Posts Tagged ‘capital’



September 15th, 2016

Solvency II Equivalence In The International (Re)insurance Landscape

Posted at 1:00 AM ET

andrew-cox-951graham-jones-95lobel_myra-smeddy-vanbeneden-sm22sumner-smAndrew Cox, Managing Director; Graham Jones, Senior Vice President; Myra E. Lobel, Managing Director; Eddy Vanbeneden, Managing Director and Steven Sumner, Oliver Wyman, Actuarial Consulting

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The concept of equivalence under Solvency II determines to what extent (re)insurance entities outside Europe can operate within the European Union (EU) while relying solely on their local solvency standards. The ability to operate in the EU is a significant issue that impacts multinational (re)insurance companies and groups.

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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

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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.

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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

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

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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

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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.

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September 11th, 2016

A Tale of Two ILS Quarters

Posted at 1:00 AM ET

cory-anger-small2Cory Anger, Global Head of ILS Origination and Structuring, GC Securities*

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A tale of two insurance-linked securities (ILS) quarters is the theme of the first half of 2016 and highlights the divergence of the ILS market this year.

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September 9th, 2016

Reinsurers Standing Firm As Insurers Look To Consolidate – GC@MC Commentary

Posted at 3:00 AM ET

frankland-nick-smchris-klein-sm1Nick Frankland, CEO, EMEA Operations and Chris Klein, Head of EMEA Strategy Management

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Recent Renewals Show Evidence of Changing State of Reinsurance Market

As large-scale multi-line insurers enter a period of consolidation following the significant drive to rationalize long-term strategic reinsurance purchasing, recent renewal activity suggests reinsurers are now increasingly resisting shorter-term aggressive buying strategies, according to Nick Frankland, CEO of EMEA Operations and Chris Klein, Head of EMEA Strategy Management at Guy Carpenter.

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September 9th, 2016

Expanding Range Of Capital Sources Offers Benefits – GC@MC Commentary

Posted at 1:00 AM ET

priebe_david-sm1cory-anger-small1David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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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.

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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.

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August 25th, 2016

Private Market Solutions for Public Risk Exposure

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on how the private sector is exploring the development of innovative solutions for public sector risk exposures.

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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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