May 6th, 2019

Chart: Source of Earnings for Guy Carpenter Reinsurance Composite, Year-end 2018

Posted at 1:00 AM ET

Chart presents source of earnings for the Guy Carpenter Global Reinsurance Composite, comparing year-end 2017 with year-end 2018.

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May 6th, 2019

Chart: Return on Premiums for Guy Carpenter Reinsurance Composite, Year-end 2018

Posted at 1:00 AM ET

Chart presents return on premiums for the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2018.

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May 3rd, 2019

Week’s Top Stories: April 27 - May 3, 2019

Posted at 10:00 AM ET

Methodological Considerations in the Statistical Modeling of Catastrophe Bond Prices: John Major has authored an article that aims to help actuaries, financial analysts, statisticians, data scientists and their clients better investigate how property catastrophe risk, and particularly catastrophe bonds, are  priced.

Read the article >>


Closing The Gap: Insurance Penetration and Public Sector Risk Financing in Asia Pacific: In recent years, the issue of low penetration in catastrophe insurance across the growing economies of Asia Pacific, and the critical protection gap between economic losses caused by natural disaster events and insurance-covered losses are receiving the attention they merit. The insurance industry can play a significant role in narrowing the gap to help ensure sustainable economic development in one of the most dynamic regions of the world.

Read the article >>


Understanding Flood Risk in Malaysia Through Catastrophe Modeling: According to Malaysia’s Department of Irrigation and Drainage, the many rivers running through the country put about 9 percent of the total land area under flood risk, potentially affecting 2.7 million people. Rapid urbanization is only going to worsen the problem through rising population concentrations and at-risk infrastructure, land consumption and the channeling of water courses.

Read the article >>


A Matter of Time: Why the Clock is Ticking on Stop-Loss Reinsurance: As cutting-edge science leads to new, high-cost drugs and therapies, insurers are seeing uncapped claims costs grow higher. Stop-loss reimbursements generally are on the rise, with an increasing number of employers being reimbursed for a stop-loss claim every year.

Read the article >>


Are You at Risk? Managing Affirmative and Silent Cyber Risk Accumulation: The script of the global cyber insurance market is still mainly being written in the United States. Approximately 85 percent of global cyber insurance premiums of between USD 2.5 and 3.5 billion are generated in the United States. The take-up rate for this line of business in Asia is still relatively low, but the Japan market has been experiencing steady growth in the last 24 months.

Read the article >>


And, you may have missed….

Investing in a Time of Climate Change - The Sequel: A new report, Investing in a Time of Climate Change - The Sequel, documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition risks) on investment return expectations.

Read the article >>


Click here for more insights from Guy Carpenter >>

May 2nd, 2019

Understanding Flood Risk in Malaysia Through Catastrophe Modeling

Posted at 1:00 AM ET

Narathip Sutchiewcharn, Senior Vice President and Claudio Saffioti, Catastrophe Model Developer

Contact

According to Malaysia’s Department of Irrigation and Drainage, the many rivers running through the country put about 9 percent of the total land area under flood risk, potentially affecting 2.7 million people. Rapid urbanization is only going to worsen the problem through rising population concentrations and at-risk infrastructure, land consumption and the channeling of water courses.

Continue reading…

May 1st, 2019

GC Capital Ideas Top Stories: April, 2019

Posted at 1:00 AM ET

1. Are You at Risk? Managing Affirmative and Silent Cyber Risk Accumulation: The script of the global cyber insurance market is still mainly being written in the United States. Approximately 85 percent of global cyber insurance premiums of between USD 2.5 and 3.5 billion are generated in the United States. The take-up rate for this line of business in Asia is still relatively low, but the Japan market has been experiencing steady growth in the last 24 months.

Read the article >>

2. Insurance Risk Management 2025: Navigating the Digital Future: How could the insurance industry look in 2025, and what are the implications for the Risk function? A video from Guy Carpenter affiliate Oliver Wyman offers a futuristic glimpse of a rapidly evolving industry.

Read the article >>

3. Facultative or Treaty and Why the Need for Hybrid Solutions: Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore up capital and satisfy rating agencies.

Read the article >>

4. NotPetya Was Not Cyber “War”: NotPetya wreaked havoc for some large companies, costing them billions of dollars in lost revenue, damaging computer systems, and requiring significant expense to restore global operations. In its wake, entire industries reassessed their practices for patching, business continuity, supply chain interruption, and more.

Read the article >>

5. A Matter of Time: Why the Clock is Ticking on Stop-Loss Reinsurance: As cutting-edge science leads to new, high-cost drugs and therapies, insurers are seeing uncapped claims costs grow higher. Stop-loss reimbursements generally are on the rise, with an increasing number of employers being reimbursed for a stop-loss claim every year.

