Posts Tagged ‘Reinsurance’



May 3rd, 2016

Public Entities Approach to Risk Financing

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on some of the drivers behind public entities considering new approaches to risk financing.

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April 28th, 2016

Emerging Risks: Modeling Considerations Moving Forward

Posted at 1:00 AM ET

william-garland-sm3Will Garland, Managing Director

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Technological progress is accelerating at a rapid pace and with it are the risks and opportunities that accompany those changes in many different segments of our economy:

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April 27th, 2016

China’s Insurance Regulatory System

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Here we review recent GC Capital Ideas posts on developments in China’s insurance regulatory system. 

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April 26th, 2016

Emerging Risks: New Product Development

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Here we review recent GC Capital Ideas posts on new product development as an emerging risk.

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April 25th, 2016

Transferring Public-Held Risk to the Private Sector Markets

Posted at 1:00 AM ET

jonathan_clark-sm1christopher-sykes-smJonathan Clark and Christopher Sykes, Managing Directors

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Fiscal constraints are increasing across many developed and emerging economies amid growing catastrophic loss potential brought on by the geopolitical climate, demographic trends and global climate change. As a result, heads of government, international trade organizations and private sector risk bearers are increasing their calls to reexamine the roles and responsibilities of society to better manage these complicated risks.

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April 19th, 2016

Public Sector Risk: Conclusion

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We have seen significant growth in public sector entities transferring risk to the reinsurance market utilizing traditional risk transfer structures and alternative risk transfer structures such as collateralized reinsurance and catastrophe bonds.

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April 11th, 2016

US Residual Markets, Part II

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The recent 2015 reinsurance renewals in this area demonstrated further expansion in the manner and means by which these insurance providers utilize private-sector capital to support their businesses. Traditional reinsurance remains a core component of most residual market risk financing programs. Typically these risk financing plans will also rely on retained profit, assessments and debt facilities in concert with the various forms of reinsurance to manage their exposures. The utilization of alternative risk financing capital through catastrophe bonds and/or collateralized reinsurance continues to grow with eight of 12 facilities that utilize traditional reinsurance also accessing risk transfer capacity through catastrophe bonds and/or collateralized reinsurance to help manage their loss exposures. The chart below details the increasingly diverse set of risk financing approaches employed by 11 coastal markets.

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April 7th, 2016

US Residual Markets, Part I

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The US residual property insurance market segment is comprised of Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans and two state run insurance companies - Florida Citizens Property Insurance Company (Florida Citizens) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). These insurance facilities grew out of the civil strife in the 1960s to ensure continued access to insurance in urban areas. Over time they have evolved and their mandate has grown beyond their urban focus. Today these facilities are significant providers of some of the most wind- and earthquake-exposed property insurance in the country.

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April 6th, 2016

GC Capital Ideas Top Chart Room Entries: First 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 first quarter of 2016:

 

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

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2. Regional Property Catastrophe ROL Index, 1990 to 2016: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.

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3. Top Ten Catastrophe Bond Transactions for 2015: The table lists the top ten catastrophe bond transactions that were completed in 2015.

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4. Catastrophe Bond Issuance and Capital Outstanding - 1998 to YE 2015: The chart below presents catastrophe bond issuance through 2015. Total bond issuance for the year 2015 was the fourth highest historically.

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5. Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit: The chart below presents alternative capital capacity as a percentage of global property catastrophe reinsurance limit from 2008 to year-end 2015.

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March 31st, 2016

Evolution of Risk Capital

Posted at 1:00 AM ET

The continued flow of new capital into the (re)insurance industry constitutes the largest change to the sector’s capital structure in recent memory. New capital has entered the market through investments in insurance-linked securities (ILS) funds, sidecars, hedge fund-backed reinsurance companies and collateralized reinsurance vehicles. Investors have increasingly been attracted to low correlation returns from catastrophe risk relative to traditional capital markets risks and the attractive yield for the measured (re)insurance risk relative to other investments, particularly in the current low inflation, low yield era.

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