Posts Tagged ‘rating agencies’



November 30th, 2016

Chart: What is the Biggest Threat to (Re)insurers’ Plans for Growth?

Posted at 1:00 AM ET

Chart highlights the result of a survey taken of 107 insurance and reinsurance professionals conducted by Guy Carpenter at the 2016 annual meeting of the Property Casualty Insurers Association of America when asked what they see as the biggest threat to their plans for growth.

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October 23rd, 2016

A.M. Best’s More Transparent Ratings Criteria Provide Benefits to Insurers That Proactively “Own Their Ratings”

Posted at 1:00 AM ET

esimpson-hs-smEric Simpson, Managing Director

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Maintaining or improving ratings is a priority for most insurers. This can be challenging amid increasing demands for companies to “own their risk” (Own Risk and Solvency Assessment “ORSA”) in an environment of evolving rating agency requirements, including A.M. Best’s (Best) proposed ratings methodology and Stochastic-based Best’s Capital Adequacy Ratio (BCAR) criteria.

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September 12th, 2016

(Re)Insurers Modifying Their Behavior Ahead Of A.M. Best’s New Ratings And BCAR Criteria - GC@MC Commentary

Posted at 3:00 AM ET

eric-simpson-smallmurray_mark-smEric Simpson, Managing Director and Mark Murray, Senior Vice President

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Industry Accelerates Risk Profile Analytics and Development of Their Own Risk Tolerances and Stochastic Capital Modeling

The launch of A.M. Best’s (Best) new ratings and Stochastic-based Best’s Capital Adequacy Ratio (BCAR) draft criteria became an inflection point for (re)insurers worldwide. The 2016 changes represent Best’s first major overhaul in over 20 years and are leading to a growing number of changes in market behaviors across the company size spectrum. (Re)insurers are assessing their risk and capital management positions in anticipation of the impacts of Best’s new requirements even though the changes will not result in massive differences in its published ratings nor likely become effective until later in 2017, according to Eric Simpson, Managing Director and Mark Murray, Senior Vice President of Guy Carpenter.

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July 18th, 2016

The Challenge Of Cyber Exposure

Posted at 1:00 AM ET

Here we review GC Capital Ideas posts on the challenge the peril of cyber risk poses for (re)insurers and rating agencies and how the management of this risk is evolving.

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July 7th, 2016

Changes to Best’s Capital Adequacy Ratio (BCAR)

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on developing changes to Best’s Capital Adequacy Ratio (BCAR) and the potential impact of those changes on (re)insurers.

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February 11th, 2016

Meeting the Challenges: Catastrophe Modeling

Posted at 1:00 AM ET

In realizing the goal of profitable growth, (re)insurers require a trusted partner to help them manage a rapidly evolving regulatory and rating agency environment.

Catastrophe Modeling

The insurance industry relies to a large extent on catastrophe models to manage catastrophe risk. Regulators and rating agencies recognize this fact by asking companies to justify their modeling approach. The underlying objective of such rules is to encourage companies to have a robust and consistent process to use modeling tools responsibly.

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February 10th, 2016

Meeting the Challenges: Rating Agency Advisory

Posted at 1:00 AM ET

In realizing the goal of profitable growth, (re)insurers require a trusted partner to help them manage a rapidly evolving regulatory and rating agency environment.

Rating Agency Advisory

Ratings are a key indicator for many insurers and (re)insurance buyers. Amid evolving rating agency concerns and the complexity of enterprise risk management (ERM) requirements, Guy Carpenter Strategic Advisory provides clarity. We help clients take a proactive approach to enhance risk-adjusted capitalization, build up ERM, improve communications with rating agencies and optimize rating outcomes.

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February 8th, 2016

Rating Agency Developments, Part II; Europe and Asia Pacific

Posted at 1:00 AM ET

Europe

In anticipation of the January 2016 rollout, the European insurance industry focused squarely on Solvency II. Rating agencies refrained from instituting any new criteria.

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February 4th, 2016

Rating Agency Developments

Posted at 1:00 AM ET

There is a great deal of overlap between the requirements of government regulators and credit rating agencies. The difference, however, is in the objectives of those requirements, with regulators focused on solvency and ability to trade, or not, and the rating agencies taking it a step further to opine on relative financial strength. Regulatory solvency approval can be viewed as a “qualifier” or minimum standard required to be considered by a customer. A credit rating, on the other hand, can act as a “differentiator” to distribution channels and insurance buyers ultimately leading to greater potential sales opportunities.

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November 4th, 2015

Cyber Risks: Aggregation, Part I

Posted at 1:00 AM ET

Businesses and (re)insurers should be concerned by risk aggregation, given the possibility of single attacks leading to losses across a large number of firms, which can create counter-party risk for the insured and potential failure for the insurer. At the moment, a large systemic event has not materialized, but that does not mean that the risk is not present.

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