Guy Carpenter today announced the release of MetaRisk® 7.1, the latest version of the firm’s premier risk and capital management decision making tool. The platform offers access to a variety of new features and enhancements that will improve usability, increase overall functionality and enable the development of more accurate and efficient risk and capital models.
Personal Accident
The trend of hardening rates continued in 2012 although at a slightly lower pace. Risk adjusted rate increases were between 3 percent and 11 percent. Companies whose lead terms were agreed prior to the Tohoku earthquake last year had to accept a steeper increase.
In the credit and bond primary market, rates are flat, but these are not rate-driven classes. In political risk and especially structured credit, rates are under considerable upwards pressure for obvious reasons. The outlook for 2012 is turbulent, given the prevailing macroeconomic uncertainty and instability around the world. Loss ratios are quite likely to increase.
Capacity in the credit reinsurance sector remains meaningfully over-subscribed, impacting pricing and terms. Over-subscription arises as a result of various signal contributing factors. The (re)insurance industry in general is oversubscribed, with returns in other lines of business relatively lower. We see no realistic expectation for significant change in the short term. Credit loss ratios worldwide returned to profitable positions far faster than had been anticipated.
David Flandro, Global Head of Business Intelligence, Claude Lefebvre, Head of GC Analytics EMEA Region, Mark Shumway, Senior Vice President
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Solvency II will profoundly impact the reinsurance market, though perhaps not exactly in the ways reinsurers or regulators have anticipated. This impact will not be limited to European reinsurance markets, but will be felt globally. Advances in disclosure and overall market strength will come with costs, including a more volatile pricing environment.
Guy Carpenter & Company announced the publication of Succeeding Under Solvency II - Special Considerations for Reinsurers and Counterparty Risk, the third report in the firm’s series on Solvency II preparedness developed for re/insurers operating in or covering risks in Europe. The first two reports addressed re/insurance industry requirements and key issues under Pillars I, II and III.
David Edwards, Managing Director
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Guy Carpenter & Company, LLC (Guy Carpenter) has released its fourth annual market update from its London-based Credit, Bond and Political Risk Team.
David Lewin, Managing Director
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When problems in the subprime mortgage market erupted into a full financial catastrophe last year, conventional wisdom suggested that property and casualty (P&C) insurance companies would suffer. The culprit, many believed, would not be investments in mortgage-backed securities (MBS) like the life insurers. Rather, it would be the possibility of slipped bond ratings because of problems with bond insurers, ultimately lowering the value of the bonds held in P&C investment portfolios. The increase in insured losses as a direct result of subprime and the ensuing credit crunch would certainly drive P&C companies to have poor returns, the thinking continued. Even at the mid-point of 2008, talk of a turn in the market began to percolate.
A briefing published today by Guy Carpenter & Company, LLC looks ahead to the possible effects of inflation on long-tail reinsurance, as well as the impact of the credit crunch on reinsurers in the wake of the subprime mortgage crisis. The briefing, Casualty Specialty Update, examines the twin pressures that inflation and the global credit crunch are exerting on the global casualty reinsurance industry.
Credit, Bond and Political Risk Team Honored;
Third Consecutive Year Guy Carpenter Has Won Accolade
Guy Carpenter & Company, LLC’s Credit, Bond and Political Risk Team won the “Reinsurance Broking Team of the Year” award at The Review magazine’s Worldwide Reinsurance Awards 2009, presented last night at The Dorchester Hotel in London. This year’s victory represents the third consecutive year — and the fifth time in six years — that Guy Carpenter has been awarded the “Reinsurance Broking Team of the Year” honor.
Guy Carpenter’s Credit, Bond, and Political Risk Team was hailed by the judging panel “for leading the market with new-thinking solutions.”
