Posts Tagged ‘CBI’



June 21st, 2016

Potential Losses From the Kumamoto Earthquake: Part II

Posted at 1:00 AM ET

Toyota Motor Corporation expects to lose 80,000 units of production after shutting down nearly all of its assembly plants in Japan as a result of the Kumamoto Earthquake. The shutdowns occurred after disruption to two of its suppliers, Aisin Seiki, which produces automotive components and Renesas Electronics, a manufacturer of automotive microchips (1).  Aisin Seiki said production at two plants that make engine and auto parts, semiconductors and other components have been stopped since April 14. Renesas’s plant was also shut down (2).

Continue reading…

June 20th, 2016

Potential Losses From the Kumamoto Earthquake: Part I

Posted at 1:00 AM ET

The catastrophe modeling firm RMS estimated the economic loss for property risks to be between USD2.5 billion and USD3.5 billion (1). This estimate includes only residential, commercial, and industrial property and contents. Catastrophe modeling firm AIR estimated the insured loss to be between USD1.7 billion and USD2.9 billion for property risks (2). Both catastrophe modeling firms’ estimates exclude infrastructure, business interruption and contingent business interruption.

Continue reading…

June 16th, 2016

Earthquake Coverage in Japan, Part II: Residential, Commercial, Industrial and Earthquake Fire Expense Insurance

Posted at 1:00 AM ET

The other source of residential earthquake insurance is through a limited number of cooperative insurers. As opposed to residential earthquake insurance under the government’s program, cooperative earthquake insurance is entirely run and managed by each individual cooperative insurer that writes the class, with no governmental support. The original policy terms tend to be somewhat similar in basic design to those of the government’s program backed policies, but reinsurance arrangements are entirely at the discretion of the individual cooperatives. Almost all the cooperatives writing this class purchase non-proportional reinsurance from the international reinsurance market and, in certain cases, also access the capital markets for protection via catastrophe bond issuance.

Continue reading…

May 23rd, 2016

Cyber Risk

Posted at 1:00 AM ET

ross_christopher-smChristopher Ross, Managing Director

Contact

As businesses, both large and small, throughout all sectors of industry, become more and more reliant on technology to improve service efficiencies and functionalities, cyber risk has become one of the most pressing public topics addressed in corporate boardrooms and by governments across the globe. The corresponding awareness of a business’s susceptibility to a cyber-attack has grown along with a spate of high-profile attacks. Consequently, cyber risk is now an embedded feature of the global risk landscape, not only as a privacy/network liability, which is where much of the publicity has arisen, but also as a peril affecting traditional insurance lines. Therefore, preventative and post-event remediation are gaining importance as shareholders, regulators and rating agencies are increasingly focused on enterprise risk management activities for cyber risks.

Continue reading…

May 11th, 2016

Guy Carpenter Reports on Kumamoto Earthquake, Seismic Risk and Earthquake Cover in Japan

Posted at 2:30 PM ET

Guy Carpenter & Company today released a briefing and analysis of the Kumamoto Earthquake that struck Japan in April 2016.

Continue reading…

October 28th, 2015

Cyber Risk

Posted at 1:00 AM ET

ross_christopher-smChristopher Ross, Managing Director

Contact

As businesses, both large and small, throughout all sectors of industry, become more and more reliant on technology to improve service efficiencies and functionalities, cyber risk has become one of the most pressing public topics addressed in corporate boardrooms and by governments across the globe. The corresponding awareness of a business’s susceptibility to a cyber-attack has grown along with a spate of high-profile attacks. Consequently, cyber risk is now an embedded feature of the global risk landscape, not only as a privacy/network liability, which is where much of the publicity has arisen, but also as a peril affecting traditional insurance lines. Therefore, preventative and post-event remediation are gaining importance as shareholders, regulators and rating agencies are increasingly focused on enterprise risk management activities for cyber risks.

Continue reading…

October 20th, 2015

Cyber-Attacks

Posted at 1:00 AM ET

The UK Government has recognized cyber-attacks to be one of the most significant risks facing the country. The costs to businesses are rising as hackers become more focused and persistent in their attacks. Several attempts have been made to quantify the economic cost of cyber crime on UK businesses. While there are a wide range of estimates, figures consistently range in the billions of pounds.

