David Flandro, Head of Global Business Intelligence and Julian Alovisi, Senior Vice President
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This series has shown that terrorism remains a constant and real risk. Although more
effective counter-terrorism measures have frustrated al-Qaeda’s ability to plan largescale attacks since the events of September 11, 2001, global recorded terror incidents are at historic highs. The emergence of individuals or autonomous groups aligned to the aims of al-Qaeda continues to threaten the developed world, especially as insurgents are able to operate in unstable countries such as Pakistan and Yemen.

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David Flandro, Head of Global Business Intelligence and Julian Alovisi, Senior Vice President
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To support the process of managing and underwriting the terrorism peril, (re)insurers
are increasingly using tools to analyze the risk. The dynamic nature of terrorism, and
the uncertainty in identifying the targets and frequency of attacks, requires a different
approach to manage the risk.

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2010 Hurricane Season Begins: Knowing, Understanding and Better Managing the Risks, Part I: State of the Florida Marketplace:   The 2010 hurricane season kicked-off on June 1 and the meteorological forces wasted no time in getting down to business. Tropical storm Agatha slammed into Central America, killing at least 101 people. The hurricane season kick-off and the storm occurred as backdrops to the wrap up of the June 1, 2010 reinsurance renewals, traditionally centered on the Florida property marketplace.

2010 Hurricane Season Begins: Knowing, Understanding and Better Managing the Risks, Part II: Florida Hurricane Catastrophe Fund, Innovative Products: One of the critical components in the majority of Florida contracts renewing at June 1 is the structure of the Florida Hurricane Catastrophe Fund (FHCF). While factors influencing the FHCF structure overall were dealt with earlier than in prior years, there remained questions regarding the viability of the TICL layer and rating agencies’ treatment of TICL within the reinsurance structure.

2010 Hurricane Season Begins: Knowing, Understanding and Better Managing the Risks, Part III: 2010 Hurricane Forecast: To coincide with the start of the hurricane season, Guy Carpenter has summarized the various forecasters’ predictions for the 2010 season. Several meteorologists have released forecasts for the forthcoming hurricane season and there seems to be a general consensus that 2010 will see unusually high activity. If this prediction proves to be true, the 2010 hurricane season will stand in sharp contrast to the relatively quiet 2009 season.

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

Continue reading…

Lara Mowery, Managing Director and Julian Alovisi, Senior Vice President
Contact

To coincide with the start of the hurricane season, Guy Carpenter has summarized the various forecasters’ predictions for the 2010 season. Several meteorologists have released forecasts for the forthcoming hurricane season and there seems to be a general consensus that 2010 will see unusually high activity. If this prediction proves to be true, the 2010 hurricane season will stand in sharp contrast to the relatively quiet 2009 season.

Continue reading…

Lara Mowery, Managing Director and Julian Alovisi, Senior Vice President
Contact

Florida Hurricane Catastrophe Fund

One of the critical components in the majority of Florida contracts renewing at June 1 is the structure of the Florida Hurricane Catastrophe Fund (FHCF). While factors influencing the FHCF structure overall were dealt with earlier than in prior years, there remained questions regarding the viability of the TICL layer and rating agencies’ treatment of TICL within the reinsurance structure. In 2009 there was considerable concern regarding the viability of this upper layer of coverage due to the impact of the financial crisis on the municipal bond market, which the FHCF utilizes to pay post event claims above their available cash on hand. Statutorily, the legislature reduced coverage offered by USD2 billion to USD10 billion last year. Due in part to companies’ concerns regarding the timing of payments received from TICL, only USD5.56 billion was taken up. Of this, approximately 65 percent was selected by Citizens Property Insurance Corporation (Citizens).

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Lara Mowery, Managing Director and Julian Alovisi, Senior Vice President
Contact

The 2010 hurricane season kicked-off on June 1 and the meteorological forces wasted no time in getting down to business. Tropical storm Agatha slammed into Central America, killing at least 101 people. The hurricane season kick-off and the storm occurred as backdrops to the wrap up of the June 1, 2010 reinsurance renewals, traditionally centered on the Florida property marketplace.

Continue reading…

An oil well that has been leaking sweet light crude oil, condensate and gas into the Timor Sea for 10 weeks has been badly damaged after a fire broke out on the unit on November 1, 2009. PTT Exploration and Production Australasia (PTTEP Australasia), the company which operates the West Atlas drilling rig and Montara wellhead platform, said the blaze started when workers were pouring mud into a hole that had been leaking up to 400 barrels of oil a day since August 21. PTTEP Australasia says it does not know what sparked the blaze. Norwegian rig owner Seadrill, meanwhile, confirmed there were no personnel on the rig when the blaze started. According to reports, PTTEP Australasia contracted the drilling rig and wellhead platform from Seadrill for AUD255,000 a day (USD230,000). PTTEP Australasia said the rig was badly damaged by the fire after a portion buckled and came to rest on top of the wellhead platform.

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Typhoon Mirinae made landfall as a borderline Category 1-to-Category 2 typhoon in the Philippine province of Quezon at around 18:00 UTC on October 30, 2009 (02:00 on October 31 local time) with sustained winds of around 93 mph (150 kmph), according to the Joint Typhoon Warning Center (JTWC). The typhoon brought powerful winds and heavy rain to areas in southern and central Luzon, killing at least 16 people in six provinces (Camarines Norte, Catanduanes, Cavite, Laguna, Rizal and Quezon). The JTWC said Mirinae rapidly weakened as it tracked west across Luzon. The storm passed to the south of Manila (population of around 12 million people), and the capital was subjected to heavy rain and tropical storm-force winds. Although Mirinae triggered floods as it moved across Luzon, officials said the storm’s rapid progress, coupled with the emergency measures implemented by the Philippine authorities, meant the country was spared the devastation witnessed after Typhoon Ketsana and Typhoon Parma made landfall in September and October, respectively.

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A massive fire broke out on October 29, 2009 at an oil storage depot in the western Indian state of Rajasthan, killing at least six people and injuring 150 others. Two huge explosions were heard before the fire ignited and rapidly spread. Reports said the blaze ignited most of the depot, including every oil storage unit. The fire broke out around 19:30 local time (14:00 UTC) at the Jaipur storage depot run by Indian Oil Corporation (IOC) and was visible from over 25 kilometers (16 miles) away, according to reports. Company officials said the depot covers an area of several square kilometers and the oil tanks store gasoline, diesel and kerosene fuel for several state-owned oil companies. Reports said the depot has a 100,000 kiloliter capacity.

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