Posts Tagged ‘Chris McKeown’



September 13th, 2011

Guy Carpenter Announces New Executive Appointments

Posted at 9:00 AM ET

Guy Carpenter & Company announced several changes to its global management structure.

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February 21st, 2011

Top Enterprise Risk Management Stories of the Last Year

Posted at 1:00 AM ET

Here are our most popular stories on enterprise risk management that have appeared on GC Capital Ideas in 2010.

Turn Insurance Portfolio Modeling and Management into a Strategic Advantage: Companies that optimize the use of economic capital models to holistically manage portfolios may gain a powerful advantage in the marketplace. Improved risk decision-making and capital allocation can translate to profitable growth and an increase in shareholder value. But, it takes a commitment: ongoing integration and evaluation of the models in the operation may create ongoing benefits to results.

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Creating Value by Integrating Risk Management with Capital Management and Overall Business Strategy: Enterprise Risk Management (ERM) enables an organization to integrate its risk management strategy with its capital and business strategies, ultimately improving the linkage between operational and financial decision making. ERM consists of four elements: identifying and managing critical risks; quantifying the impact of these risks on capital adequacy and earnings, setting risk appetite and tolerance, and embedding risk management into the strategic decision-making process. Several studies have shown that firms with stable results consistently create more value for stakeholders than those with volatile results.

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The Time Profile of Risk: From the Desk of Guy Carpenter’s Chief Actuary:  According to the draft European Union Solvency IIc directives, companies will need to provide an “own risk and solvency assessment” (ORSA). The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has prepared an issues paper that provides guidance to assist (re)insurers in implementing the ORSA.

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GC Videocast - Enterprise Risk and Risk Capital: A Perspective on the Future (Joan Lamm-Tennant)   Guy Carpenter’s Global Chief Economist Joan Lamm-Tennant reviews emerging themes, post financial crisis, around enterprise risk and risk capital.

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Corporate Decision Making Using Economic Capital Models: Part I: Introduction, Quantifying Corporate Risk:  In the 1980s many large general insurance companies investigated the use of dynamic financial analysis for corporate decision making. Only a small number of insurers and reinsurers, many of which were European, were able to develop dynamic financial models that were adequate for use in decision making. The primary obstacles to implementation were actuarial knowledge and computer technology. By the early 2000s, technology had improved, actuaries had developed techniques that allowed better quantification of insurance risks and dynamic financial analysis had evolved into enterprise risk management (ERM) supported by economic capital models. With these improvements, regulators began to develop solvency rules that create incentives for insurers to implement economic capital models. Although the current impetus for economic capital models is regulatory, the original purpose of enhanced strategic decision making is still valid and companies that use their economic capital models for ERM will be industry leaders.

Read the article »

Corporate Decision Making Using Economic Capital Models: Part II: Identifying Capital Needs:  Capital needs can be defined from a number of different perspectives:

  • Regulatory: which focuses on the probability of insolvency;
  • Rating agency: which focuses on both the probability of insolvency and the ability to continue with the current rating; and
  • Going concern: which focuses on the ability to continue to implement current plans.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part I:  Overview:   The threats to which (re)insurers’ capital is exposed seem to multiply with alarming regularity. Today, the industry is contending with risks that were barely imaginable (at best) 20 years ago. In an age when carriers must respond to casualty catastrophes, the possible effects of climate change and financial market calamity - perhaps all on the same earnings call - it’s natural to wonder if the right tools and techniques for the job are available. Risk and capital management have only grown in complexity, a trajectory that is quite likely to continue - and probably accelerate.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge: Part II:  The Challenge of Innovation: Innovation can be a source of competitive advantage. A (re)insurer - or service provider (e.g., a reinsurance intermediary) - devises a solution to a particular challenge that the industry faces. It results in improved risk or capital management, for example, leading to enhanced margins, the optimization of capital deployment or expense management. Since the innovator - or early adopter of a service provider’s new idea - has access first, it realizes the benefit ahead of competitors that wait for the trend to crystallize.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part III: Get in the Game Early:  Those who invest in and prioritize research and development - and introduce new tools and ideas - benefit from more than just the prestige of being first. Early movers define the standard to which others will have to adapt later. They shape the development of innovation, and thus its evolution, as it moves from a radically new idea to an accepted marketplace practice. In possessing this control, they hold the upper hand over their competitors, which become weighted with the burdens of the catch-up clamor.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part IV: Staying Out Front Innovation must be continual, because of the lifecycle that governs it. If you’re not innovating (or adopting) now, you’re falling behind. The advantages of one innovative solution are quickly outpaced when another is developed or that same solution is adapted to new situations; and if the originator is not doing the work to make those leaps, the reputation of innovation can be quickly lost.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part V: The Elements of Innovation:  Innovation requires a dedication to research, creativity, resources and foresight. Above all, however, it takes courage to accept the risks - to strive for success rather than cowering in fear of failure. In fact, the best companies learn from occasional mistakes. Learning from failure during the development stages of innovation strengthens a company’s capabilities. It creates an understanding of the issue at hand farther reaching and more in depth than that of the competitors which attach to the idea after it has been accepted as a standard. This understanding fosters a more effective use of that innovation as well as a platform from which to generate new ideas with the practical experience of what works and what does not.

