Posts Tagged ‘risk management’



May 19th, 2015

Emerging Risk Challenges And Opportunities

Posted at 1:00 AM ET

A cursory reading of just a few of the publications on the topic of emerging risks quickly resembles a crash-course in risk aversion therapy. We have been subjected to a bewildering and ever lengthening series of lists of emerging risks. Swiss Re recently identified 26 such risks (1), Hannover Re has an ongoing list of 14 while the World Economic Forum in its Global Risks 2014 (2) lists 31 global risks (3).

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May 18th, 2015

GC Capital Ideas Videocasts

Posted at 1:00 AM ET

A key feature of GC Capital Ideas is its Videocast series. Here we review recent video posts: 

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May 14th, 2015

Affordable Care Act: Health Insurers Addressing the Need to Develop New Strategies

Posted at 1:00 AM ET

barker-smallPhillip Barker, Senior Vice President

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It has been a little over four years since the enactment and subsequent implementation of the Patient Protection and Affordable Care Act, more widely known as the ACA. The impact on the insurance industry as a whole has been tremendous, but it has not been shared equally among the industry subsectors. While the property/casualty (P&C) industry was not exactly spared, receiving a comparatively “light touch,” the ACA has been a catalyst helping create a transformational bridge between the P&C and the health insurance industries.

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April 30th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part III

Posted at 1:00 AM ET

matt-day-headshot-sm7ross-milburn-pic-128x149small2Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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What About Volatility?

Insurers understand volatility in respect of their insurance and investment risk and reinsurance can play a significant role in controlling this. However, another form of volatility exists in respect of the pricing and availability of reinsurance and sub debt. To counter this clients are encouraged to consider multi-year reinsurance transactions, retroactive solutions and to explore sub debt issuance that by nature is long term. By staggering the end-dates of different transactions, a natural hedge against rising rates on line and debt market spreads can be created.

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April 29th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part II

Posted at 1:00 AM ET

matt-day-headshot-sm6ross-milburn-pic-128x149small1Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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Increasing the Permanent Capital Available

Sub debt is an additional part of the capital tool kit available to insurers and can often be used to greater effect as part of a tailored solution than in isolation. In conjunction with a risk and/or capital management-based approach to the mitigation of each of the solvency capital requirement (SCR) components, management may consider issuing sub debt to provide growth capital (organic and through acquisition) as well as make a longer term contribution to SCR coverage.

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April 28th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part I

Posted at 1:00 AM ET

matt-day-headshot-sm5ross-milburn-pic-128x149smallMatthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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In recent months a number of market commentators have opined on the merits of proportional reinsurance versus subordinated debt (sub debt), some favoring reinsurance solutions and some favoring sub debt, but generally finding results in line with the products their companies offered. Guy Carpenter feels reinsurance or sub debt alone is unlikely to provide the best solution to meet solvency capital requirements. Instead, a blended approach should be considered.

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April 19th, 2015

Guy Carpenter Launches New Public Sector Specialty Practice

Posted at 11:30 PM ET

Guy Carpenter today announced the launch of the Public Sector Specialty Practice. This global team is focused exclusively on the unique risk management needs of governmental agencies and entities.

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March 19th, 2015

Modeling Beyond Property CAT Risk

Posted at 1:00 AM ET

Here we review recent GC Capital Idea stories on catastrophe models that focus on exposures beyond catastrophe property risk:

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March 17th, 2015

Parametric CAT Derivatives to “Build Back Better”

Posted at 1:00 AM ET

franco_guillermo_bioGuillermo Franco, Head of Catastrophe Risk Research - EMEA

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Destruction caused by catastrophes often unfolds due to inadequate construction practices or land use planning. The likely response to these events is to strive to “build back better,” in part by addressing the mistakes of the past. Unfortunately, communities that embrace this challenge often find that they lack the financial resources for it and ambitious reconstruction projects lose momentum.

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March 16th, 2015

The Insurance Risk Benchmarks Research: Insights for the Industry and the E&S Market

Posted at 1:00 AM ET

woolstenhulme_micah_photo-smallMicah Woolstenhulme, Manager, ERM Services, Strategic Advisory

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The Insurance Risk Benchmarks Research is an ongoing project sponsored by Guy Carpenter & Company and Oliver Wyman to assist property/casualty (P&C) companies with profiling enterprise risk. Articulating an individual company’s risk profile requires assessment of both absolute and relative financial uncertainties. The absolute uncertainties can ultimately be codified in an economic capital model, but robust review of relative historical performance invariably improves the codification of certain systemic risks.

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