Here we highlight recent GC Capital Ideas Chart Room entries highlighting Guy Carpenter’s Rate on Line (ROL) Index at the 2015 renewal.
Posts Tagged ‘US’
Guy Carpenter today released its annual Global Catastrophe Review, which reports that insured losses in 2014 were at the lowest level seen since 2009. According to the report, significant insured losses in 2014 totaled approximately USD33 billion, a dramatic drop when compared to the historic insured losses seen in 2011, which totaled approximately USD126 billion.
Capital markets capacity continues to innovate as highlighted by the recent issuance of a catastrophe bond by the MTA . This issue, MetroCat, which came to market in July 2013, demonstrated the willingness of capital markets investors to assume storm surge and flood risk from named storms in a cost effective manner.
The intense coastal storm is now clearing Atlantic Canada and steadily weakening. Blizzard and winter storm warnings have been discontinued, although winter weather advisories remain for select areas of New England. This storm lived up to expectations as an intense, impactful, and historic coastal storm, despite challenges on the forecast track and the especially sharp edge of the snow shield. Blizzard conditions with snowfall amounts of two to three feet affected a widespread area of New England and wind gusts exceeded hurricane force in some areas. The strong winds also produced a storm surge with greatest severity to coastal Massachusetts.
A deep coastal storm formed off the Outer Banks on January 26, 2015 and moved northward to impact many areas of the U.S. Northeast and Atlantic Canada. Blizzard warnings remain active from Rhode Island to Atlantic Canada, according to The National Weather Service (NWS) and Meteorological Service of Canada (MSC). Snowfall rates as high as two to three inches per hour, together with strong winds continue to restrict visibility and impose dangerous travel conditions. Conditions should improve for Boston this afternoon into the evening, and gradually clear from south to north over the next 24 hours or so.
The use of capital markets-based risk transfer capacity by public entities, insurers of last resort, and compulsory catastrophe pools and disaster facilities continues to expand. These deals included Turkey’s Turkish Catastrophe Insurance Pool, Mexico’s FONDEN and New Zealand’s EQC. Most large U.S. insurers of last resort, such as CEA, Citizens (FL), Citizens (LA), North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (NCJUA/NCIUA), and Texas Windstorm Insurance Association, are utilizing capital markets capacity including collateralized reinsurance and catastrophe bonds.
This two part table compares the expired Terrorism Risk Insurance Program Reauthorization Act of 2007 with the 2015 TRIPRA legislation that was signed into law on Monday, January 12, 2015.
Marsh & McLennan Companies applauds the new Congress for its swift reauthorization of this critically important public-private partnership, which will help to ensure a reliable marketplace for terrorism coverage in the event of attack. We are pleased that TRIPRA directs the Treasury Department to review the protocols for certification which would help to protect the nation’s economic security in the event of a terrorist attack.
Guy Carpenter reports reinsurance pricing fell at the January 1, 2015 renewals in many segments, affecting almost all lines of business and geographies, continuing recent renewal trends.