Read the article »

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December 27th, 2010

Top Casualty Cat Stories: 2010

Posted at 1:00 AM ET

Here are the top ranked GCCapitalIdeas stories covering Casualty Catastrophe that appeared in 2010.

Casualty Catastrophe Implications of the Deepwater Horizon Oil Release Disaster: There has been no shortage of media coverage and discussion of the Deepwater Horizon oil spill and attendant insurance implications. The media has reported up to 300 lawsuits filed against BP and other defendants involved in the Deepwater Horizon oil release disaster.

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Guy Carpenter’s CasCat® Named “Insurance Initiative of the Year”: Guy Carpenter & Company, LLC announced that its CasCat® model has been named “Insurance Initiative of the Year” at the Insurance Day 2010 London Market Awards. The annual awards, presented December 2 at London’s Grosvenor House Hotel, are selected by a distinguished panel of independent judges and recognize outstanding work in the London (re)insurance market.

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Modeling Capabilities in Europe: Insurance-related catastrophe modeling has undergone a constant evolutionary drive for the past 25 years. The impetus behind the development of cat models began with the realization that large-scale events needed tracking to provide better means of managing insurance exposures to natural disasters.

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Modeling the Impact of a Casualty Catastrophe: Look no further than today’s headlines to see how a single catastrophic event or lawsuit can have far-reaching effects. Over the past few years, several incidents, seemingly isolated, have ballooned into cross-border, cross-industry and cross-business line catastrophes. Chain reactions of liability - such as the Deepwater Horizon oil spill, the collapse of Lehman Brothers and the Chinese Drywall product recall - have led insurers to ask: How do I assess the impact of a major legal liability catastrophe on my portfolio? And it’s not just the industry waiting for an answer: stockholders, analysts, rating agencies and regulators are listening, too.

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Guy Carpenter Earns Top Honors at Worldwide Reinsurance Awards: Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and part of the Marsh & McLennan Companies, was honored with two major accolades at The Review magazine’s prestigious Worldwide Reinsurance Awards 2010. For the fourth consecutive year, Guy Carpenter won the award for “Reinsurance Broking Team of the Year” as well as the coveted “Re/Insurance Initiative of the Year” award for developing CasCat®, the insurance industry’s first casualty catastrophe model.

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(Re)Insurance Innovation: Committing to the Leading Edge, Part III: Get in the Game Early: Those who invest in and prioritize research and development - and introduce new tools and ideas - benefit from more than just the prestige of being first. Early movers define the standard to which others will have to adapt later. They shape the development of innovation, and thus its evolution, as it moves from a radically new idea to an accepted marketplace practice. In possessing this control, they hold the upper hand over their competitors, which become weighted with the burdens of the catch-up clamor.

Read the article >>

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October 25th, 2010

U.S. Property Cat Rates and Opportunities for Making Excess Capital Productive

Posted at 5:00 AM ET

mckeown_christopher_bioChris McKeown, President & CEO of North America Broking Operations
Contact

It feels like 2007 all over again. Following contained increases in the United States in 2009, property-catastrophe reinsurance rates fell again in 2010, continuing a trend that has been the norm since Hurricanes Katrina, Rita and Wilma struck in 2005. Low levels of catastrophe losses, abundant capital at attainable prices (generally) and advances in risk and capital management practices are some of the main reasons why rates have generally fallen. Even when they did increase in 2009, influenced by the 2008 financial crisis and Hurricane Ike, they did not skyrocket.

Continue reading…

May 18th, 2010

Top ERM Stories: 2010 Year to Date

Posted at 11:53 AM ET

Here are our most popular stories on enterprise risk management that have appeared on GC Capital Ideas in 2010.

Corporate Decision Making Using Economic Capital Models: Part I: Introduction, Quantifying Corporate Risk:  In the 1980s many large general insurance companies investigated the use of dynamic financial analysis for corporate decision making. Only a small number of insurers and reinsurers, many of which were European, were able to develop dynamic financial models that were adequate for use in decision making. The primary obstacles to implementation were actuarial knowledge and computer technology. By the early 2000s, technology had improved, actuaries had developed techniques that allowed better quantification of insurance risks and dynamic financial analysis had evolved into enterprise risk management (ERM) supported by economic capital models. With these improvements, regulators began to develop solvency rules that create incentives for insurers to implement economic capital models. Although the current impetus for economic capital models is regulatory, the original purpose of enhanced strategic decision making is still valid and companies that use their economic capital models for ERM will be industry leaders.