Continue reading…

October 22nd, 2014

Cyber Insurance

Posted at 1:00 AM ET

Cyber insurance has grown out of recognition that cyber-crime and data privacy are among the most concerning risks facing organizations today. With the increasing severity and frequency of cyber-attacks and data breaches worldwide, the demand for cyber-specific insurance is growing. Cyber-related risk to critical infrastructure and the overlap with cyber-terrorism are also issues that have come to the forefront.

Continue reading…

May 20th, 2014

Review of Space Risks and Insurance Solutions

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas stories on space risk and related insurance solutions. 

Recent Sun Flare Event Is a Reminder of Solar Weather Hazards: On February 24, 2014 the sun once again provided a reminder of the potential hazards of solar weather events. A large solar flare was reported by the National Aeronautics and Space Administration (NASA) measuring at X4.9 (or according to the National Weather Service’s Space Prediction Center, an R3 (strong) Solar Flare Radio Blackout) that could cause severe disruption to satellites and technology on Earth.

Read the article>> 

 

Space (Re)insurance Solutions: Weather Risk: Space weather risks are difficult to quantify due to the lack of understanding and clarity about the likely duration and consequences of extreme events. However, it is clear the interconnected global economy that exists today is vulnerable to the risks posed by space weather. Indeed, extreme solar weather events have the potential to create systemic risk by triggering cascading failures across industries and regions.

Read the article>> 

 

Space (Re)insurance Solutions: Debris Risk: Risks emanating from space pose a serious and real threat to the (re)insurance sector. Space debris and satellite collisions have the potential to cause losses in the millions or even billions of dollars, while extreme space weather has the potential to cause systemic failures across the globe. Although both risks are difficult to quantify given the uncertainty involved, (re)insurers have a responsibility to promote risk mitigating measures as the potential costs involved are considerable.

Read the article>> 

 

Solar Weather Activity: Solar weather is a space-related risk that has the potential to cause huge disruption to infrastructure and businesses around the world. Geomagnetic storm activity is not a new development but technological advancements and an increasingly interconnected global economy have resulted in increased vulnerability. Although extreme solar storms are relatively rare, there have been several notable recent events that have had a damaging impact on Earth. More are certain to occur in the future.

Read the article>> 

 

Space Debris Risk: Part I, Orbital Regions: The most serious threat to high-value satellites and space infrastructures in the Earth’s orbit today is the risk of collision with other satellites or space debris. As more satellites are sent into the Earth’s orbit to provide services and technology we now take for granted, including global communications and broadcasting, air traffic control, weather forecasting and disaster management, the area is becoming increasingly cluttered with satellites (operational and defunct) and other fragments, enhancing the risk of collision. Although deorbiting strategies are in place for some modern satellites, tens of thousands of objects still circulate the planet at extremely high speeds.

Read the article>> 

 

Space Debris Risk: Part II, Collision Risk: Space debris poses a serious risk to operational satellites, particularly in the low earth orbit (LEO) and geosynchronous orbit (GEO). Indeed, debris amounts are increasing as objects continue to collide with one another, producing more fragments. According to the U.S. Strategic Command’s Space Surveillance Network, more than 20,000 objects above ten centimeters in size are currently orbiting Earth. Of these, only some 1,000 are active satellites. For items measuring between one and ten centimeters, around 500,000 particles are thought to be orbiting Earth. Estimates suggest tens of millions of other particles smaller than one centimeter are circulating the planet. All this material is traveling at several kilometers per second, sufficient velocity to cause significant damage to operational satellites.

Click here to read>>

 

Click here to register to receive e-mail updates >>

March 27th, 2014

Recent Sun Flare Event Is a Reminder of Solar Weather Hazards

Posted at 1:00 AM ET

On Monday, February 24, 2014, the sun once again provided a reminder of the potential hazards of solar weather events. A large solar flare was reported by the National Aeronautics and Space Administration (NASA) measuring at X4.9 (1) (or according to the National Weather Service’s Space Prediction Center, an R3 (strong) Solar Flare Radio Blackout) (2) that could cause severe disruption to satellites and technology on Earth.

Continue reading…