Posts Tagged ‘ECM’



September 13th, 2011

Solvency II: Changing the Game

Posted at 1:00 AM ET

lightfoot_david_gcciDavid Lightfoot, Head of GC Analytics - International
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Market consensus holds that Solvency II will ultimately benefit reinsurers, as primary insurers faced with higher risk-adjusted capital requirements will turn to the reinsurance market as a relatively inexpensive source of additional capital and risk transfer. This assumption, however, conceals numerous challenges - and several opportunities - that Solvency II presents.

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July 25th, 2011

Guy Carpenter Introduces MetaRisk® 6.0 For Enhanced Risk and Capital Management Decision Making

Posted at 1:00 AM ET

Guy Carpenter & Company announced the release of MetaRisk 6.0, the latest version of the firm’s risk and capital decision tool. MetaRisk gives users the ability to interact with the drivers of risk in order to understand systemic and unique risk sources, reflect correlations among assets and liabilities, allocate capital and the cost of reinsurance, monitor earnings volatility and quantify overall capital adequacy.

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November 11th, 2010

Turn Insurance Portfolio Modeling and Management into a Strategic Advantage

Posted at 1:01 AM ET

tedeschi_john_gcciJohn Tedeschi, Chief of Catastrophe Modeling
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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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October 21st, 2009

Update: Standard & Poor’s Capital Model

Posted at 9:00 AM ET

Scott Lohman, Managing Director, Financial Intelligence Team
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Standard & Poor’s (S&P) is now performing additional analysis on loss reserves using a product called “Rescue,” which is developed by an outside vendor. Rescue obtains triangles from the company being examined instead of using Schedule P data. This approach offers data for more years for long-tail lines of business.

The in-depth analysis that S&P conducts with Rescue takes longer than the traditional approach (i.e., using Schedule P data), so it won’t use this approach every year. Rather, S&P will adjust total adjusted capital (TAC) to account for any difference between carried reserves and the company estimate.

October 12th, 2009

Turn Solvency II Compliance into a Competitive Advantage

Posted at 1:00 AM ET

keeling_henry_141x141Henry Keeling, President and CEO of Guy Carpenter’s International Operations
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The emerging consensus seems to be that Solvency II will cost a lot and make the (re)insurance business more complicated. If conventional approaches to regulatory compliance are applied, this is likely to be true. After all, compliance tends to be seen as just another expense. This does not have to be the case for Solvency II, however. Choosing the right approach could free capital for investment elsewhere, ultimately resulting in a competitive advantage. “Competitive compliance,” consequently, can create an upside where most would perceive only a cost to be managed.

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September 10th, 2009

Optimize Capital Allocation with Co-xTVaR

Posted at 6:00 AM ET

Donald Mango, Chief Actuary, and Susan Witcraft, Managing Director
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In choosing a capital allocation method, firms must balance the sophistication of the method with calculation time and resource commitment. One approach, co-xTVaR, strikes a balance between theoretical soundness and efficiency. In a capital-constrained environment, using co-xTVaR to allocate the cost of capital can provide a clear competitive advantage.

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September 9th, 2009

Strategy Should Drive Solvency II Compliance

Posted at 6:01 AM ET

Frank Achtert, Managing Director, and Eddy Vanbeneden, Managing Director
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Lately, discussion about the use of capital models in Europe has been driven by Solvency II. A major regulation is on the horizon and is progressively introducing considerable change in the how the insurance industry will manage risk. Important investment has already begun and will continue, as companies have to integrate this new regulatory regime in their management approaches. With Solvency II compliance driving the adoption of economic capital models, though, many (re)insurers could miss an opportunity to secure a competitive advantage. Instead of using compliance as the impetus for capital modeling, strategy should come first.

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July 29th, 2009

Five Ways to Make Your Capital More Productive

Posted at 1:01 AM ET

Susan Witcraft, Managing Director, Financial Intelligence Team
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The financial catastrophe may be almost a year behind us, but we’re still dealing with the effects. Capital remains constrained, and it will be a while before balance sheets return to early 2008 levels. (Re)insurers have had to learn to do more with less — deploying limited capital in a way that maximizes earnings and reaches challenging return on equity (ROE) targets. With MetaRisk®, Guy Carpenter’s economic capital model, you can delve into the scenarios that could mean the difference between capital productivity and missed opportunity.

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November 21st, 2008

Week’s Top Stories: Nov 15 - 21, 2008

Posted at 1:00 AM ET

Reinsurer Diversification: The Guy Carpenter Model: Instrat®, Guy Carpenter’s quantitative services unit, has developed a reinsurer credit model.

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Reinsurer Diversification: Roots and Benefits: Cedents are becoming increasingly concerned about the security of their reinsurers, particularly in light of the global financial catastrophe.

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Chart: GC Reinsurance Composite: Earning Sources at Nine Months: With the majority of Guy Carpenter Reinsurance Composite members’ third quarter results now reported, some clear trends have emerged.

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Get Credit for Your ECM with S&P: S&P has released a new framework for determining whether a carrier’s own ECM can receive partial credit in the S&P capital adequacy evaluation.

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Book Value Update, Nov 17, 2008: As publicly traded (re)insurers continue to report their third quarter results, the impact of the ongoing financial catastrophe is becoming more noticeable.

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Most Popular Keyword: asset impairment

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2008 Reinsurance Readers’ Awards: Your vote counts. Click here to participate in the 2008 Reinsurance magazine Readers’ Awards survey.

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