Posts Tagged ‘Reinsurance’

April 19th, 2018

Cyber Insurance Adoption is Increasing

Posted at 1:00 AM ET

The role of insurance in enhancing cyber resilience is increasingly being recognized by policymakers around the world, and the Organisation of Economic Co-operation and Development is recommending actions to stimulate cyber insurance adoption. Globally, it is expected the level of future demand for cyber insurance will depend on the frequency of high-profile cyber incidents as well as the evolving legislative and regulatory environment for privacy protections in many countries. In India, for example, there was a 50 percent increase in companies buying cybersecurity coverage from 2016 to 2017.

A new report from Marsh & McLennan’s Global Risk Center and WomenCorporateDirectors outlines everything directors need to know to position cyber insurance within a comprehensive risk management framework.

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April 18th, 2018

Reliance on the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA)

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2In 2017, more than 800 insurers wrote USD 215 billion in TRIPRA eligible premium, with a combined policyholder surplus of USD 683 billion. Considering the current 20 percent deductible requirement and policyholder surplus as a filter, Guy Carpenter’s analysis concludes that small to midsize insurers are substantially more vulnerable to the annual increases in the TRIPRA industry trigger and their overall net retentions as a percentage of policyholder surplus.

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April 10th, 2018

2018 Terrorism Risk Insurance Report

Posted at 1:00 AM ET

terrorism-rep-connections-banner-2Although the number of incidents and casualties declined in 2017, terrorism remains a persistent and significant threat to businesses, governments and individuals.

Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, explores the state of the terrorism insurance marketplace, presenting data on purchasing and pricing trends. We also take a look at how the terrorism insurance market continues to innovate and respond to the needs of global organizations in light of an evolving risk landscape.

Reinsurance capacity for terrorism risks continues to develop and grow. Many insurers continue to use the commercial reinsurance markets — at least in part — to buy down their TRIPRA deductibles and buy out their co-shares at acceptable prices, especially for
conventional weapon attacks.

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March 29th, 2018

What the Numbers Reveal about the Current Industry Status. Chapter 2: Insurer Profitability and Retrocession, Part II

Posted at 1:00 AM ET

How have 2017 losses and the last several years of declining rates impacted reinsurer profitability?  Has increasing prevalence of retrocessional reinsurance, now provided primarily by convergence capital providers, had an impact? Part II.

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March 27th, 2018

Reinsurance Market Assessment: What the Numbers Reveal about the Current Industry Status. Chapter 1

Posted at 1:00 AM ET

After several years of light catastrophe activity, particularly in the United States where capital deployment covering catastrophe exposures was heavily impacted by convergence capital, the events of 2017 provided a framework to evaluate how evolving market dynamics over the last few years held up to the real test of losses.

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March 26th, 2018

Cybersecurity Risks on Radar

Posted at 1:00 AM ET

Cybersecurity risks are increasingly being managed as a result of growing use of technology. Organizations’ Treasury and Finance functions are tasked with managing risks resulting from recent technology adoptions. Three-fourths of corporate practitioners report that cybersecurity risks have surfaced at their companies as a result of the increased use of new technologies. Slightly less than half cite operational risk as a concern (47 percent), followed by business continuation (41 percent).

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March 21st, 2018

Chart: The Matrix of Cyber and Property Lines Insurance Coverage

Posted at 1:00 AM ET

Chart examines the policy coverage matrix between cyber and property lines of insurance coverage. Continue reading…

February 20th, 2018

Managing Catastrophe Model Change

Posted at 9:38 AM ET


Incorporating new hazard and claims insights can improve the estimates derived from catastrophe models. By re-analyzing historical events using the latest scientific methods or refining claims with more granular geographical and line of business breakdowns, we can update models with the latest expertise and data. But model changes that yield large swings in loss estimates for frequent events must be carefully scrutinized to understand assumptions and processes in order to truly support ownership of risk.

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February 19th, 2018

Marsh & McLennan Companies Climate Resilience Handbook, 2018

Posted at 1:00 AM ET

Marsh & McLennan Companies has developed a comprehensive framework to help organizations think through all aspects of climate resilience. The 2018 MMC Climate Resilience Handbook provides concise cases that will change the way you think about climate in the context of your organization in three categories of action.