Posts Tagged ‘Ratings’



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

Continue reading…

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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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 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 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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