Posts Tagged ‘Week in Review’



February 22nd, 2019

Week’s Top Stories: February 16 - 22, 2019

Posted at 10:00 AM ET

Sidecars: Capitalizing on Market Cycles to Improve Client Solutions: Following U.S. hurricanes Katrina, Rita and Wilma in 2005 and the ensuing “hard” property catastrophe reinsurance market, reinsurers and investors increasingly started turning to sidecar insurance linked securities to access new and replacement capacity.

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Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Read the article >>

Risk Financing Strategies Needed as Exposure to Flood Increases: The affordability of flood resilience will become an increasingly critical issue as rising sea levels and urbanization expose a growing number of people and population centers to floods, says the World Economic Forum’s Global Risk Report 2019.

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Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Cybersecurity, Strategic and Financial Risks to Dominate Risk Landscape: According to nearly 400 treasury professionals surveyed, strategic and financial risks, along with cybersecurity, will dominate the risk landscape for the next 18-36 months.

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And, you may have missed …

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus  “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of ”silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>

Click here to register to receive e-mail updates >>

February 15th, 2019

Week’s Top Stories: February 9 - 15, 2019

Posted at 10:00 AM ET

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Cybersecurity, Strategic and Financial Risks to Dominate Risk Landscape: According to nearly 400 treasury professionals surveyed, strategic and financial risks, along with cybersecurity, will dominate the risk landscape for the next 18-36 months.

Read the article >>

Building for Resilience: How to Avoid a Catastrophe Model Failure: Since commercial catastrophe (CAT) models were first introduced in the 1980s, they have evolved as new scientific discoveries and claims insights emerged. Despite the sophisticated nature of each new generation of CAT models, occasionally a model misses a significant loss driver for a particular peril. This occurs when a previously hidden attribute reveals itself through unprecedented intensity. Lessons from such surprises stimulate model improvements as our understanding of the physics of the peril and its damage potential, increase. Through this process, models mature over time.

Read the article >>

IoT Devices Increase Security Incident Risks: Industrial control systems, smart buildings and homes, pacemakers, cameras, and even fish tanks - all of these Internet of Things (IoT) products have been hacked by cyber-attackers looking to disrupt networks and extort money from users, says the report The US Financial and Professional Lines Market in 2019: Our Top 10 List by Guy Carpenter’s affiliate company, Marsh.

Read the article >>

Automobile Liability Segment Outlook: In 2017, writers of automobile (auto) liability insurance continued to cope with deteriorating combined ratios, which remained above 100 percent for the seventh consecutive year. While carriers have implemented effective strategies that improved their operations and as a result are achieving improved expense ratios, evolving market and environment factors continue to challenge auto insurers. Consequently, improved expense ratios and premium increases did not rise as rapidly as claims and losses. The outlook for the sector remains negative.

Read the article >>


And, you may have missed …

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

Click here to register to receive e-mail updates >>

February 8th, 2019

Week’s Top Stories: February 2 - 8, 2019

Posted at 10:00 AM ET

Automobile Liability Segment Outlook: In 2017, writers of automobile (auto) liability insurance continued to cope with deteriorating combined ratios, which remained above 100 percent for the seventh consecutive year. While carriers have implemented effective strategies that improved their operations and as a result are achieving improved expense ratios, evolving market and environment factors continue to challenge auto insurers. Consequently, improved expense ratios and premium increases did not rise as rapidly as claims and losses. The outlook for the sector remains negative.

Read the article >>

Engaging the Workforce in Digital Transformation: A New Model to Enable Your Digital Strategy: For an organization to succeed in adopting technological solutions they must find ways to engage their workforce in the digital transformation or they will fall behind their competitors.

Read the article >>

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

Environmental Disasters Leading to Increased Disruption to Supply-Chains: As environmental risks crystallize with increasing frequency and severity, the impact on global value chains is likely to intensify, weakening overall resilience, according to Global Risks Report 2019, which was produced by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

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Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>


And, you may have missed …

Blockchain Today: A Young Technology That Could Change Everything: Today, blockchain technology is about where the Internet was in the early 1990s. It’s an exciting and important technology but one that is still in its fledgling stage. The truth is, similar to how people were trying to figure out the Internet in the early 1990s, no one really knows exactly how it will revolutionize economies and cultures. But we do know—much like the Internet in the early 1990s—that blockchain is going to be a game changer.

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February 1st, 2019

Week’s Top Stories: January 26 - February 1, 2019

Posted at 10:00 AM ET

The Evolving Directors and Officers Market: In the third quarter of 2018, primary and total program pricing for directors and officers (D&O) liability insurance increased for the third consecutive quarter, indicates the report, The US Financial and Professional Lines Market in 2019: Our Top 10 List, produced by Guy Carpenter’s affiliate, Marsh.

