Posts Tagged ‘political risk’



April 8th, 2013

Reevaluation of Terrorism Risk and Coverage Prompted by Global Unrest and Political Instability

Posted at 1:00 AM ET

The dramatic rise in political instability and civil unrest across the globe, including uprisings in the Middle East and protests in Greece and Spain, has triggered a significant shift in the nature of terrorism risk and has highlighted the need for tailored terrorism and political violence protection, according to  “Tensions Building: the Changing Nature of Terrorism Risk and Coverage,” by Guy Carpenter.

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December 18th, 2012

Terrorism (Re)Insurance Market Today

Posted at 1:00 AM ET

David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President, Lucy Dalimonte, Senior Vice President, Ellen Rieder, Managing Director and Emma Karhan, Senior Vice President
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The unrest around the world outlined earlier in the report has begun to impact the terror (re)insurance market, not only with regard to supply and demand but also in terms of how risks and coverages are defined. Although there is an abundance of capacity in the market due to the absence of a recent major terrorism loss (resulting in a stable to softening treaty terrorism market), civil unrest and/or riot coverages in some international terrorism programs are impacting several carriers. Indeed, the dramatic increase in global unrest has caused an increased frequency of localized or territory-specific losses in the facultative reinsurance market.

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December 4th, 2012

Global Unrest and Political Instability Prompts Reevaluation of Terrorism Risk and Coverage

Posted at 11:30 PM ET

The dramatic rise in political instability and civil unrest across the globe, including uprisings in the Middle East and protests in Greece and Spain, has triggered a significant shift in the nature of terrorism risk and has highlighted the need for tailored terrorism and political violence protection, according to a new report on global terrorism and the terror reinsurance market, “Tensions Building: the Changing Nature of Terrorism Risk and Coverage,” released by Guy Carpenter.

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February 22nd, 2012

January 2012 Reinsurance Renewal: Credit, Bond & Political Risk

Posted at 1:00 AM ET

In the credit and bond primary market, rates are flat, but these are not rate-driven classes. In political risk and especially structured credit, rates are under considerable upwards pressure for obvious reasons. The outlook for 2012 is turbulent, given the prevailing macroeconomic uncertainty and instability around the world. Loss ratios are quite likely to increase.

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February 8th, 2011

Chart: Specialty Lines - Typical Excess of Loss Rate Changes at the January 1 Renewal

Posted at 1:00 AM ET

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January 3rd, 2011

2011 Reinsurance Renewal Rates: Global Credit, Bond and Political Risk

Posted at 1:00 AM ET

141x141jan1thumb50Loss experience defined the credit, bond and political risk reinsurance renewal, with loss-free programs securing significant rate declines and those affected seeing steep increases. Reinsurance rates on loss-free working layers fell 20 percent on average, while those with losses saw increases of 15 percent to 25 percent, depending on severity. Rate increases were slight for high-risk excess programs if there was underlying activity and flat where there was none.

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November 22nd, 2010

2010 Market Update: Insight from Guy Carpenter’s Credit, Bond and Political Risk Team

Posted at 4:00 AM ET

David Edwards, Managing Director
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Guy Carpenter & Company, LLC (Guy Carpenter) has released its fourth annual market update from its London-based Credit, Bond and Political Risk Team.

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February 9th, 2010

Credit, Bond and Political Risk Renewals

Posted at 11:00 AM ET

Credit and Bond 

The market conditions for 2010 are fundamentally different from the 2009 renewal season. 2009 saw very tough conditions with capacity scarce and placements taking much longer to finalize. In 2010, we have seen continuing hardening of terms, but a general abundance of capacity and much quicker response times from reinsurers. The loss of capacity from Swiss Re was comfortably exceeded by increases from existing and new reinsurers.  

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September 24th, 2009

Casualty Specialty Update: The Credit Crunch and Reinsurance

Posted at 1:00 AM ET

casualtyDavid Lewin, Managing Director
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When problems in the subprime mortgage market erupted into a full financial catastrophe last year, conventional wisdom suggested that property and casualty (P&C) insurance companies would suffer. The culprit, many believed, would not be investments in mortgage-backed securities (MBS) like the life insurers. Rather, it would be the possibility of slipped bond ratings because of problems with bond insurers, ultimately lowering the value of the bonds held in P&C investment portfolios. The increase in insured losses as a direct result of subprime and the ensuing credit crunch would certainly drive P&C companies to have poor returns, the thinking continued. Even at the mid-point of 2008, talk of a turn in the market began to percolate.

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September 8th, 2009

Guy Carpenter Briefing Finds Rising Interest Rates Could Affect Reinsurers’ Claims-Paying Ability over Long Term, Industry Stable despite Lingering Effects of Financial Crisis

Posted at 12:30 AM ET

casualtyA briefing published today by Guy Carpenter & Company, LLC looks ahead to the possible effects of inflation on long-tail reinsurance, as well as the impact of the credit crunch on reinsurers in the wake of the subprime mortgage crisis. The briefing, Casualty Specialty Update, examines the twin pressures that inflation and the global credit crunch are exerting on the global casualty reinsurance industry.

Click here to download the briefing >>

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