Posts Tagged ‘Catastrophe’



February 11th, 2016

Meeting the Challenges: Catastrophe Modeling

Posted at 1:00 AM ET

In realizing the goal of profitable growth, (re)insurers require a trusted partner to help them manage a rapidly evolving regulatory and rating agency environment.

Catastrophe Modeling

The insurance industry relies to a large extent on catastrophe models to manage catastrophe risk. Regulators and rating agencies recognize this fact by asking companies to justify their modeling approach. The underlying objective of such rules is to encourage companies to have a robust and consistent process to use modeling tools responsibly.

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February 8th, 2016

Rating Agency Developments, Part II; Europe and Asia Pacific

Posted at 1:00 AM ET

Europe

In anticipation of the January 2016 rollout, the European insurance industry focused squarely on Solvency II. Rating agencies refrained from instituting any new criteria.

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January 26th, 2016

Winter Storm – January 21—23, 2016

Posted at 4:08 PM ET

winter-storm-jan-21-23-16-smallFrom January 21-23, a significant winter storm affected areas of the United States from the Southeast to the Mid-Atlantic to New England. The winter storm, unofficially named “Jonas” by the Weather Channel, produced significant snowfall totals from Washington D.C. to the New York Metro area, breaking many daily snowfall records. Strong winds together with blowing snow often reduced visibility below a quarter mile. Strong onshore winds brought hurricane-force wind gusts to some areas and drove a storm surge impacting areas of Delaware and New Jersey.

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January 6th, 2016

Chart: Regional Property Catastrophe ROL Index, 1990 to 2016

Posted at 3:26 PM ET

The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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January 6th, 2016

Chart: Global Property Catastrophe ROL Index 1990 to 2016

Posted at 3:26 PM ET

The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 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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December 29th, 2015

Winter Storm – December 26 – 29, 2015

Posted at 3:10 PM ET

ws-12-26-29-a-smA complex frontal system has rendered significant impacts to the Southern, Southwestern, and Midwestern States, with an ongoing threat from the Midwest to the Saint Lawrence Valley to the Northeast. The system brought severe thunderstorms to the Northern Gulf states, with a confirmed EF-4 tornado affecting the Dallas area, causing several fatalities and extensive structural damage. Excessive rainfall has produced significant and historic flooding in the Central Mississippi Valley. Significant winter weather including heavy snow and ice continues to threaten areas from the Midwest to the Northeast, after nearly 40 inches of snowfall in New Mexico and over half an inch of ice reported from Texas to Illinois. Significant power outages have been reported for some areas. Transportation disruption has been especially severe for both land and air.

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December 10th, 2015

The Rise of Emerging Risk and Casualty Catastrophe Models

Posted at 1:00 AM ET

The modeling of emerging and casualty catastrophe risks remains challenging and the models continue to vary in their approach, level of development and industry acceptance. With the potential scenarios numerous, diverse and constantly changing, there is no single model or approach that could contemplate all of them. Furthermore, the various disaster scenarios with which carriers are being increasingly confronted needs to be prioritized and synthesized within their enterprise risk management framework. By their very definition, there may be limited data on hand on which to base any modeling. As a result, much of the industry continues to rely on multiple models and actuarial approaches that encompass model applications, probable maximum loss (PML) estimates, realistic disaster scenarios, experience and exposure ratings to create a broad set of scenarios and deterministic views.

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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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