Read the article >>

6. 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 >>

7. When the Going Gets Tough, the Tough Get Going: Overcoming the Cyber Risk Appetite Challenge: The scale of recent attacks and resulting media attention, supervisory pressures to upgrade cyber risk management and the pace of technology innovation to keep up with are increasing rapidly. These factors are compelling financial institutions to have a clear understanding of the cyber risks they face, and to determine the level of cyber risk the institution is willing to accept.

Read the article >>

8. 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 >>

9. Investing in a Time of Climate Change - The Sequel: A new report documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition risks) on investment return expectations. The Sequel models three climate change scenarios, a 2°C, 3°C and 4°C average warming increase on preindustrial levels, over three timeframes - 2030, 2050 and 2100.

Read the article >>

10. Asia’s Health Care Industry Reels from Cyberattacks: Health care is one of the sectors most vulnerable to cyberattacks, with more than one in four (27 percent) health care organizations reporting that they have been a victim of a cyberattack in the past 12 months. This is more than financial institutions (20 percent) and nearly twice the incidence in the communications, media and technology sector (14 percent). Despite this, respondents from the health care industry underestimate the likelihood of a cyberattack.

Read the article >>

Click here to request updates from Guy Carpenter >>

April 30th, 2019

Flood Event – Saint Lawrence and Ottawa Valley

Posted at 1:32 PM ET

ottawa-valley-smallSummary

A significant flood event has affected portions of the Ottawa and Saint Lawrence River Valleys and surrounding watersheds. The flooding is a result of recent snowmelt from a significant snowpack, coupled with recent periods of heavy rainfall affecting the area. Evacuations have affected over 9,500. Several thousands of homes have been inundated by the resulting floodwaters, and several thousand more are under threat in eastern Ontario and western Québec.

Continue reading…

April 30th, 2019

Closing The Gap: Insurance Penetration and Public Sector Risk Financing in Asia Pacific

Posted at 1:00 AM ET

michael-schwarz_resizedIn recent years, the issue of low penetration in catastrophe insurance across the growing economies of Asia Pacific, and the critical protection gap between economic losses caused by natural disaster events and insurance-covered losses are receiving the attention they merit. The insurance industry can play a significant role in narrowing the gap to help ensure sustainable economic development in one of the most dynamic regions of the world, according to Michael Schwarz, Head of Public Sector - Asia Pacific, Guy Carpenter.

Continue reading…

April 29th, 2019

Methodological Considerations in the Statistical Modeling of Catastrophe Bond Prices

Posted at 1:00 AM ET

major_john_gcciJohn Major, Director of Actuarial Research

Contact

John Major has authored an article that aims to help actuaries, financial analysts, statisticians, data scientists and their clients better investigate how property catastrophe risk, and particularly catastrophe bonds, are  priced.

As in any technical discipline, statistical modeling has its customs, templates and default modes of operation, which are typically learned early in a practitioner’s education. These practices persist as “standard operating procedures,” to be modified as needs arise. The purpose of this article is to challenge those default modes as they have appeared in 21st century-published catastrophe bond pricing research.

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April 26th, 2019

Week’s Top Stories: April 20 - 26, 2019

Posted at 10:00 AM ET

Facultative or Treaty and Why the Need for Hybrid Solutions: Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore up capital and satisfy rating agencies.

Read the article >>


NotPetya Was Not Cyber “War”: NotPetya wreaked havoc for some large companies, costing them billions of dollars in lost revenue, damaging computer systems, and requiring significant expense to restore global operations. In its wake, entire industries reassessed their practices for patching, business continuity, supply chain interruption, and more.

Read the article >>


A Matter of Time: Why the Clock is Ticking on Stop-Loss Reinsurance: As cutting-edge science leads to new, high-cost drugs and therapies, insurers are seeing uncapped claims costs grow higher. Stop-loss reimbursements generally are on the rise, with an increasing number of employers being reimbursed for a stop-loss claim every year.

Read the article >>


Investing in a Time of Climate Change - The Sequel: A new report documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition risks) on investment return expectations. The Sequel models three climate change scenarios, a 2°C, 3°C and 4°C average warming increase on preindustrial levels, over three timeframes - 2030, 2050 and 2100.

Read the article >>


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….

The Transformation of Australian and New Zealand Life Insurance: The life insurance industry in Australia is facing unprecedented challenges from forces within and from the effects of an increasingly globalized economy. As life industry profitability has declined in Australia in recent years, the underlying manufacturing business model is rapidly changing.

Read the article >>


Click here to request updates from Guy Carpenter >>