Posts Tagged ‘Reinsurance’



May 21st, 2019

What Is the Future of Alternatives to Traditional Insurance Markets?

Posted at 1:00 AM ET

Brian C. Elowe, Chief Client Officer for Marsh North America

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There’s been much discussion in risk finance circles over the past decade about alternatives to traditional insurance markets. Much of the focus has been on the provider side - the pension funds, sovereign wealth funds and other investors that provide the capital behind so-called alternative risk transfer (ART) solutions.

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May 9th, 2019

A Dynamic Approach to Managing Life Reinsurance Arrangements: Part II; Treaty Design and Implementation

Posted at 1:00 AM ET

Matthew Rose, Managing Director; Justin Ward, Senior Vice President; and Victor Hai, Senior Vice President

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Many treaties were created at the earlier stages of product development with a value proposition whereby the reinsurer co-developed the product, pricing and features. As the relationships with reinsurance partner(s) change over time, the ability to adjust the terms of the relationship may be limited and in many cases an imbalance in the partnership emerges.

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May 8th, 2019

A Dynamic Approach to Managing Life Reinsurance Arrangements: Part I

Posted at 1:00 AM ET

Matthew Rose, Managing Director; Justin Ward, Senior Vice President; and Victor Hai, Senior Vice President

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The traditional life reinsurance model typically involves perpetual treaties linked to an underlying product. In order to create alignment between the contracting parties, the treaty would follow the underlying terms of the product. However, the treaty structure may concurrently include provisions that reduce alignment between the insurer and reinsurer, to the insurer’s detriment. This approach is often wrapped in the reinsurer’s “value proposition” - providing services to support the pricing, underwriting and claims management of the underlying product.

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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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April 11th, 2019

Sidecars: Capitalizing on Market Cycles to Improve Client Solutions

Posted at 1:00 AM ET

sweitzer_geoff_newphoto

Geoffrey Sweitzer, Managing Director, GC Securities*

Following U.S. hurricanes Katrina, Rita and Wilma in 2005 and the ensuing “hard” property catastrophe reinsurance market, reinsurers and investors increasingly started turning to sidecar insurance linked securities to access new and replacement capacity.

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April 10th, 2019

Healthcare & Cyber Risk – Takeaways

Posted at 1:00 AM ET

Here are the five key takeaways from the study Holding Healthcare to Ransom by Marsh & McLennan Companies Insights.

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April 8th, 2019

Amid Regulatory Scrutiny Financial Institutions Must Monitor Third-Party Cyber Risk

Posted at 1:00 AM ET

cyber-handbook-cover-image-smallCybersecurity ranks among the top concerns for banks, insurers, and other financial institutions, which can represent prime targets for cyber-attackers and be vulnerable to potential disruptions because of their often-complex technology systems and the valuable financial assets and rich customer data they can hold.

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February 26th, 2019

First Singapore Catastrophe Bond Sets Stage for ILS Expansion in Asia-Pacific

Posted at 8:15 PM ET

The first catastrophe bond has been issued out of Singapore. This highlights the potential of the insurance- linked securities (ILS) market in the region, and is aligned with the city-state’s efforts to establish itself as a global hub for Asian risk transfer. The bond is sponsored by Insurance Australia Group (IAG) as part of its 2019 catastrophe aggregate reinsurance cover and represents the first such transaction by the company.

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