Read the article >>

Blockchain Today: A Young Technology That Could Change Everything: Today, blockchain technology is about where the Internet was in the early 1990s. It’s an exciting and important technology but one that is still in its fledgling stage. The truth is, similar to how people were trying to figure out the Internet in the early 1990s, no one really knows exactly how it will revolutionize economies and cultures. But we do know—much like the Internet in the early 1990s—that blockchain is going to be a game changer.

Read the article >>

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

View the chart >>

Excess and Surplus (E&S) Segment Outlook: The E&S lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat.

Read the article >>

Sydney Hailstorms, December 20, 2018: A severe convective storm affected large parts of New South Wales, including Sydney, the Central Coast and Wollongong from 4:00 to 7:00 pm on December 20, 2018. The storm generated large hail, damaging winds and flash flooding in many areas of the state. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of 8 cm diameter in Berowra Heights in Sydney’s north and similar size hail in Casula and Liverpool in the city’s southwest.

Read the article >>

And, you may have missed …

GC Videocast - Global Risks Report 2019: John Drzik, President of Global Risk and Digital at Guy Carpenter’s sister company, Marsh, explains the key findings and takeaways from The Global Risks Report 2019. The 14th edition of The Global Risks Report is prepared by the World Economic Forum with the support of Guy Carpenter’s parent company, Marsh & McLennan Companies.

Watch the video >>

Click here to register to receive e-mail updates >>

January 25th, 2019

Week’s Top Stories: January 19 - 25, 2019

Posted at 10:00 AM ET

Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2019.

See the chart >>

Guy Carpenter Announces New Division and Senior Appointments Designed to Deliver Enhanced Client Value: Guy Carpenter today announced the formation of a new Global Capital Solutions Group and a series of new leadership appointments related to the Jardine Lloyd Thompson Group plc (JLT) acquisition. These appointments will become effective upon closing of the transaction between Guy Carpenter’s parent company, Marsh & McLennan Companies, and JLT, which remains subject to the receipt of certain antitrust and financial regulatory approvals.

Read the article >>

Excess and Surplus (E&S) Segment Outlook: The E&S lines segment of the insurance industry is an essential market for risks for which typically the standard insurance market does not offer coverage. The E&S market as a whole remained somewhat consistent and disciplined with its pricing and risk selection, with the first half of 2017 being very similar to 2016. Both primary and excess casualty rates were flat to up 5 to 10 percent depending on the line of business (LOB) and class. Specific areas, such as New York Construction and Transportation experienced double digit rate increases. Professional lines rates were overall flat.

Read the article >>

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

WEF Global Risks Report: Heightened Geopolitical and Geoeconomic Tensions: Profound political, economic, societal, technological and environmental transformations are occurring at an unprecedented scale and pace and have become a part of day-to-day business life, according to the 14th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and other partners.

Read the article >>

And, you may have missed …

Top Financial and Professional Lines Risks in 2019: The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh.

Read the article >>

Click here to register to receive e-mail updates >>

January 18th, 2019

Week’s Top Stories: January 12 - 18, 2019

Posted at 10:00 AM ET

Reinsurance Rate Movement Limited at January 1 Despite Uncertainty over Pricing Adequacy and Available Capital: The overall impact of catastrophe losses on property rates was muted at the January 1, 2019 reinsurance renewals, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy and the amount of capital available, says Guy Carpenter.

Read the article >>

Balance Sheet Expansion: Opportunities and Challenges: From 2014 to 2017, the property and casualty (P&C) industry in the United States grew its collective capital position from USD 686 billion to USD 767 billion, a 3.8 percent compound annual growth rate. This expansion in capital was achieved during a period when the normalized return profile of the P&C underwriting business was considered to be below the cost of capital. The growth of industry capital during this period of subpar underwriting returns provides insights into the expectations for carriers’ opportunities and challenges through 2018 and into the years ahead.

Read the article >>

Top Financial and Professional Lines Risks in 2019: The U.S. market for financial and professional insurance coverage saw a number of challenges in 2018, including new privacy regulations, an increase in workplace sexual harassment claims as the #MeToo movement continued to gain traction, and more securities litigation activity, says a report by Guy Carpenter’s sister company, Marsh.

