Posts Tagged ‘Casualty’



November 20th, 2014

Change in the Threat of Terrorism

Posted at 1:00 AM ET

In the Guy Carpenter Global Terrorism Report Uncertain Future: Evolving Terrorism Risk (1) we provide a comprehensive review and outlook of terrorism risk. Key components of the report are highlighted below.

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November 19th, 2014

Terror Developments: Overview of TRIPRA

Posted at 1:00 AM ET

Some may question why terrorism risk has a place in a document dedicated to emerging risk. Terrorism as a form of violence to promote cause or promote change is one of the original human conflicts. The wind blows and the earth shakes much the same way now as it has for hundreds, thousands of years. However, terrorism as a risk and a peril has evolved over the years and is a current concern in all parts of the world. Given the growing population, regional conflicts producing a broad list of potential instigators, the expansive reach of social media for extremists spreading their messages and recruiting and the diversity of possible attack modes to cause human and economic loss, terrorism does qualify as an emerging risk. With this contemporaneity in mind, we will discuss terrorism as an example of an emerging risk that is being aggravated by changes in geo-political events and in the continued notable challenges in modeling its ever changing underlying complexities.

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November 18th, 2014

Emerging Risk: Periodic Payment Orders

Posted at 1:00 AM ET

For a number of reasons the United Kingdom represents an extreme example of the impact of annuity compensation structures. For severe bodily injury cases it is now highly likely that the claimant will opt for an annuity structure (known as a periodic payment order, or PPO) rather than a lump-sum. These are often indexed accordingly to the Annual Survey of Hours and Earnings (ASHE) (1). As a consequence, the uncertainties that had previously been transferred to the claimant are now retained by the insurer (and to a certain extent, its reinsurers). Unlike an individual claimant, the insurer needs to articulate these risks in its capital modeling. These risks can be categorized as follows:

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November 17th, 2014

Compensation “Emerging Risks”

Posted at 1:00 AM ET

From an “emerging risks” perspective it can be seen that the inadequacies of the “lump sum” method of compensation have been highlighted by a number of systemic factors:

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November 13th, 2014

Emerging Compensation Structures

Posted at 1:00 AM ET

Compensation for provision of long-term care for bodily injury is becoming an increasingly challenging problem for society in general and insurers in particular.

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November 12th, 2014

Cyber Coverage: Directors & Officers (D&O) Liability

Posted at 1:00 AM ET

Cyber coverage is also having an effect on directors and officers (D&O) liability in the United States. Oversight and increased requirements for disclosure on cybersecurity are making D&O coverage more important than ever. With the rise of data breaches and other cyber-attacks, directors and officers are responsible for making sure that they are taking sufficient steps to protect their company’s digital assets. In the case of a data breach, directors can be hit with shareholder suits and shareholder derivative actions claiming that the directors breached their fiduciary duty to the company for failing to put adequate cyber security measures in place.

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November 11th, 2014

Cyber-Related Risk to Critical Infrastructure

Posted at 1:00 AM ET

The table shows the sectors identified as critical by both the US government in the recent Presidential Policy Directive 21, and by the European Commission, as stated in the proposal, Directive on European Critical Infrastructure.

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November 10th, 2014

Regional Variations in Cyber Cover

Posted at 1:00 AM ET

Here we examine the variations in the regulation of data protection and privacy between the United States and Europe.

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October 30th, 2014

Affordable Care Act: Health Insurers Addressing the Need to Develop New Strategies

Posted at 1:00 AM ET

barker-smallPhillip Barker, Senior Vice President

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It has been a little over four years since the enactment and subsequent implementation of the Patient Protection and Affordable Care Act, more widely known as the ACA. The impact on the insurance industry as a whole has been tremendous, but it has not been shared equally among the industry subsectors. While the property/casualty (P&C) industry was not exactly spared, receiving a comparatively “light touch,” the ACA has been a catalyst helping create a transformational bridge between the P&C and the health insurance industries.

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October 30th, 2014

Cyber Insurance Coverage: Limits

Posted at 1:00 AM ET

Average limits purchased by companies with revenues exceeding USD1 billion rose 10 percent in 2013 to USD28.2 million from USD25.7 million in 2012. For companies of this size, financial institutions purchased the highest average limits at USD53.2 million, which represented a 9 percent increase from 2012. These average limits do not reflect the limits purchased by companies that blend cyber with the limits they purchase for errors and omissions (E&O) or bond. Since December 2013, there has been a stronger desire to obtain much higher limits than those purchased earlier in 2013. That trend is expected to continue.

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