Posts Tagged ‘reinsurance rates’



June 9th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

Contact

“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

Continue reading…

February 13th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

Contact

“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

Continue reading…

November 2nd, 2016

Asia Pacific Catastrophe Report 2016: Executive Summary

Posted at 1:00 AM ET

bromo-volcano-east-java-indonesia-smIn the Asia Pacific region, purchases in original currency terms of total catastrophe treaty reinsurance limit grew year on year. Increased purchase in Japan largely drove the growth, with lesser growth experienced in India and China. Changes in pro rata arrangements at some Australian cedents reduced the overall catastrophe excess of loss requirements from Australia; these movements were not large enough to push the overall region-wide purchase backwards.

Continue reading…

October 10th, 2016

GC Capital Ideas Top Chart Room Entries: Third Quarter, 2016

Posted at 1:00 AM ET

From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the third quarter of 2016:

Continue reading…

September 9th, 2016

Reinsurers Standing Firm As Insurers Look To Consolidate – GC@MC Commentary

Posted at 3:00 AM ET

frankland-nick-smchris-klein-sm1Nick Frankland, CEO, EMEA Operations and Chris Klein, Head of EMEA Strategy Management

Contact

Recent Renewals Show Evidence of Changing State of Reinsurance Market

As large-scale multi-line insurers enter a period of consolidation following the significant drive to rationalize long-term strategic reinsurance purchasing, recent renewal activity suggests reinsurers are now increasingly resisting shorter-term aggressive buying strategies, according to Nick Frankland, CEO of EMEA Operations and Chris Klein, Head of EMEA Strategy Management at Guy Carpenter.

Continue reading…

August 31st, 2016

Rates That Reflect Risk

Posted at 1:00 AM ET

Insurance marketplaces that are stable and viable in the long-term succeed when insurers offer policies and coverages at premium rates that are appropriate and are subject to the requirements and standards of not being excessive, inadequate or unfairly discriminatory. At the same time, premium rates should be balanced and take past and prospective loss and expense experience into consideration. When these factors are not successfully accomplished, a public sector solution often emerges.

Continue reading…

August 22nd, 2016

Chart: Evolution of Market Price, Capacity, Limit for Terror Pools

Posted at 1:00 AM ET

Chart shows the evolution of international reinsurance market price, capacity and limit for terror pools from 2009 to 2014.

Continue reading…

August 18th, 2016

GC Capital Ideas Top Chart Room Entries: First Half, 2016

Posted at 1:00 AM ET

From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the first half of 2016:

Continue reading…

May 26th, 2016

Chart: Regional Property Catastrophe ROL Index, 1990 to 2016

Posted at 1:00 AM ET

The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

Continue reading…

May 25th, 2016

Chart: Global Property Catastrophe ROL Index 1990 to 2016

Posted at 1:00 AM ET

The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2016.

Continue reading…