Developments: GC Capital Ideas presents a review of our recent stories covering modeling for various perils.

Read the article >>


Prioritizing Business Risks in Japan: In 2019, technological and geopolitical threats continue to be at the center of the risk landscape for businesses in Japan. Other vulnerabilities have also resurfaced, notably the persistent threats of natural catastrophes, the country’s tight labor market and the specter of an asset bubble.

Read the article >>


Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Read the article >>


MMC Cyber Risk Handbook 2019: Cyber risk is a critical concern for business leaders. According to the World Economic Forum’s 2018 Executive Opinion Survey of more than 12,500 executives, large cyber-attacks are ranked as the #1 risk for doing business virtually across all advanced economies. As companies develop their approach to this dynamic and challenging threat in 2019, there are some emerging trends that they should consider.

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Chart: Evolution of the Sidecar Market: Chart presents the evolution of sidecar capacity compared with the Global Property Catastrophe ROL Index, 2005 - 2018.

View the chart >>


And, you may have missed….

GC Securities* Acts as Sole Structurer and Placement Agent for First Cat Bond to Transfer Standalone Terrorism Risk to the ILS Market: GC Securities announced the placement of GBP 75,000,000 Series 2019 Principal At-Risk Variable Rate Notes issued through Baltic PCC Limited, a protected cell company domiciled in the United Kingdom, on behalf of Pool Re.

Read the article >>


Click here to register to receive email 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, 12 Endeavour Square, London, E20 1JN. 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.

March 8th, 2019

Week’s Top Stories: March 2 - 8, 2019

Posted at 10:00 AM ET

Sidecars: Capitalizing on Market Cycles to Improve Client Solutions: Following U.S. hurricanes Katrina, Rita and Wilma in 2005 and the ensuing “hard” property catastrophe reinsurance market, reinsurers and investors increasingly started turning to sidecar insurance linked securities to access new and replacement capacity.

Read the article >>


Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril.

Read the article >>


Identifying and Responding to a Dysfunctional Culture: Loss of clients, mass employee walk-outs, shareholder lawsuits, stock price drops, hundreds of CEOs and executives turnovers, and countless daily instances of organizational inefficiencies - these are just some of the recent impacts of cultural dysfunction.

Read the article >>


Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>


First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific: The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance-linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover, and represents the first such transaction by the company.

Read the article >>


And, you may have missed….

GC Securities* Acts as Sole Structurer and Placement Agent for First Cat Bond to Transfer Standalone Terrorism Risk to the ILS Market: GC Securities announced the placement of GBP 75,000,000 Series 2019 Principal At-Risk Variable Rate Notes issued through Baltic PCC Limited, a protected cell company domiciled in the United Kingdom, on behalf of Pool Re.

Read the article >>


Click here to register to receive email 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, 12 Endeavour Square, London, E20 1JN. 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.

March 1st, 2019

Week’s Top Stories: February 23 - March 1, 2019

Posted at 10:00 AM ET

First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific: The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance-linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover, and represents the first such transaction by the company.

Read the article >>


GC Videocast - 2019 Cyber Landscape: New Regulations, Risks and Management Expectations: Cyber Practices experts at Guy Carpenter’s affiliate, Marsh, held a video webcast to look at how changing cyber risk exposures, regulations and best practices will change the cyber risk management landscape in 2019.

View the video >>


Asia Region Most affected by Rising Sea Levels: On a global scale, some cities are sinking faster than sea levels are rising, says the Global Risks Report 2019, which was produced by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

Read the article >>


Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril.

Read the article >>


GC Securities* Acts as Sole Structurer and Placement Agent for First Cat Bond to Transfer Standalone Terrorism Risk to the ILS Market: GC Securities announced the placement of GBP 75,000,000 Series 2019 Principal At-Risk Variable Rate Notes issued through Baltic PCC Limited, a protected cell company domiciled in the United Kingdom, on behalf of Pool Re.

Read the article >>


And, you may have missed….

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of “silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>


Click here to register to receive email 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, 12 Endeavour Square, London, E20 1JN. 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.

February 22nd, 2019

Week’s Top Stories: February 16 - 22, 2019

Posted at 10:00 AM ET

Sidecars: Capitalizing on Market Cycles to Improve Client Solutions: Following U.S. hurricanes Katrina, Rita and Wilma in 2005 and the ensuing “hard” property catastrophe reinsurance market, reinsurers and investors increasingly started turning to sidecar insurance linked securities to access new and replacement capacity.

Read the article >>

Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Read the article >>

Risk Financing Strategies Needed as Exposure to Flood Increases: The affordability of flood resilience will become an increasingly critical issue as rising sea levels and urbanization expose a growing number of people and population centers to floods, says the World Economic Forum’s Global Risk Report 2019.

Read the article >>

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Cybersecurity, Strategic and Financial Risks to Dominate Risk Landscape: According to nearly 400 treasury professionals surveyed, strategic and financial risks, along with cybersecurity, will dominate the risk landscape for the next 18-36 months.

Read the article >>

And, you may have missed …

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus  “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of ”silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>

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

February 15th, 2019

Week’s Top Stories: February 9 - 15, 2019

Posted at 10:00 AM ET

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Cybersecurity, Strategic and Financial Risks to Dominate Risk Landscape: According to nearly 400 treasury professionals surveyed, strategic and financial risks, along with cybersecurity, will dominate the risk landscape for the next 18-36 months.

