Posts Tagged ‘Catastrophe’



January 28th, 2015

Winter Storm – January 26 – 28, 2015 - Update

Posted at 5:15 PM ET

winterstorm-1-28-2015-smllThe intense coastal storm is now clearing Atlantic Canada and steadily weakening. Blizzard and winter storm warnings have been discontinued, although winter weather advisories remain for select areas of New England. This storm lived up to expectations as an intense, impactful, and historic coastal storm, despite challenges on the forecast track and the especially sharp edge of the snow shield. Blizzard conditions with snowfall amounts of two to three feet affected a widespread area of New England and wind gusts exceeded hurricane force in some areas. The strong winds also produced a storm surge with greatest severity to coastal Massachusetts.

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January 27th, 2015

Winter Storm – January 26-27, 2015

Posted at 4:10 PM ET

winterstorm-1-26-27-2015-smallA deep coastal storm formed off the Outer Banks on January 26, 2015 and moved northward to impact many areas of the U.S. Northeast and Atlantic Canada. Blizzard warnings remain active from Rhode Island to Atlantic Canada, according to The National Weather Service (NWS) and Meteorological Service of Canada (MSC). Snowfall rates as high as two to three inches per hour, together with strong winds continue to restrict visibility and impose dangerous travel conditions. Conditions should improve for Boston this afternoon into the evening, and gradually clear from south to north over the next 24 hours or so.

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January 13th, 2015

Comparison of Federal Terrorism Insurance Backstop Legislation

Posted at 3:13 PM ET

This two part table compares the expired Terrorism Risk Insurance Program Reauthorization Act of 2007 with the 2015 TRIPRA legislation that was signed into law on Monday, January 12, 2015.

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January 8th, 2015

Chart: Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit

Posted at 3:20 PM ET

The chart below presents alternative capital capacity as a percentage of global property catastrophe reinsurance limit from 2008 to year-end 2014.

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January 8th, 2015

Chart: European Property Catastrophe ROL Trends — 2007 to 2015

Posted at 2:41 PM ET

The chart presents the European Property Catastrophe Rate On Line (ROL) trends with correlating impact of catastrophe events for the period 2007 to January 1, 2015.

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December 15th, 2014

Reserving Risks

Posted at 1:00 AM ET

The previous sections suggested how “dark matter” can be lurking on an insurer’s balance sheets in the form of a casualty catastrophe or an emerging and not as yet fully understood risk such as cyber. While there have been significant advances in quantifying the uncertainty pertaining to these risks, it is worth considering how they may manifest themselves in the future and what can be done about them now to protect from the “dark matter” downside.

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December 4th, 2014

Casualty Catastrophe Risk Modeling: Part II

Posted at 1:00 AM ET

Casualty catastrophe occurrences have become increasingly common over the past decade. The recent 2008 financial catastrophe is the easiest to cite, due to its sheer size and the fact that it continues to unfold even today. But, there have been many others. The collapse of the “dotcom economy” led to scandals around initial public offering laddering and equity analyst conflicts of interest. Accounting firms were not alone in suffering financial loss related to such debacles as Enron, WorldCom, Tyco and Adelphia. While insured losses did not reach those of property catastrophes, economic damages were profound. Enron’s loss of USD66 billion in market capitalization alone - not including the economic damage caused to other companies - was more than double that of Hurricane Ike (approximately USD30 billion). The financial catastrophe is estimated to have caused economic damage of above USD1 trillion, with more likely to follow. When considered in the context of the Deepwater Horizon industrial accident, the casualty catastrophe that unraveled from the largest US offshore energy event over the past 40 years was by no means remote. Beyond the initial property loss of the actual drilling rig, liability risk in paying claims continues to extend and ripple throughout the supply chain involved as well as the environmental impact to numerous coastal and commercial businesses. Asbestos litigation, perhaps the longest casualty catastrophe on record, has paid out over USD70 billion and by some accounts may be entering its third wave. Therefore, asbestos is an emerging crystalizing risk that needs to be continuously monitored, measured and modeled for those who continue to be exposed to it.

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December 3rd, 2014

Casualty Catastrophe Risk Modeling: Part I

Posted at 1:00 AM ET

Casualty (or liability based) catastrophes have become increasingly frequent and severe over the past decade, exposing (re)insurers to much more risk than they may have realized and reserved for. One root cause can trigger a chain reaction that can bleed balance sheets and even imperil solvency. Until recently, casualty carriers had little choice but to accept this risk as losses emerged.

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November 25th, 2014

Emerging Risk: Commercial Terrorism Models

Posted at 1:00 AM ET

The catastrophe modeling companies have regularly updated their terrorism models over the years to reflect the changing threat landscape and help (re)insurers and other market participants perform robust terrorism risk assessments. Such updated products from RMS and AIR include:

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November 12th, 2014

Cyber-attacks and Terrorism Revealed as Top Emerging Risks for 2015, According to Annual Guy Carpenter Survey

Posted at 5:30 AM ET

Cyber-attacks and terrorism are ranked among the top emerging risks concerning the (re)insurance industry in the year ahead, according to a survey released today by Guy Carpenter. According to the findings, new products, expansion into new geographic markets and access to new distribution channels will be the primary drivers of profitable growth in 2015. 

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