Read the article »

Corporate Decision Making Using Economic Capital Models: Part II: Identifying Capital Needs:  Capital needs can be defined from a number of different perspectives:

  • Regulatory: which focuses on the probability of insolvency;
  • Rating agency: which focuses on both the probability of insolvency and the ability to continue with the current rating; and
  • Going concern: which focuses on the ability to continue to implement current plans.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part I:  Overview:   The threats to which (re)insurers’ capital is exposed seem to multiply with alarming regularity. Today, the industry is contending with risks that were barely imaginable (at best) 20 years ago. In an age when carriers must respond to casualty catastrophes, the possible effects of climate change and financial market calamity - perhaps all on the same earnings call - it’s natural to wonder if the right tools and techniques for the job are available. Risk and capital management have only grown in complexity, a trajectory that is quite likely to continue - and probably accelerate.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge: Part II:  The Challenge of Innovation: Innovation can be a source of competitive advantage. A (re)insurer - or service provider (e.g., a reinsurance intermediary) - devises a solution to a particular challenge that the industry faces. It results in improved risk or capital management, for example, leading to enhanced margins, the optimization of capital deployment or expense management. Since the innovator - or early adopter of a service provider’s new idea - has access first, it realizes the benefit ahead of competitors that wait for the trend to crystallize.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part III: Get in the Game Early:  Those who invest in and prioritize research and development - and introduce new tools and ideas - benefit from more than just the prestige of being first. Early movers define the standard to which others will have to adapt later. They shape the development of innovation, and thus its evolution, as it moves from a radically new idea to an accepted marketplace practice. In possessing this control, they hold the upper hand over their competitors, which become weighted with the burdens of the catch-up clamor.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part IV: Staying Out Front Innovation must be continual, because of the lifecycle that governs it. If you’re not innovating (or adopting) now, you’re falling behind. The advantages of one innovative solution are quickly outpaced when another is developed or that same solution is adapted to new situations; and if the originator is not doing the work to make those leaps, the reputation of innovation can be quickly lost.

Read the article »

(Re)Insurance Innovation: Committing to the Leading Edge, Part V: The Elements of Innovation:  Innovation requires a dedication to research, creativity, resources and foresight. Above all, however, it takes courage to accept the risks - to strive for success rather than cowering in fear of failure. In fact, the best companies learn from occasional mistakes. Learning from failure during the development stages of innovation strengthens a company’s capabilities. It creates an understanding of the issue at hand farther reaching and more in depth than that of the competitors which attach to the idea after it has been accepted as a standard. This understanding fosters a more effective use of that innovation as well as a platform from which to generate new ideas with the practical experience of what works and what does not.

Read the article »

Click here to register for e-mail updates >>

January 21st, 2010

(Re)Insurance Innovation: Committing to the Leading Edge: Link Index

Posted at 3:01 PM ET

(Re)Insurance Innovation: Committing to the Leading Edge, Part I: Overview >>

(Re)Insurance Innovation: Committing to the Leading Edge, Part II: The Challenge of Innovation >>

(Re)Insurance Innovation: Committing to the Leading Edge, Part III: Get in the Game Early >>

(Re)Insurance Innovation: Committing to the Leading Edge, Part IV: Staying Out Front >>

(Re)Insurance Innovation: Committing to the Leading Edge, Part V: The Elements of Innovation >>

Click here to learn more about reinsurance innovation >>

January 18th, 2010

(Re)Insurance Innovation: Committing to the Leading Edge, Part V: The Elements of Innovation

Posted at 11:00 AM ET

mckeown_christopher_bioChris McKeown, CEO of Global Analytical and Specialty Practices
Contact

Innovation requires a dedication to research, creativity, resources and foresight. Above all, however, it takes courage to accept the risks — to strive for success rather than cowering in fear of failure. In fact, the best companies learn from occasional mistakes. Learning from failure during the development stages of innovation strengthens a company’s capabilities. It creates an understanding of the issue at hand farther reaching and more in depth than that of the competitors which attach to the idea after it has been accepted as a standard. This understanding fosters a more effective use of that innovation as well as a platform from which to generate new ideas with the practical experience of what works and what does not.

Continue reading…

January 14th, 2010

(Re)Insurance Innovation: Committing to the Leading Edge, Part IV: Staying Out Front

Posted at 12:00 PM ET

mckeown_christopher_bioChris McKeown, CEO of Global Analytical and Specialty Practices
Contact

Innovation must be continual, because of the lifecycle that governs it. If you’re not innovating (or adopting) now, you’re falling behind. The advantages of one innovative solution are quickly outpaced when another is developed or that same solution is adapted to new situations; and if the originator is not doing the work to make those leaps, the reputation of innovation can be quickly lost.

Continue reading…

January 13th, 2010

(Re)Insurance Innovation: Committing to the Leading Edge, Part III: Get in the Game Early

Posted at 12:00 PM ET

mckeown_christopher_bioChris McKeown, CEO of Global Analytical and Specialty Practices
Contact

Those who invest in and prioritize research and development — and introduce new tools and ideas — benefit from more than just the prestige of being first. Early movers define the standard to which others will have to adapt later. They shape the development of innovation, and thus its evolution, as it moves from a radically new idea to an accepted marketplace practice. In possessing this control, they hold the upper hand over their competitors, which become weighted with the burdens of the catch-up clamor.

Continue reading…