June 15th, 2017

Insurance Industry Ripe for Disruption, Says VJ Dowling; MMC Young Professionals’ Global Forum 2017

Posted at 4:30 AM ET

The insurance industry will be profoundly disrupted by technological change, Vincent J. Dowling Jr., Managing Partner of Dowling & Partners Securities LLC, told attendees at MMC’s Young Professionals’ Global Forum in London.

Continue reading…

June 15th, 2017

Analytics: Fueling Risk-Informed Decisions: Part III: Strategic and Risk Capital Management

Posted at 1:00 AM ET

tim_059_headshot

Tim Gardner, President, North America

Contact

Insurers who rely on strategic risk and capital management analytics to optimize their return on capital require a proactive capital management strategy that is in line with Own Risk and Solvency Assessment (ORSA), rating agency objectives and/or management’s internal capital adequacy benchmarks. To support this objective, a wide variety of tools and solutions are available to help measure capital adequacy - from deterministic models to licensable enterprise-level dynamic financial modeling solutions that advance a company’s ability to measure risk, profit and capital to optimize returns.

Continue reading…

June 14th, 2017

Good Leaders Must Empower Others and Embrace Change, Says Former SAS Commander Butler; MMC Young Professionals’ Forum 2017

Posted at 8:32 AM ET

The lessons learned during a distinguished military career, during which the nature of the threat changed dramatically, can be applied to leading in the business world, Ed Butler, Head of Risk Analysis at Pool Re, told delegates gathered at the MMC Young Professionals’ Forum in London Wednesday.

Continue reading…

June 14th, 2017

Marsh & McLennan Encourages the Industry’s Next Generation to Embrace Opportunities Created by Change

Posted at 2:28 AM ET

Marsh & McLennan Companies, Inc.’s Young Professionals’ Global Forum 2017 opened in London today, with over 600 delegates attending the two-day event to hear from leading executives about the opportunities created by transformational changes impacting the insurance industry. Launched in 2013, this is the third year that MMC has sponsored this event which brings together insurance executives and the industry’s rising professionals. The Forum will culminate with a Gala Night celebrating the insurance industry’s extraordinary talent. All proceeds from the event will be donated to Teenage Cancer Trust.

Continue reading…

June 14th, 2017

Analytics: Fueling Risk-Informed Decisions: Part II: Portfolio Analytics

Posted at 1:00 AM ET

tim_059_headshot

Tim Gardner, President, North America

Contact

With robust portfolio analytics, including advanced actuarial and catastrophic risk modeling, insurers are able to manage portfolio risk with confidence. Notable new portfolio-based models are being used for emerging areas such as casualty catastrophe and cyber risk assessment. Significant advances in sub peril modeling, such as for flood, have also transformed previously non-modeled perils into modeled perils, greatly improving knowledge and underwriting decisions in many regions.

Continue reading…

June 13th, 2017

Analytics: Fueling Risk-Informed Decisions: Part I

Posted at 1:00 AM ET

tim_059_headshot

Tim Gardner, President, North America

Contact

Today’s rapidly changing global environment presents insurers with many challenges and opportunities as capital management and risk transfer techniques evolve at an unprecedented pace. Stakeholders, regulators and ratings agencies are deepening their focus on risk management practices, and revolutionary developments in technology, including the Internet of Things and hyper-connectivity, are driving companies to adapt to the challenges that senior management faces to support risk management decisions material to their business.

Continue reading…

June 12th, 2017

GC Capital Ideas CAT-i Stories: For First Half, 2017

Posted at 1:00 AM ET

Here is a look back at the CAT-i stories covering January through mid-June of 2017.

Continue reading…

June 9th, 2017

Week’s Top Stories: June 3 — 9, 2017

Posted at 6:30 AM ET

Strategic Growth Analysis - The Guy Carpenter Approach: The changes in today’s property and casualty (P&C) insurance marketplace present insurers with many challenges to capital management and risk transfer techniques. Insurers are compelled to leverage their capital positions to increase and diversify their market shares to an unprecedented degree. Preserving the status quo is not an option for long-term viability. Profitable growth is a key priority for companies seeking additional return. Companies need to enter new lines of business or geographies strategically with proper analysis. Guy Carpenter offers proprietary analytical tools, intellectual capital and expertise to help companies determine and evaluate their growth plans while maintaining an acceptable level of risk and profitability.

Read the article>>


Chart: The Matrix of Cyber and Property Lines Insurance Coverage: Chart examines the policy coverage matrix between cyber and property lines of insurance coverage. Below shows how the four types of subject matter (columns A-D) are generally covered by direct policies, relative to the various types of cyber and property perils (rows 1-5). Where cover is predominantly provided by property or cyber, the relevant icon is shown in blue. Where there is a degree of ambiguity, or coverage is limited, the icon is shown in gray.

Read the article>>


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. This greater strategic role with more responsibilities illustrates the increasingly vital role that treasurers play in supporting senior executives, according to new research from the Association for Financial Professionals (AFP).

Read the article>>


Chart: Where Do (Re)insurers See Biggest Growth Opportunities?: Chart highlights the result of a survey taken of 107 insurance and reinsurance professionals conducted by Guy Carpenter at the 2016 annual meeting of the Property Casualty Insurers Association of America when asked where they see the biggest growth opportunities.

Read the article>>


Guy Carpenter Sees Market Shift Towards Core Model Strategy: Insurers and reinsurers are increasingly adopting a core model strategy based around a detailed assessment of its capabilities, instead of the multi-model or blended approach as investment in modeling capabilities comes under pressure, says Matthew Eagle, Head of GC Analytics® - International at Guy Carpenter.

Read the article>>


And, You May Have Missed…

Chart: Return On Premiums For Guy Carpenter Reinsurance Composite, YE 2016: Chart presents return on premiums for the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2016.

Read the article>>


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

June 9th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

Contact

“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

Continue reading…

June 8th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part I

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

Contact

Industry Must Adapt to Emerging Segmentation Phase

Pricing declines continued in the insurance-linked securities (ILS) segment of alternative capital. In turn, this has prompted questions about the sustainability of lower pricing and capacity post-catastrophe event, suggesting that traditional reinsurers’ models and the traditional reinsurance and alternative capital mix of capital sources still need to evolve. Maintaining premium rate adequacy and stable capacity requires better access to the expanding sources of capital and awareness of the benefits of better risk syndication and segmentation, according to David Priebe, Vice Chairman at Guy Carpenter and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities.

Continue reading…