Posts Tagged ‘solvency’



March 18th, 2019

Climate Change Has Claimed Its Biggest Corporate Victim; Now Banks Are on Alert

Posted at 1:00 AM ET

Rob Bailey, Director of Climate Resilience at Marsh & McLennan Insights

Contact

When PG&E filed for Chapter 11 protection in January, The Wall Street Journal dubbed it the “first climate change bankruptcy.” The California power utility was facing USD 30 billion in potential liabilities following a series of devastating wildfires linked to its equipment — wildfires made more likely by a prolonged period of hot, dry weather that had reduced the surrounding forests to tinder and which scientists have since attributed to climate change.

Continue reading…

October 21st, 2018

Pushing the Model Boundaries - GC@BB Commentary

Posted at 1:00 AM ET

cox_andrew_bio2eddy-vanbeneden-small1till-wagner-final1Andrew Cox, Managing Director, GC Strategic Advisory; Eddy Vanbeneden, Managing Director, Head of GC Analytics, Continental Europe; Till Wagner, Senior Vice President, GC Strategic Advisory Contact

  • Companies keen to expand internal capital model remit
  • Multiple factors hindering ability to integrate into broader strategic framework
  • New technologies support rapid model evolution and increased data resolution

Continue reading…

September 13th, 2018

Managing Catastrophe Model Change

Posted at 1:00 AM ET

powers_imelda_71x88Imelda Powers, Senior Cat Management Advisor, Asia Pacific, Global Strategic Advisory

Contact

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. Continue reading…

February 27th, 2017

Managing Volatility Key To Solvency II Transition: Part II

Posted at 1:00 AM ET

paire-eric-sm1Eric Paire, Head of Global Partners & Strategic Advisory, EMEA

Contact

“To remain competitive, smaller companies simply cannot afford to operate at 200 percent. This volatility on multiple fronts means that establishing the solvency level that will provide a sufficiently robust capital buffer to withstand these fluctuations is extremely difficult. Is it 130 percent, 150 percent, 170 percent or higher?” notes Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter.

Continue reading…

February 23rd, 2017

Managing Volatility Key To Solvency II Transition: Part I

Posted at 1:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

Contact

Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

Continue reading…

February 14th, 2017

Chart: Solvency II Ratios as of End of H1 2016

Posted at 1:00 AM ET

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.

Continue reading…

November 17th, 2016

Reserving and Capital Setting: The Crystalization of Emerging Risks, Part I

Posted at 1:00 AM ET

As discussed in the Executive Summary of this report, the term “crystalization of risk” refers to the timescale over which we realize that the risk is manifesting itself and how this view changes until ultimate understanding of quantum is reached and all liabilities are discharged. The “Reserving Risks” section in last year’s report, Ahead of the Curve: Understanding Emerging Risks looked at how information emerges in the presence of reserving cycles. The profit or loss in any particular financial year is made up of not only the profit or loss from the same accident year but also any recognized changes in the reserves on prior years.

Continue reading…

September 12th, 2016

Managing Volatility Key To Solvency II Transition - GC@MC Commentary

Posted at 12:00 AM ET

paire-eric-smEric Paire, Head of Global Partners & Strategic Advisory, EMEA

Contact

Movement Within Capital Ratios Leading to Uncertainty Amongst Mid-Size Companies

The impact of the Solvency II capital ratio on composite life and property/casualty balance sheets is proving more substantial than some companies initially expected, according to Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter. This development is due to the double impact of market volatility and volatility within the solvency ratio itself.

Continue reading…

July 7th, 2016

Changes to Best’s Capital Adequacy Ratio (BCAR)

Posted at 1:00 AM ET

Here we review recent GC Capital Ideas posts on developing changes to Best’s Capital Adequacy Ratio (BCAR) and the potential impact of those changes on (re)insurers.

Continue reading…