Posts Tagged ‘Ratings’



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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April 18th, 2019

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

Posted at 1:00 AM ET

fleming_jeffJeff Fleming, Managing Director

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Insurers face challenges in managing underwriting, capital protection, risk and risk profiling as they navigate underwriting guidelines based on their gross and net risk underwriting appetite. Against these challenges, companies utilize various forms of reinsurance, traditionally facultative or treaty, to buy risk protection, shore up capital and satisfy rating agencies, according to Jeff Fleming, Managing Director, Guy Carpenter.

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October 28th, 2018

Facultative or Treaty and Why the Need for Hybrid Solutions - GC@PCI Commentary

Posted at 1:00 AM ET

fleming_jeffJeff Fleming, Managing Director

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  • Facultative and treaty reinsurance offer a host of benefits, but each can be burdened with inflexibilities that limits the utility
  • A reinsurance solution that draws on fac and treaty enables insurers to purchase cover that meets unique needs of their profiles
  • GC Hybrid Solutions(SM), with fixed pricing and set capacity, frees cedents from administrative burdens of fac and provides protection for unexpected events

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July 31st, 2018

TRIPRA: The Need to Ease Rating Agencies and Regulators’ Concerns

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2In 2018, the minimum industry trigger for the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) increased to USD 160 million, contributing to continued rating agency concerns. In late 2017, A.M. Best updated its terrorism methodology and fully integrated the peril into its stochastic Best’s Capital Adequacy Ratio (BCAR) Model. Continue reading…

December 4th, 2017

Critical Tool for Making Strategic Enterprise Risk Management Decisions

Posted at 2:43 PM ET

hettinger_cropped-smThomas Hettinger, Managing Director, Strategic Advisory

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  • There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line
  • Companies will be under extra pressure to choose growth strategies carefully because of potential capital pressures from A.M. Best and their potential for low returns due to the extended soft positions of many markets
  • With current capital positions evaluated, robust and current market insight is critical to accurately assess potential growth areas

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November 8th, 2017

Insurers Adapting in a Time of Disruption

Posted at 4:00 AM ET

Here we review recent GC Capital Ideas posts on strategies insurers may utilize to continue to achieve growth in a disruptive environment.

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October 17th, 2017

Integrating Growth and Enterprise Risk Management - GC@PCI Commentary

Posted at 8:30 AM ET

hettinger_cropped-smThomas Hettinger, Managing Director, Strategic Advisory

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  • There are indications that new A.M. Best Stochastic Based BCAR factor assignments may require more capital for companies entering a new line of business than for established writers growing in that line
  • Companies will be under extra pressure to choose growth strategies carefully because of potential capital pressures from A.M. Best and their potential for low returns due to the extended soft positions of many markets
  • With current capital positions evaluated, robust and current market insight is critical to accurately assess potential growth areas

Continue reading…

November 7th, 2016

Technology Innovation Identified as Top Growth Opportunity for (Re)insurance Industry in 2017, According to Guy Carpenter Annual Market Pulse Survey

Posted at 6:15 AM ET

Technology innovation will provide the biggest growth opportunities for (re)insurers in the year ahead, according to a survey released today by Guy Carpenter & Company. Now in its fifth year, the annual survey polled executives from insurance and reinsurance companies during the 2016 Property Casualty Insurers Association of America (PCIAA) Annual Meeting held in Dallas, Texas. The goal of this year’s survey was to identify the top opportunities and threats to profitable growth in the year ahead, as well as examine the most significant disruptive forces impacting the industry.

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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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