Posts Tagged ‘GC LiveCat’



December 1st, 2011

GC Securities* Catastrophe Bond Market Update: Third Quarter 2011, Part II

Posted at 1:00 AM ET

Industry Loss Warranties (ILW)

Consistent with seasonal trading patterns, ILW activity tailed off in the third quarter relative to pre-U.S. wind season levels. Prices were driven down by increased available capacity (from sellers looking to take advantage of price increases available at the conclusion of the first quarter) and a demand reduction from protection buyers as the U.S. wind season proved less damaging than forecasts suggested.

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June 15th, 2010

2010 Hurricane Season Begins: Knowing, Understanding and Better Managing the Risks, Part IV: Tools for Understanding and Managing Risk

Posted at 2:00 AM ET

Lara Mowery, Managing Director and Julian Alovisi, Senior Vice President
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Guy Carpenter offers the solutions to help (re)insurers manage the risks associated with hurricane exposures and preparedness through our forward looking hazard forecasting tools. Assessing the impact and potential loss damage of hurricane activity on a risk portfolio can now be accomplished with more detailed information than ever before.

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November 9th, 2009

Near-Term Capital Management: Hidden Opportunity

Posted at 1:00 AM ET

harnick_michelle_141pxMichelle Harnick, Managing Director
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We’ve had a fairly quiet catastrophe year, making it easy for risk managers to slip into a false sense of comfort. But, the situation could have been much different, especially if Hurricane Bill had taken a slightly altered course. A single storm can affect the insurance industry profoundly, especially if it makes landfall where there is a high accumulation of risk. When the unexpected begins to take shape, the range of options available to risk bearers shrinks rapidly, and even the most thorough of plans can be thwarted. Any measure that can help carriers protect their capital as a storm is bearing down on its insureds can have an impact all the way to market capitalization.

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August 18th, 2009

Update: Hurricane Bill

Posted at 11:59 AM ET

small-hurricanebill2Hurricane Bill is currently located approximately 810 miles (1,305 kilometers) east of the Leeward Islands and packs sustained winds of around 100 mph (160 kmph), according to the National Hurricane Center (NHC). Bill is travelling in a west-northwest direction and this motion is expected to continue for the next day or so with a gradual turn to the northwest later this week. The NHC said hurricane-force winds extend 30 miles (45 kilometers) from the centre of the storm while tropical storm-force winds extend 150 miles (240 kilometers).

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August 17th, 2009

Hurricane Bill

Posted at 11:59 AM ET

small-hurricanebillHurricane Bill is currently located approximately 1,160 miles (1,870 kilometers) east of the Lesser Antilles and packs sustained winds of around 75 mph (120 kmph), according to the National Hurricane Center (NHC). Bill is travelling in a west-northwest direction and this motion is expected to continue over the next 48 hours as the storm tracks over the central Atlantic Ocean. The NHC said hurricane-force winds extend 30 miles (45 kilometers) from the centre of the storm while tropical storm-force winds extend 145 miles (230 kilometers).

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August 10th, 2009

Guy Carpenter LiveCat™ Hurricane Index

Posted at 1:01 AM ET

harnick_michelle_141pxMichelle Harnick, Managing Director
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The Guy Carpenter Hurricane Index helps (re)insurers assess the potential losses from hurricanes making landfall in the Atlantic Basin by defined regions: Northeast, Southeast, Florida, and Gulf. Guy Carpenter created this index in response to the (re)insurance industry’s questions about the credibility of catastrophe models after the 2004 and 2005 hurricane seasons and their need to better understand and manage their catastrophe risk. Unlike most indices, which do not differentiate by location and only take into account frequency or severity and historical climatologic information, the Guy Carpenter Hurricane Index also considers current meteorological information and forecasts about live events, the forecast landfall location, and the forecast landfall probability and the conditional severity.

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July 30th, 2009

GC LiveCat Turns Last-Minute Decisions into a Competitive Advantage

Posted at 1:01 AM ET

harnick_michelle_141pxMichelle Harnick, Managing Director
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A hurricane is headed toward a coastal urban center, bringing with it the likelihood of outsized insured losses. The storm is heading into Galveston, Texas. The risk manager, tracking the situation, is concerned that the storm could strike a heavily exposed region. At this point, one of three situations could occur: (1) the storm does not make landfall, (2) the storm does make landfall, causing much more damage than expected, or (3) the storm makes landfall, but the risk manager has laid off some of the risk using livecat cover. 

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July 20th, 2009

Enhance Capital Productivity When a Hurricane Is Coming

Posted at 1:00 AM ET

harnick_michelle_photoMichelle Harnick, Managing Director
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September 2008 brought two major shocks to the global (re)insurance industry. The financial catastrophe captured the headlines, ultimately depleting reinsurer capital by 18 percent, as measured by the Guy Carpenter Global Reinsurance Composite. At the same time, Hurricane Ike pushed through the Gulf of Mexico eventually costing carriers USD11.5 billion. These two events have left the industry in a capital-constrained environment. While last year’s surplus provided a sufficient cushion for absorbing the blows, the days of abundant capital are gone for the foreseeable future.

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July 15th, 2009

Beware the Benign Hurricane Forecast

Posted at 1:01 AM ET

harnick_michelle_photoMichelle Harnick, Managing Director
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The 2009 hurricane season is expected to be moderate, but that’s no reason to let your defenses down. In setting your expectations for the coming months, it pays to consider severity as well as frequency. Most major forecasts address the number of storms anticipated — but they don’t account for severity. A mild Atlantic hurricane season could still trigger outsized insured losses, and an exposed (re)insurer could feel the shocks on its bottom line, return on equity (ROE) ratio, and even market capitalization.

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