Posts Tagged ‘public sector’



February 8th, 2017

Public Sector Risk Financing Perspectives – Sharing Visual Intelligence for Disaster Response: Part II

Posted at 1:00 AM ET

beverley-adams-sm21Dr. Beverley Adams, Head of CAT Planning and Response

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National disaster response plans of governments rarely include references to insurance or make provisions for visual intelligence as part of the operational response toolkit. Recent events reaffirm the value of visual intelligence - particularly when access to sites is restricted - and suggest that a more collaborative approach between emergency services and the insurance industry would enhance public sector response and facilitate community resilience.

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February 7th, 2017

Public Sector Risk Financing Perspectives – Sharing Visual Intelligence for Disaster Response: Part I

Posted at 1:00 AM ET

beverley-adams-sm2Dr. Beverley Adams, Head of CAT Planning and Response

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As governments and emergency responders focus on search and rescue in the hours and days following catastrophic events, the (re)insurance industry is autonomously responding with visual technologies for loss assessment.

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February 2nd, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part IV

Posted at 1:00 AM ET

emma-karhan-sm1Emma Karhan, Managing Director

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Insurance is about the pooling of risk and providing support for impacted economies. Expanding insurance coverages to achieve these objectives against terror losses requires a more granular level of insight into the impacts of terrorist attacks. We have a relatively high level of loss impact knowledge for mature lines of business, such as property catastrophe coverages; this has been driven by losses and the ensuing needs for modeling and pricing improvements. However, the terrorism market is a less mature market that has not suffered a frequency of significantly large insured losses that would otherwise assist in a better understanding of the nature of the peril and its direct and indirect impacts on an economy. Additionally, this peril has the added complexity of unpredictable behavioral factors of terrorists that are very difficult to sensibly and consistently be included in pricing models. Consequently, the (re)insurance industry needs to devise improved transparency through innovative modeling and pricing methodologies to ensure that capital continues to support this line of business - underpinning further product development.

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January 31st, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part III

Posted at 1:00 AM ET

emma-karhan-smEmma Karhan, Managing Director

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The (re)insurance industry needs to be more proactive in understanding and defining the boundary and extent of insured loss along with understanding the types of targets that have a higher probability of attack. Data in the Global Terrorism Database (1) identifies small businesses, retailers, tourist attractions and transportation hubs as increasingly likely targets, not iconic targets such as New York’s World Trade Center, in 2001. These smaller and less iconic targets are typically more vulnerable to the evolving type of terrorism attack (marauding arms, small explosives) that, while causing smaller direct physical damage and losses, still have the potential for significant contingent losses.

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January 30th, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part II

Posted at 1:00 AM ET

emma-karhan-smEmma Karhan, Managing Director

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The dynamic of pricing decrease and oversupply of capital has also been driven by the industry’s need to diversify into non-natural catastrophe lines of business in the current economic environment, and the fact that the terror market has a loss ratio of almost zero percent. In 2015, Swiss Re’s Sigma report calculated that 27 terrorist events resulted in 1082 fatalities, but no insured losses. Unlike other lines of business, recent pricing and capacity trends have not been driven by a better technical understanding of the impact of losses that normally translates into improved peril understanding or advances in pricing or modeling techniques. This has generally inhibited the industry from expanding its product base for terrorism in line with the evolution of the peril, concentrating more on supporting the pools and the current established bounds of insurable loss.

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January 26th, 2017

Public Sector Risk Financing Perspectives – Terror Risk: Part I

Posted at 1:00 AM ET

emma-karhan-sm1Emma Karhan, Managing Director

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The (re)insurance industry should look towards closing the gap between economic and insured terror losses.

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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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January 24th, 2017

Public Sector Risk Financing Perspectives in Asia Pacific: Part II: Highlights of Recent Initiatives

Posted at 1:00 AM ET

graham-jones-smGraham Jones, Senior Vice President

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In July 2016, the China Residential Earthquake Insurance Pool (CREIP) was jointly established by the China Insurance Regulatory Commission (CIRC) and Ministry of Finance. In development since 2014, the scheme consists of 45 insurers distributing policies with basic limits of USD 7,500 and USD 3,000 for urban and rural residents, respectively. Coverage up to a maximum limit of USD 150,000 is negotiable. The claims process has been simplified with payouts equaling zero, 50 or 100 percent of the policy limit based on five damage levels.

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January 23rd, 2017

Public Sector Risk Financing Perspectives in Asia Pacific: Part I

Posted at 1:00 AM ET

graham-jones-smGraham Jones, Senior Vice President

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According to United Nations estimates, 54 percent of the world’s population lives in Eastern, Southern and Southeastern Asia. The region hosts 778 million urban inhabitants and seven out of the world’s top ten most populated cities. The region is also home to every major peril - from cyclone to tsunami - and has experienced some of the world’s largest catastrophes based on economic loss. While there are natural catastrophes all over the world, Asia is a unique confluence of people and perils.

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January 19th, 2017

Public Sector Risk Financing Perspectives in Latin America: Part II

Posted at 1:00 AM ET

aidan-pope-headshot-sm21Aidan Pope, Managing Director

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In response to the continued need for post-event budget allocation, the Mexican federal government established the Fund for Natural Disasters (FONDEN) in 1996 (1). It is a financial vehicle by which the federal government provides pre-event funding from tax revenues for post-disaster response and reconstruction - it has been critical in providing the government with access to international risk transfer schemes.

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