Posts Tagged ‘BCAR’



February 8th, 2016

Rating Agency Developments, Part II; Europe and Asia Pacific

Posted at 1:00 AM ET

Europe

In anticipation of the January 2016 rollout, the European insurance industry focused squarely on Solvency II. Rating agencies refrained from instituting any new criteria.

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February 4th, 2016

Rating Agency Developments, Part I

Posted at 1:00 AM ET

There is a great deal of overlap between the goals of government regulators and credit rating agencies. The difference, however, is in the output, with regulators providing a license to trade, or not, and the rating agencies offering a graduated scale of relative strength. Regulatory solvency approval can be viewed as a “qualifier” or minimum standard required to be considered by a customer. A credit rating, on the other hand, can act as a “winner” or differentiating factor that results in a successful sale.

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December 15th, 2015

Guy Carpenter Announces MetaRisk® 8.1, the Latest Version of its Premier Economic Capital Modeling Tool Suite

Posted at 11:40 PM ET

Guy Carpenter today announced the release of MetaRisk® 8.1, the latest version of the industry’s leading dynamic financial analysis platform.

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October 26th, 2015

Stochastic-based BCAR: Do You Understand Your “Capital-print”?

Posted at 1:00 AM ET

murray_mark-smMark Murray, Senior Vice President

Technology and innovation continue to change the world around us, creating both opportunities and new challenges for the (re)insurance industry. Advances in risk quantification such as predictive analytics and capital modeling, to name a few, are changing the way we underwrite, price and manage risk. Similarly, technology is allowing A.M. Best (Best’s) to advance the analytics of risk supporting its assessment of balance sheet strength. Taking advantage of stochastic modeling technology, the evaluation of risk within Best’s capital model is undergoing a fairly substantial overhaul to broaden the lens used to analyze risk relative to capital. The technology allows efficient production of multiple capital metrics adjusted for a range of risk levels rather than risk represented by just one data point, providing deeper insights into balance sheet strength, risk profile and risk appetite. The benefit of this overhaul will be a rating that provides greater differentiation among companies, a more informed dialogue around capital versus risk and a more concise measure of “excess” or “deficient” capital. This new lens on capital will significantly influence the way (re)insurers view, measure, communicate and possibly even manage risk.

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September 3rd, 2015

Dedicated Reinsurance Capital Estimate at July 1, 2015

Posted at 1:00 AM ET

Guy Carpenter’s estimate of dedicated reinsurance sector capital as of July 1, 2015 was again produced through our work with A.M. Best. Our estimate is not a simple aggregation of the capital of all companies that write reinsurance since some capital is allocated to the insurance business or other outside interests. In fact, we have seen increased evidence that some companies are shifting capital toward insurance lines and away from reinsurance lines based on the current rate environment. A.M. Best and Guy Carpenter have estimated the amount of capital dedicated to writing reinsurance by reviewing A.M. Best’s proprietary capital model (BCAR) results as well as line of business allocations. Our current estimate of total capital dedicated to reinsurance is approximately USD 400 billion of which the convergence capital, including catastrophe bonds, industry loss warranties (ILWs), collateralized reinsurance and sidecars is USD 66 billion.

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May 6th, 2015

New Solutions Help Mutual Insurers Face Market Challenges

Posted at 1:00 AM ET

woods_jay-125haldeman_john_bioJay Woods and John S. Haldeman II, Co-chairmen of Guy Carpenter’s Mutual Company Specialty Practice

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Mutual insurance companies of all sizes currently face challenging market conditions where success requires not only focused distribution and operational excellence, but also access to increasingly sophisticated analytics services and products. How these firms use their resources and advanced technology to respond to these issues will separate market outperformers from underperformers.

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March 10th, 2015

Analytics Can Support Capital Modeling and Benchmarking

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas stories on how better analytics can support (re)insurers’ capital modeling and benchmarking.

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October 29th, 2014

New Solutions Help Mutual Insurers Face Market Challenges

Posted at 1:00 AM ET

woods_jay-125haldeman_john_bioJay Woods and John S. Haldeman II, Co-chairmen of Guy Carpenter’s Mutual Company Specialty Practice

Contact

Mutual insurance companies of all sizes currently face challenging market conditions where success requires not only focused distribution and operational excellence, but also access to increasingly sophisticated analytics services and products. How these firms use their resources and advanced technology to respond to these issues will separate market outperformers from underperformers.

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October 26th, 2014

A.M. Best’s New Analytics Will Broaden and Improve P&C Industry Capital Modeling and Benchmarking of Tolerances

Posted at 1:00 AM ET

snyder_jack_100eric-simpson-smallmark-murry-small-1201Jack Snyder, Managing Director, Business Development and Head of the Rating Agency Practice, Strategic Advisory; Eric Simpson, Managing Director in the Rating Agency Practice and Mark Murray, Senior Vice President in the Rating Agency Practice

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A.M. Best’s rating analytics continue to evolve and the pace of change is accelerating as the industry embraces more analytical tools, emerging best practices, and peer benchmarking.

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May 29th, 2014

Guy Carpenter Strategic Advisory Appoints Two Prominent Rating Agency Executives

Posted at 5:00 AM ET

Guy Carpenter today announced the appointments of Eric Simpson as Managing Director and Mark Murray as Senior Vice President. Mr. Murray reports to Mr. Simpson, who reports directly to Jack Snyder, Managing Director, Head of the Rating Agency Practice, Guy Carpenter Strategic Advisory. Both are based in the Philadelphia office. Mr. Simpson joined Guy Carpenter on April 28 and Mr. Murray on April 21.

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