Posts Tagged ‘macroeconomic’



April 25th, 2017

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part IV: Closing the Protection Gap

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whitmore_charles_photo-sm4Charles Whitmore, Managing Director

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These trends are likely to support broader product offerings and greater market stability around which the private sector may close the protection gap in EMEA and in other regions:

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April 19th, 2017

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part I

Posted at 1:00 AM ET

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Charles Whitmore, Managing Director

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On a global basis, approximately 70 (1) percent of the economic loss caused by natural catastrophe events is not covered by insurance. This gap, the cost of uninsured events, frequently falls on governments through disaster relief, welfare payments and infrastructure repair and rebuilding. The ultimate cost of these responses causes a strain on public balance sheets and an increase in public debt, ultimately burdening taxpayers. The protection gap is increasing in emerging economies especially where the amount of natural catastrophe economic loss covered by insurance dropped from 25 percent in 2002 to approximately eight percent in 2014.

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April 11th, 2017

Assessing Insurers in a Period of Rapid Change: Insurance Equity Analyst Survey 2016

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Guy Carpenter has collaborated with Mercer to survey insurance equity analysts to understand the possible objectives and aspirations of insurance company shareholders. Incorporating or at least considering the views of various stakeholders will be critical for insurers in ensuring that they are moving along the right path, especially in this uncertain environment.

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April 3rd, 2017

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Part V: Microinsurance Helping Close Insurance Gap

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aidan-pope-headshot-sm26Aidan Pope, Managing Director

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Not to be outdone, the private sector has demonstrated its commitment to bringing insurance solutions to emerging economies through the industry consortium and venture incubator Blue Marble Microinsurance. Blue Marble’s founding consortium has committed to launching ten microinsurance ventures in the next ten years to deliver risk management solutions to the underserved. Through collaboration with strategic partners, including government and quasi-government entities and innovative technology-enabled platforms, Blue Marble seeks to improve sustainability by expanding the role of insurance in society. These ventures will consider unique distribution methods, local partnerships, product development and impact services.

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March 30th, 2017

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Part IV

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aidan-pope-headshot-sm25Aidan Pope, Managing Director

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Mexico’s risk management strategy has earned a strong reputation in the international community. The World Bank said it is “at the vanguard of initiatives aimed at the development of an integrated disaster risk management framework, including the effective use of risk financing and insurance mechanisms to manage the fiscal risk derived from disasters,” highlighting it as an example for other governments to follow (1).

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March 29th, 2017

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Part III: A Lesson in Resilience from Mexico

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aidan-pope-headshot-sm24Aidan Pope, Managing Director

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The Mexican federal government’s risk management strategy exemplifies a modern, resilient disaster preparedness plan, including pre- and post-event approaches and public-private partnerships. Following the 1985 Mexico City earthquake, the Mexican National Civil Protection System (SINAPROC) was created, establishing a multi-level system to integrate stakeholders from the three levels of government, the private and social sectors, academia and scientific organizations. Its purpose was to provide an institutional framework for the improved coordination of emergency response. Its capacities in the areas of risk assessment, early warning, preparedness and disaster risk financing were developed. As SINAPROC evolved, it added risk reduction practices to shift from a reactive to a preventative, holistic and integrated risk management plan.

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March 28th, 2017

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Part II

Posted at 1:00 AM ET

aidan-pope-headshot-sm21Aidan Pope, Managing Director

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Many recent catastrophe events in the Latin America/Caribbean region provide examples of the protection gap: Only 5 percent of the USD 8 billion economic loss from Haiti’s 2010 earthquake was insured; and the insured portion of the USD 2 to 3 billion economic loss caused by the April 2016 earthquake in Manta, Ecuador, is expected to reach no more than 15 percent. The 2016 earthquake has deeply impacted the local economy and government finances as unemployment increased by approximately 50 percent and the government was compelled to increase sales taxes by two percent to fund national reparation and recovery costs. In general, emerging markets face a much larger protection gap than developed economies:

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March 27th, 2017

Public-Private Insurance Partnerships Bolster Latin American/Caribbean Resilience: Part I

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aidan-pope-headshot-sm2Aidan Pope, Managing Director

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Globally, three of the ten most costly natural disaster events in the last 35 years occurred in total or in part in the Latin America/Caribbean (LAC) region (1); losses from Hurricane Matthew in the Caribbean are still being assessed.

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March 9th, 2017

Disruptive Forces Redefining the Role of Insurance: Part II

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Victoria Carter, Vice Chairman, Global Strategic Advisory

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The world’s ageing population is causing the fourth disruptive phenomenon. For example, as Europeans’ lifespans increase and they have fewer children, the share of people aged 65 and older is projected to double from 16 percent in 2005 to 30 percent in 2050. Simultaneously, the most economically active age group (25- to 64-year olds) in Europe is projected to decline to less than half the population by 2050. These trends may pressure society’s ability to fund the increasing costs of retirement and healthcare for the elderly.

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March 8th, 2017

Disruptive Forces Redefining the Role of Insurance: Part I

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Victoria Carter, Vice Chairman, Global Strategic Advisory

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Fundamental disruptive forces are driving monumental changes in the global economy at an unprecedented rate. These forces compel the (re)insurance industry to adjust to the new reality and capitalize on the opportunities created.

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