Posts Tagged ‘capacity’



January 30th, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part II

Posted at 1:00 AM ET

emma-karhan-smEmma Karhan, Managing Director

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The dynamic of pricing decrease and oversupply of capital has also been driven by the industry’s need to diversify into non-natural catastrophe lines of business in the current economic environment, and the fact that the terror market has a loss ratio of almost zero percent. In 2015, Swiss Re’s Sigma report calculated that 27 terrorist events resulted in 1082 fatalities, but no insured losses. Unlike other lines of business, recent pricing and capacity trends have not been driven by a better technical understanding of the impact of losses that normally translates into improved peril understanding or advances in pricing or modeling techniques. This has generally inhibited the industry from expanding its product base for terrorism in line with the evolution of the peril, concentrating more on supporting the pools and the current established bounds of insurable loss.

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January 26th, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part I

Posted at 1:00 AM ET

emma-karhan-sm1Emma Karhan, Managing Director

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The (re)insurance industry should look towards closing the gap between economic and insured terror losses.

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January 5th, 2017

Guy Carpenter Reports Moderating Reinsurance Pricing Decline at January 1, 2017 Renewals

Posted at 7:00 AM ET

Guy Carpenter & Company reports the decline in reinsurance pricing moderated at the January 1, 2017 renewal across most classes of business and geographies, as compared to the past three renewal seasons.  Several sectors experienced increased loss activity, which had only a localized impact on pricing while capacity remained plentiful. After remaining fairly stable in 2015, dedicated reinsurance capital increased by 5 percent from January 1, 2016 to January 1, 2017 as calculated by Guy Carpenter and A.M. Best. The convergence capital segment increased by 10 percent.

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August 22nd, 2016

Chart: Evolution of Market Price, Capacity, Limit for Terror Pools

Posted at 1:00 AM ET

Chart shows the evolution of international reinsurance market price, capacity and limit for terror pools from 2009 to 2014.

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August 18th, 2016

GC Capital Ideas Top Chart Room Entries: First Half, 2016

Posted at 1:00 AM ET

From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the first half of 2016:

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July 11th, 2016

GC Capital Ideas Top Chart Room Entries: Second Quarter, 2016

Posted at 1:00 AM ET

From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the second quarter of 2016:

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January 6th, 2016

Chart: Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit

Posted at 3:25 PM ET

The chart below presents alternative capital capacity as a percentage of global property catastrophe reinsurance limit from 2008 to year-end 2015.

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January 5th, 2016

Guy Carpenter Reports Stable Capital at January 1, 2016 Renewals

Posted at 11:30 PM ET

2016-gc-renewal-report-sm4Guy Carpenter & Company reports that overall capital levels dedicated to reinsurance have stabilized, showing no growth for the first time in several years.  In a highly competitive environment, companies assessed broader opportunities and the rate of incoming capital slowed. However, moderate loss experience kept capacity at abundant levels for the January 1, 2016 renewals. The continued scarcity of costly catastrophe losses and more than adequate capacity led to reinsurance pricing reductions, although there are signs the rate of descent is slowing as compared to 2015.  

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November 5th, 2015

Cyber Risks: Aggregation, Part II

Posted at 1:00 AM ET

The aggregation of risk is ever more present because cyber insurance is a global class of business with losses emanating from any part of the world. The non-physical nature of cyber risk makes it possible for (re)insurers to suffer losses from a vast number of insureds spread across different geographies as a result of a single event. That creates aggregation risk, for which an insurer or reinsurer could find itself burdened with catastrophic losses.

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September 15th, 2015

Mergers and Acquisitions Developments

Posted at 10:30 PM ET

andrew-beecroft-smAndrew Beecroft, Managing Director, GC Securities*

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New capital inflows, excess capacity and benign catastrophe loss activity have contributed to falling (re)insurance prices and a challenging environment for specialty (re)insurers. These combined factors have been the rationale for predictions of a wave of market consolidation, which appear to have become a reality during 2015 as a series of rumors and announcements grabbed the headlines. 

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