Posts Tagged ‘Property’



February 21st, 2019

Building for Resilience: How to Avoid a Catastrophe Model Failure: Part II

Posted at 1:00 AM ET

Imelda Powers, Global Chief Catastrophe Modeler

Contact

Model Suitability Analysis

There is a repertoire of tests, at both the macro and micro levels, to evaluate the merits of a CAT model.  Regardless of resources, insurers should analyze how each test’s result informs their view of risk. Here we review the macro level.

Continue reading…

February 20th, 2019

Risk Financing Strategies Needed as Exposure to Flood Increases

Posted at 1:00 AM ET

extreme-weather-2The affordability of flood resilience will become an increasingly critical issue as rising sea levels and urbanization expose a growing number of people and population centers to floods, says the World Economic Forum’s Global Risk Report 2019.

The 14th edition of the Global Risks Report, prepared with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies, states that robust risk financing strategies will be required to fund investment in adaptation and to pay for recovery when floods occur. Continue reading…

February 14th, 2019

Building for Resilience: How to Avoid a Catastrophe Model Failure: Part I

Posted at 1:00 AM ET

Imelda Powers, Global Chief Catastrophe Modeler

Contact

Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Continue reading…

February 13th, 2019

IoT Devices Increase Security Incident Risks

Posted at 1:00 AM ET

Industrial control systems, smart buildings and homes, pacemakers, cameras, and even fish tanks - all of these Internet of Things (IoT) products have been hacked by cyber-attackers looking to disrupt networks and extort money from users, says the report The US Financial and Professional Lines Market in 2019: Our Top 10 List by Guy Carpenter’s affiliate company, Marsh. Continue reading…

February 12th, 2019

Chart: Global Property Catastrophe ROL Index

Posted at 1:00 AM ET

The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

Continue reading…

February 7th, 2019

Automobile Liability Segment Outlook

Posted at 1:00 AM ET

In 2017, writers of automobile (auto) liability insurance continued to cope with deteriorating combined ratios, which remained above 100 percent for the seventh consecutive year. While carriers have implemented effective strategies that improved their operations and as a result are achieving improved expense ratios, evolving market and environment factors continue to challenge auto insurers. Consequently, improved expense ratios and premium increases did not rise as rapidly as claims and losses. The outlook for the sector remains negative. Continue reading…

February 5th, 2019

Environmental Disasters Leading to Increased Disruption to Supply-Chains

Posted at 1:00 AM ET

extreme-weather-2As environmental risks crystallize with increasing frequency and severity, the impact on global value chains is likely to intensify, weakening overall resilience, according to Global Risks Report 2019, which was produced by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies. Continue reading…

January 24th, 2019

New Approaches to Understanding and Modeling Cyber Risk

Posted at 1:00 AM ET

On October 21, 2016, a distributed denial of service attack (DDoS) rendered a large number of the world’s most popular websites inaccessible to many users, including Twitter, Amazon, Netflix, and GitHub.

The internet outage conscripted vulnerable Internet of Things (IoT) devices such as routers, DVRs and CCTV cameras to overwhelm DNS provider Dyn, effectively hampering internet users’ ability to access websites across Europe and North America. The attack was carried out using an IoT botnet called Mirai, which works by continuously scanning for IoT devices with factory default user names and passwords. Continue reading…

January 23rd, 2019

Excess and Surplus (E&S) Segment Outlook

Posted at 1:00 AM ET

The excess and surplus (E&S) lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat. Continue reading…