Posts Tagged ‘cap mgmt’



September 12th, 2016

(Re)Insurers Modifying Their Behavior Ahead Of A.M. Best’s New Ratings And BCAR Criteria - GC@MC Commentary

Posted at 3:00 AM ET

eric-simpson-smallmurray_mark-smEric Simpson, Managing Director and Mark Murray, Senior Vice President

Contact

Industry Accelerates Risk Profile Analytics and Development of Their Own Risk Tolerances and Stochastic Capital Modeling

The launch of A.M. Best’s (Best) new ratings and Stochastic-based Best’s Capital Adequacy Ratio (BCAR) draft criteria became an inflection point for (re)insurers worldwide. The 2016 changes represent Best’s first major overhaul in over 20 years and are leading to a growing number of changes in market behaviors across the company size spectrum. (Re)insurers are assessing their risk and capital management positions in anticipation of the impacts of Best’s new requirements even though the changes will not result in massive differences in its published ratings nor likely become effective until later in 2017, according to Eric Simpson, Managing Director and Mark Murray, Senior Vice President of Guy Carpenter.

Continue reading…

September 12th, 2016

Solvency II: Greater Risk-Driven Management

Posted at 1:00 AM ET

andrew-cox-95eagle_matthew-smeddy-vanbeneden-sm21 Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director

Contact

On January 1, 2016, the Solvency II regulatory regime took effect. Some celebrated; others were weary from the months and years of preparation.

Continue reading…

September 12th, 2016

Managing Volatility Key To Solvency II Transition - GC@MC Commentary

Posted at 12:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

Contact

Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

Continue reading…

August 30th, 2016

Reserving and Capital Setting: Background and Challenges

Posted at 1:00 AM ET

Loss reserves are arguably one of the most difficult risks to estimate and monitor. In fact, inadequate pricing and deficient loss reserves have been the leading cause of property/casualty company impairments. According to A.M. Best, from 1969 to 2009 they triggered approximately 40 percent of all impairments - four times more than those emanating from natural catastrophes (1). There are many uncertainties in managing long-tailed, heavily legislated lines of business that can be triggered from emerging risks. Unforeseen inflation and anticipated legislative changes over a 10 to 30 year period present many demands. In order to prepare for emerging risk scenarios, future trends and related uncertainties need to be explicitly identified, contemplated and estimated.

Continue reading…

August 11th, 2016

Emerging Risk Exposure and Aggregation

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on the challenge for (re)insurers to identify their exposure to emerging risks and deal with the potential risk aggregation.

Continue reading…

August 10th, 2016

Changing View on Applying (Re)insurance to Risk Decisions

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on how the view of applying (re)insurance to risk decision making is evolving.

Continue reading…

August 3rd, 2016

Utilizing Data and Models to Understand Emerging Risks

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on how the accumulation of data and utilization of models will help (re)insurers understand the implications of emerging risks.

Continue reading…

July 25th, 2016

Benchmarks for Enterprise Risk Management Disclosures

Posted at 1:00 AM ET

Here we present GC Capital Ideas’ stories on analyses of enterprise risk management disclosures. A 2014 study updated the analysis done in 2009, one of our most popular stories. The full briefings are attached.

Continue reading…

July 21st, 2016

Value in Enterprise Risk Management Practices

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on the benefits of enterprise risk management practices in supporting (re)insurance capital and regulatory decision making.

Continue reading…

July 7th, 2016

Changes to Best’s Capital Adequacy Ratio (BCAR)

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on developing changes to Best’s Capital Adequacy Ratio (BCAR) and the potential impact of those changes on (re)insurers.

Continue reading…