Read the article >>

Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Read the article >>

IoT Devices Increase Security Incident Risks: Industrial control systems, smart buildings and homes, pacemakers, cameras, and even fish tanks - all of these Internet of Things (IoT) products have been hacked by cyber-attackers looking to disrupt networks and extort money from users, says the report The US Financial and Professional Lines Market in 2019: Our Top 10 List by Guy Carpenter’s affiliate company, Marsh.

Read the article >>

Automobile Liability Segment Outlook: In 2017, writers of automobile (auto) liability insurance continued to cope with deteriorating combined ratios, which remained above 100 percent for the seventh consecutive year. While carriers have implemented effective strategies that improved their operations and as a result are achieving improved expense ratios, evolving market and environment factors continue to challenge auto insurers. Consequently, improved expense ratios and premium increases did not rise as rapidly as claims and losses. The outlook for the sector remains negative.

Read the article >>


And, you may have missed …

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

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

February 8th, 2019

Week’s Top Stories: February 2 - 8, 2019

Posted at 10:00 AM ET

Automobile Liability Segment Outlook: In 2017, writers of automobile (auto) liability insurance continued to cope with deteriorating combined ratios, which remained above 100 percent for the seventh consecutive year. While carriers have implemented effective strategies that improved their operations and as a result are achieving improved expense ratios, evolving market and environment factors continue to challenge auto insurers. Consequently, improved expense ratios and premium increases did not rise as rapidly as claims and losses. The outlook for the sector remains negative.

Read the article >>

Engaging the Workforce in Digital Transformation: A New Model to Enable Your Digital Strategy: For an organization to succeed in adopting technological solutions they must find ways to engage their workforce in the digital transformation or they will fall behind their competitors.

Read the article >>

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

Environmental Disasters Leading to Increased Disruption to Supply-Chains: As environmental risks crystallize with increasing frequency and severity, the impact on global value chains is likely to intensify, weakening overall resilience, according to Global Risks Report 2019, which was produced by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

Read the article >>

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>


And, you may have missed …

Blockchain Today: A Young Technology That Could Change Everything: Today, blockchain technology is about where the Internet was in the early 1990s. It’s an exciting and important technology but one that is still in its fledgling stage. The truth is, similar to how people were trying to figure out the Internet in the early 1990s, no one really knows exactly how it will revolutionize economies and cultures. But we do know—much like the Internet in the early 1990s—that blockchain is going to be a game changer.

Read the article >>

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

February 1st, 2019

Week’s Top Stories: January 26 - February 1, 2019

Posted at 10:00 AM ET

The Evolving Directors and Officers Market: In the third quarter of 2018, primary and total program pricing for directors and officers (D&O) liability insurance increased for the third consecutive quarter, indicates the report, The US Financial and Professional Lines Market in 2019: Our Top 10 List, produced by Guy Carpenter’s affiliate, Marsh.

Read the article >>

Blockchain Today: A Young Technology That Could Change Everything: Today, blockchain technology is about where the Internet was in the early 1990s. It’s an exciting and important technology but one that is still in its fledgling stage. The truth is, similar to how people were trying to figure out the Internet in the early 1990s, no one really knows exactly how it will revolutionize economies and cultures. But we do know—much like the Internet in the early 1990s—that blockchain is going to be a game changer.

Read the article >>

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Excess and Surplus (E&S) Segment Outlook: The E&S lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat.

Read the article >>

Sydney Hailstorms, December 20, 2018: A severe convective storm affected large parts of New South Wales, including Sydney, the Central Coast and Wollongong from 4:00 to 7:00 pm on December 20, 2018. The storm generated large hail, damaging winds and flash flooding in many areas of the state. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of 8 cm diameter in Berowra Heights in Sydney’s north and similar size hail in Casula and Liverpool in the city’s southwest.

Read the article >>

And, you may have missed …

GC Videocast - Global Risks Report 2019: John Drzik, President of Global Risk and Digital at Guy Carpenter’s sister company, Marsh, explains the key findings and takeaways from The Global Risks Report 2019. The 14th edition of The Global Risks Report is prepared by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

Watch the video >>

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

January 25th, 2019

Week’s Top Stories: January 19 - 25, 2019

Posted at 10:00 AM ET

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

See the chart >>

Guy Carpenter Announces New Division and Senior Appointments Designed to Deliver Enhanced Client Value: Guy Carpenter today announced the formation of a new Global Capital Solutions Group and a series of new leadership appointments related to the Jardine Lloyd Thompson Group plc (JLT) acquisition. These appointments will become effective upon closing of the transaction between Guy Carpenter’s parent company, Marsh & McLennan Companies, and JLT, which remains subject to the receipt of certain antitrust and financial regulatory approvals.

Read the article >>

Excess and Surplus (E&S) Segment Outlook: The E&S lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat.

Read the article >>

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

WEF Global Risks Report: Heightened Geopolitical and Geoeconomic Tensions: Profound political, economic, societal, technological and environmental transformations are occurring at an unprecedented scale and pace and have become a part of day-to-day business life, according to the 14th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and other partners.

Read the article >>

And, you may have missed …

Top Financial and Professional Lines Risks in 2019: The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh.

Read the article >>

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