Posts Tagged ‘Catastrophe’
Fiscal constraints are increasing across many developed and emerging economies amid growing catastrophic loss potential brought on by the geopolitical climate, demographic trends and global climate change. As a result, heads of government, international trade organizations and private sector risk bearers are increasing their calls to reexamine the roles and responsibilities of society to better manage these complicated risks.
In southeast Texas, a significant flood event has affected the Greater Houston Metro area as well as areas north and west. Heavy and persistent rainfall has produced catastrophic flooding, enabled by a slow-moving upper low and frontal boundary, together with available moisture. Record daily rainfall amounts were observed at Houston International Airport, with amounts of 15 to 18 inches reported north and west of the Houston area. National Weather Service flood and flash flood watches and warnings remain active for areas of the Southern Plains and Lower Mississippi Valley and some additional rainfall is expected with thunderstorms. Media reports indicate at least seven fatalities and first responders expect this number to rise. Reports indicate that over 1,000 homes have been inundated. Texas Governor Greg Abbott has declared a state of disaster in nine counties, enabling state resources to be used to respond to the emergency, according to media reports. It will take some time to fully assess the scope and severity of impacts of this event and our thoughts are with those lost and directly affected by this event.
A Mw 7.8 earthquake struck the Esmeralda Province near the west coast of northern Ecuador on April 16, according to the U.S. Geological Survey (USGS). The quake occurred at 6:58 PM local time (23:58 UTC) about 17 miles (27 km) south-southeast of Muisne and about 106 miles (170 km) west-northwest of Quito, the capital of Ecuador.
The recent 2015 reinsurance renewals in this area demonstrated further expansion in the manner and means by which these insurance providers utilize private-sector capital to support their businesses. Traditional reinsurance remains a core component of most residual market risk financing programs. Typically these risk financing plans will also rely on retained profit, assessments and debt facilities in concert with the various forms of reinsurance to manage their exposures. The utilization of alternative risk financing capital through catastrophe bonds and/or collateralized reinsurance continues to grow with eight of 12 facilities that utilize traditional reinsurance also accessing risk transfer capacity through catastrophe bonds and/or collateralized reinsurance to help manage their loss exposures. The chart below details the increasingly diverse set of risk financing approaches employed by 11 coastal markets.
The US residual property insurance market segment is comprised of Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans and two state run insurance companies - Florida Citizens Property Insurance Company (Florida Citizens) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). These insurance facilities grew out of the civil strife in the 1960s to ensure continued access to insurance in urban areas. Over time they have evolved and their mandate has grown beyond their urban focus. Today these facilities are significant providers of some of the most wind- and earthquake-exposed property insurance in the country.
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the first quarter of 2016:
1. Global Property Catastrophe ROL Index 1990 to 2016: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2016.
2. Regional Property Catastrophe ROL Index, 1990 to 2016: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.
3. Top Ten Catastrophe Bond Transactions for 2015: The table lists the top ten catastrophe bond transactions that were completed in 2015.
4. Catastrophe Bond Issuance and Capital Outstanding - 1998 to YE 2015: The chart below presents catastrophe bond issuance through 2015. Total bond issuance for the year 2015 was the fourth highest historically.
5. Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit: 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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The National Flood Insurance Program (NFIP) is the primary underwriter of flood insurance policies in the United States. The program was established in 1968 through the passage of the National Flood Insurance Act.
Guy Carpenter Launches GC AdvantagePoint® 2.0, The Latest Version Of Its Advanced Risk Management Platform
Guy Carpenter today announced the launch of GC AdvantagePoint® 2.0, the latest release of its cutting edge client portfolio and risk management platform.