Posts Tagged ‘Property’



May 6th, 2019

Chart: Source of Earnings for Guy Carpenter Reinsurance Composite, Year-end 2018

Posted at 1:00 AM ET

Chart presents source of earnings for the Guy Carpenter Global Reinsurance Composite, comparing year-end 2017 with year-end 2018.

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May 6th, 2019

Chart: Return on Premiums for Guy Carpenter Reinsurance Composite, Year-end 2018

Posted at 1:00 AM ET

Chart presents return on premiums for the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2018.

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May 2nd, 2019

Understanding Flood Risk in Malaysia Through Catastrophe Modeling

Posted at 1:00 AM ET

Narathip Sutchiewcharn, Senior Vice President and Claudio Saffioti, Catastrophe Model Developer

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According to Malaysia’s Department of Irrigation and Drainage, the many rivers running through the country put about 9 percent of the total land area under flood risk, potentially affecting 2.7 million people. Rapid urbanization is only going to worsen the problem through rising population concentrations and at-risk infrastructure, land consumption and the channeling of water courses.

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April 30th, 2019

Flood Event – Saint Lawrence and Ottawa Valley

Posted at 1:32 PM ET

ottawa-valley-smallSummary

A significant flood event has affected portions of the Ottawa and Saint Lawrence River Valleys and surrounding watersheds. The flooding is a result of recent snowmelt from a significant snowpack, coupled with recent periods of heavy rainfall affecting the area. Evacuations have affected over 9,500. Several thousands of homes have been inundated by the resulting floodwaters, and several thousand more are under threat in eastern Ontario and western Québec.

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April 30th, 2019

Closing The Gap: Insurance Penetration and Public Sector Risk Financing in Asia Pacific

Posted at 1:00 AM ET

michael-schwarz_resizedIn recent years, the issue of low penetration in catastrophe insurance across the growing economies of Asia Pacific, and the critical protection gap between economic losses caused by natural disaster events and insurance-covered losses are receiving the attention they merit. The insurance industry can play a significant role in narrowing the gap to help ensure sustainable economic development in one of the most dynamic regions of the world, according to Michael Schwarz, Head of Public Sector - Asia Pacific, Guy Carpenter.

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April 29th, 2019

Methodological Considerations in the Statistical Modeling of Catastrophe Bond Prices

Posted at 1:00 AM ET

major_john_gcciJohn Major, Director of Actuarial Research

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John Major has authored an article that aims to help actuaries, financial analysts, statisticians, data scientists and their clients better investigate how property catastrophe risk, and particularly catastrophe bonds, are  priced.

As in any technical discipline, statistical modeling has its customs, templates and default modes of operation, which are typically learned early in a practitioner’s education. These practices persist as “standard operating procedures,” to be modified as needs arise. The purpose of this article is to challenge those default modes as they have appeared in 21st century-published catastrophe bond pricing research.

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April 25th, 2019

Investing in a Time of Climate Change – The Sequel

Posted at 1:00 AM ET

A new report, Investing in a Time of Climate Change — The Sequel, documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition risks) on investment return expectations. The Sequel models three climate change scenarios, a 2°C, 3°C and 4°C average warming increase on preindustrial levels, over three timeframes - 2030, 2050 and 2100.

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April 23rd, 2019

NotPetya Was Not Cyber “War”

Posted at 1:00 AM ET

cyber-handbook-cover-image-smallNotPetya wreaked havoc for some large companies, costing them billions of dollars in lost revenue, damaging computer systems, and requiring significant expense to restore global operations. In its wake, entire industries reassessed their practices for patching, business continuity, supply chain interruption, and more.

Since the NotPetya event, we have learned much about the attack, but many details remain elusive. One continuing discussion for the insurance industry, however, is whether NotPetya was “warlike” - and more specifically, whether the ubiquitous war exclusion found in cyber insurance policies could have prevented coverage. A recent Wall Street Journal article described this as “a multimillion-dollar question for companies that purchase cyber insurance.”

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April 22nd, 2019

Facultative or Treaty and Why the Need for Hybrid Solutions: Part II

Posted at 1:00 AM ET

fleming_jeffJeff Fleming, Managing Director

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Turning to the other form of reinsurance, treaty is considered generally to be the “go-to” coverage solution for portfolios of risk. Challenges associated with treaty reinsurance may include:

  • Minimum and deposit premiums
  • Unnecessary coverage
  • Limited sideways coverage (reinstatements and occurrence caps).

“As a result of the limitations of each of the coverage options, a reinsurance solution that draws on both facultative and treaty enables insurers to purchase reinsurance cover that meets the specific and unique needs of their profiles,” Fleming explains. “Guy Carpenter introduced a customized alternative to facultative and treaty reinsurance - GC Hybrid Solutions.”

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