From cyber risk to the changing regulatory landscape to increasing liability challenges for directors and officers, risks continue to evolve within the financial and professional liability insurance marketplace. What’s in store in the year ahead? Continue reading…
Posts Tagged ‘risk’
Chart presents (re)insurers’ Solvency II ratios compiled by Guy Carpenter for the first half of 2016. Many companies publish their solvency ratios without being required to do so, and some others actually specify target solvency ratio ranges as part of their risk appetite and financial targets. Solvency ratios are another metric for investors to use when assessing the relative financial strength of companies - and (re)insurance buyers can do the same when assessing counterparty risk.
Public Sector Risk Financing Perspectives – Sharing Visual Intelligence for Disaster Response: Part I
Social and environmental risks have supplanted economic ones as issues of greatest concern among respondents to the Global Risks Perception Survey. The survey was completed by almost 750 members of the World Economic Forum’s global multistakeholder community and the results analyzed in the World Economic Forum 2017 Global Risks Report, which was published by the World Economic Forum with support from Marsh & McLennan Companies and other partners.
Public Sector Risk Financing Perspectives in Asia Pacific: Part II: Highlights of Recent Initiatives
Graham Jones, Senior Vice President
In July 2016, the China Residential Earthquake Insurance Pool (CREIP) was jointly established by the China Insurance Regulatory Commission (CIRC) and Ministry of Finance. In development since 2014, the scheme consists of 45 insurers distributing policies with basic limits of USD 7,500 and USD 3,000 for urban and rural residents, respectively. Coverage up to a maximum limit of USD 150,000 is negotiable. The claims process has been simplified with payouts equaling zero, 50 or 100 percent of the policy limit based on five damage levels.
According to the 2017 Association for Financial Professionals Risk Survey, supported by Marsh & McLennan Companies, 49 percent of finance professionals believe their organizations are exposed to greater earnings uncertainty than they were three years ago.
In addition, 52 percent of Treasury & Finance functions are considering the impact on their organization’s growth expectations due to a geopolitical event. That’s no surprise given that 46 percent say their C-suite and board were concerned about geopolitical risk in 2016.
James Waller, Ph.D, Research Meteorologist
A recent New York Times article titled “Conditions That Form More Hurricanes Also Protect U.S., Study Finds” (1) notes a hurricane “shield” for the U.S. coast during busy hurricane seasons. The article, based on recent research by James Kossin, (2) provides valuable insight, including some notes of caution from other experts in the field, but the observations should be treated with a moment of pause. Some key points to consider:
The Global Risks Report 2017, produced by the World Economic Forum with support from Marsh & McLennan Companies and other partners, was published this week. Now in its twelfth edition, the report provides insights into the key global risks facing businesses as well as the collective view of risk experts in all sectors as to the most significant threats to global prosperity over the next decade. The Global Risks Report 2017 will inform discussions at the World Economic Forum’s annual meeting next week in Davos, Switzerland.
Julia Chu, Managing Director, Guy Carpenter and Ashwin Kashyap, Director of Product Management, Symantec Corporation
Cyber risk is now an embedded feature of the global risk landscape, and preventative risk management and post-event remediation are gaining importance as shareholders, customers, supply chain partners, and regulators are increasingly focused on how companies are managing for cyber risks. Insurance is becoming an important piece of the strategy for helping businesses address these risks.