Posts Tagged ‘medical’



November 9th, 2017

For MPL, Market Softening Continues in 2016—Signs of Pressure Emerge

Posted at 4:00 AM ET

Steve Underdal, Managing Director; Greg Bliss, Managing Director; Matt Walter, Senior Vice President and Blake Berman, Senior Vice President

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Since 2010, the medical professional liability (MPL) industry has been navigating a soft market, with declining profitability, diminished investment gains and rising accident year operating ratios. Yet, reserve redundancies have kept calendar year combined ratios below 100 percent, allowing carriers to pay dividends to policyholders while maintaining favorable returns on equity. Recent trends in the MPL insurance industry, including more aggressive competition among carriers and a leveling off of frequency trends, are driving accident year combined ratios higher. Without the continued tailwind of favorable reserve development, current market rates could prove unsustainable, driving market hardening in the coming years.

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August 30th, 2017

The Transfer of Pandemic Risk from the Public Sector

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on pandemic risk and the role of the capital markets to transfer risk from the public sector.

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July 26th, 2017

Public Sector Risk Financing Perspectives – Pandemic Risk: Part II

Posted at 1:00 AM ET

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Cory Anger, Global Head of ILS Structuring, GC Securities*

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As investors become comfortable with pandemic risk, alternative capital is beginning to pivot its capacity to providing more action oriented pandemic protection during the beginning or ongoing phases of a pandemic (1) rather than focusing solely on replenishing capital post-event. Alternative capital also has the ability to provide multi-year protection when interim response structures are important for governmental organizations such as development banks, health organizations and sovereigns, to rapidly manage the needed monetary support. The goal is to contain and mitigate epidemics at their origin and prevent their potential global migration. The migration may impact key industries (tourism, hotels and transportation) and government budgets.

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July 25th, 2017

Public Sector Risk Financing Perspectives – Pandemic Risk: Part I

Posted at 1:00 AM ET

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Cory Anger, Global Head of ILS Structuring, GC Securities*

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Public entities’ use of capital markets-based risk transfer capacity for the assumption of natural disaster losses, such as the cost of emergency relief and infrastructure and property damage has demonstrated success in de-risking public sector balance sheets. Capital markets innovators are beginning to leverage the outcomes achieved in the natural disaster sphere to other types of public sector severity losses, notably pandemic diseases. The capital markets may help fund resources to rapidly contain the spread of a pandemic, share the burden of associated medical expenses and/or manage the financial impact of the higher mortality rates.

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January 25th, 2017

Public Sector Risk Financing Perspectives – Pandemic Risk

Posted at 1:00 AM ET

cory-anger-small-sqCory Anger, Global Head of ILS Structuring, GC Securities*

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Public entities’ use of capital markets-based risk transfer capacity for the assumption of natural disaster losses, such as the cost of emergency relief and infrastructure and property damage has demonstrated success in de-risking public sector balance sheets. Capital markets innovators are beginning to leverage the outcomes achieved in the natural disaster sphere to other types of public sector severity losses, notably pandemic diseases. The capital markets may help fund resources to rapidly contain the spread of a pandemic, share the burden of associated medical expenses and/or manage the financial impact of the higher mortality rates.

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September 27th, 2016

Longevity Risk

Posted at 1:00 AM ET

The impacts to society from changes in longevity and life expectancy will be wide-ranging and incredibly difficult issues to grapple with. A 2012 International Monetary Fund (IMF) study revealed that if individuals lived three years longer than expected the cost of aging could increase by 50 percent. This translates to 50 percent of 2010 gross domestic product (GDP) in advanced economies and 25 percent of 2010 GDP in emerging economies. Globally that amounts to tens of trillions of US dollars. The United Nations expects the aggregate expenses of the elderly will double over the period between 2010 and 2050. The figure below shows the projected trend of rising life expectancy to continue in all regions of the globe regardless of economic advancement.

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August 16th, 2016

Advancing Technologies Raise Issues for (Re)insurers

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on advancing technologies that are creating new opportunities and new risks for (re)insurers.

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August 1st, 2016

New Economics Are Creating New Medicine, Part II

Posted at 1:00 AM ET

Predictive analytics or predictive medicine uses patient-specific data and enables a more customized, precise approach for patient-specific treatment. With the insight this provides, biotechnology, pharmaceutical and medical device companies can partner to provide better care, improve compliance, lower readmission rates and drive improved outcomes. This can lower unnecessary and ineffective treatments and decrease the overall cost of care. However, taken to an extreme scenario, life science companies could invest in developing much more specific treatments for very small cohorts of affected patients. These focused therapies could be extremely expensive and would be wildly impractical without the intersection of new technology and new economics.

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July 28th, 2016

New Economics Are Creating New Medicine, Part I

Posted at 1:00 AM ET

Through the Affordable Care Act, many measures are being implemented that are expected to have a positive impact on bending the healthcare cost curve downward in the long term. However, the same act removed annual and lifetime limits for medical insurance claims. As a result, the maximum potential loss from a single individual is a new frontier of risk, with new heights being reached each year. This is both a frequency and severity issue.

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April 20th, 2016

Emerging Risks for Life, Health and Longevity

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on the emerging risks affecting life, health and longevity. 

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