Posts Tagged ‘convergence’



January 14th, 2019

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital

Posted at 4:01 AM ET

The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter. Continue reading…

December 5th, 2018

Ensuring innovation is more than a cliché

Posted at 1:00 AM ET

bentley_rob_150x150The numerous challenges the insurance industry faces mean that innovation is critical to tackling them. Rob Bentley, Chief Executive Officer of Guy Carpenter’s Global Strategic Advisory, describes how Guy Carpenter is helping its clients manage these challenges—especially the conundrum of InsurTech, in an interview that appeared in Intelligent Insurer magazine.

Rate pressure, lower investment income, emerging risks, evolving technologies, new capital sources and regulatory changes are creating an environment in which earnings and growth are impacted. How do companies find opportunity in such conditions?

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October 25th, 2018

Maintaining Momentum - GC@BB Commentary

Posted at 1:00 AM ET

potter_des_photograph1 Des Potter, Managing Director, GC Securities*

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  • Innovation key to London’s ILS success
  • Robust pipeline of new applications
  • Industry must work proactively with Prudential Regulatory Authority Continue reading…
September 10th, 2018

Maintaining Momentum - GC@MC Commentary

Posted at 1:00 AM ET

potter_des_photograph1 Des Potter, Managing Director, GC Securities*

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  • Innovation key to London’s ILS success
  • Robust pipeline of new applications
  • Industry must work proactively with Prudential Regulatory Authority Continue reading…
June 4th, 2018

Guy Carpenter Extends Capital Markets Expertise with Hire of President and Global Leader, GC Securities, Capital Markets

Posted at 10:14 AM ET

Guy Carpenter, a leading global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies, today hired Shiv Kumar as President and Global Leader of GC Securities,* Capital Markets. Mr. Kumar was previously Global Head of Insurance Structured Finance at Goldman, Sachs & Co. His 23 years of experience in the (re)insurance sector and capital markets will enhance GC Securities’ ability to identify and execute convergence capital solutions that help clients manage risk.

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March 28th, 2018

What the Numbers Reveal about the Current Industry Status. Chapter 2: Insurer Profitability and Retrocession, Part I

Posted at 1:00 AM ET

Chapter 2: How have 2017 losses and the last several years of declining rates impacted reinsurer profitability?  Has increasing prevalence of retrocessional reinsurance, now provided primarily by convergence capital providers, had an impact? Part I.

The Guy Carpenter Global Reinsurance Composite Third Quarter results provided hard data and context for recent industry performance.

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March 27th, 2018

Reinsurance Market Assessment: What the Numbers Reveal about the Current Industry Status. Chapter 1

Posted at 1:00 AM ET

After several years of light catastrophe activity, particularly in the United States where capital deployment covering catastrophe exposures was heavily impacted by convergence capital, the events of 2017 provided a framework to evaluate how evolving market dynamics over the last few years held up to the real test of losses.

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June 9th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

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June 8th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part I

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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Industry Must Adapt to Emerging Segmentation Phase

Pricing declines continued in the insurance-linked securities (ILS) segment of alternative capital. In turn, this has prompted questions about the sustainability of lower pricing and capacity post-catastrophe event, suggesting that traditional reinsurers’ models and the traditional reinsurance and alternative capital mix of capital sources still need to evolve. Maintaining premium rate adequacy and stable capacity requires better access to the expanding sources of capital and awareness of the benefits of better risk syndication and segmentation, according to David Priebe, Vice Chairman at Guy Carpenter and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities.

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