Read the article >>

Global Risks Report: Heightened Geopolitical and Geoeconomic Tensions: Profound political, economic, societal, technological and environmental transformations are occurring at an unprecedented scale and pace and have become a part of day-to-day business life, according to the 14th edition of The Global Risks Report, prepared by the World Economic Forum (WEF) with the support of Marsh & McLennan Companies and other partners.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>


And, you may have missed …

Taiwan: Catastrophe Insurance and Gap in Coverage: Taiwan has experienced a series of extreme weather events in recent years, which are expected to continue into the future, says the report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

Click here to register to receive e-mail updates >>

January 11th, 2019

Week’s Top Stories: January 5 - 11, 2019

Posted at 10:00 AM ET

Taiwan: Catastrophe Insurance and Gap in Coverage: Taiwan has experienced a series of extreme weather events in recent years, which are expected to continue into the future, says the report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

Sydney Hailstorms, December 20, 2018: A severe convective storm affected large parts of New South Wales, including Sydney, the Central Coast and Wollongong from 4:00 to 7:00 pm on December 20, 2018. The storm generated large hail, damaging winds and flash flooding in many areas of the state. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of 8 cm diameter in Berowra Heights in Sydney’s north and similar size hail in Casula and Liverpool in the city’s southwest.  The Nattai National Park west of Picton also experienced large hail. Initial damage reports indicated that the suburbs of Berowra Heights, Hornsby, Liverpool, Gosford and Lithgow were the most severely affected. Given that the event occurred during the Christmas holidays, many residents and businesses have not fully assessed the extent of damages; therefore, loss estimates are expected to increase in the next few weeks.

Read the article >>

Balance Sheet Expansion: Opportunities and Challenges: From 2014 to 2017, the property and casualty (P&C) industry in the United States grew its collective capital position from USD 686 billion to USD 767 billion, a 3.8 percent compound annual growth rate. This expansion in capital was achieved during a period when the normalized return profile of the P&C underwriting business was considered to be below the cost of capital. The growth of industry capital during this period of subpar underwriting returns provides insights into the expectations for carriers’ opportunities and challenges through 2018 and into the years ahead.

Read the article >>

A Math Formula May Offer a Solution to Insurers’ Critical Challenges: Guy Carpenter has developed a methodology that applies a mathematical formula to provide insurers and reinsurers with a unified, practical framework for risk pricing and capital allocation.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>

And, you may have missed …

Cyberattacks Top Risk to Doing Business in India: A growing dependency on data and digitization efforts have increased the risks of cyberattacks in India, says the report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

Click here to register to receive e-mail updates >>

January 4th, 2019

Week’s Top Stories: December 29, 2018 - January 4, 2019

Posted at 10:00 AM ET

Sydney Hailstorms, December 20, 2018: A severe convective storm affected large parts of New South Wales, including Sydney, the Central Coast and Wollongong from 4:00 to 7:00 pm on December 20, 2018. The storm generated large hail, damaging winds and flash flooding in many areas of the state. According to the Australian Bureau of Meteorology (BOM), there were ground reports of hail of 8 cm diameter in Berowra Heights in Sydney’s north and similar size hail in Casula and Liverpool in the city’s southwest.  The Nattai National Park west of Picton also experienced large hail. Initial damage reports indicated that the suburbs of Berowra Heights, Hornsby, Liverpool, Gosford and Lithgow were the most severely affected. Given that the event occurred during the Christmas holidays, many residents and businesses have not fully assessed the extent of damages; therefore, loss estimates are expected to increase in the next few weeks.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>

Marsh & McLennan Companies Climate Resilience Microsite: Extreme weather events, shifting regulations, evolving competition and increased actions by investors are just some of the challenges facing organizations - all driven by a growing focus on climate change.

Read the article >>

Catastrophe Insurance Gap in China: Even though China is the fastest growing insurance market in the world, the country’s catastrophe insurance protection gap remains significant, according to the recent report 14 Shades of Risk in Asia-Pacific: Evolving Risk Concerns by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

Cyberattacks Top Risk to Doing Business in India: A growing dependency on data and digitization efforts have increased the risks of cyberattacks in India, says the report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

And, you may have missed …

GC Capital Ideas: CAT-i Stories: Fourth Quarter 2018: Here is a look back at the CAT-i articles from October 1 through December.

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December 28th, 2018

Week’s Top Stories: December 22 - 28, 2018

Posted at 10:00 AM ET

Affirmative versus Silent Cyber: An Overview: While the current debate over “affirmative” versus “non-affirmative” coverage has been ongoing for a few years, WannaCry and Petya/NotPetya cyberattacks helped make the issue of ”silent cyber” more critical. These two 2017 cyberattacks effectively shifted the conversation from data breach, notification costs and third-party liability to first-party liability insuring agreements due to the extent and expanse of the systematic, large-scale damages they triggered.

Read the article >>

Report: New Zealand’s Agriculture Lacking Risk Mitigation Measures: New Zealand’s vulnerability to climate-related risks such as extreme weather events is rising due to rapid urbanization and an increase in the frequency and severity of these events, according to the recent report 14 Shades of Risk In Asia-Pacific: Evolving Risk Concerns in Asia-Pacific by Marsh & McLennan Companies’ Asia-Pacific Risk Center.

Read the article >>

GC Capital Ideas: CAT-i Stories: Fourth Quarter 2018: Here is a look back at the CAT-i articles from October 1 through December.

Read the article >>

The Dangers Lurking in the Union between Construction and Emerging Tech: Technology startups geared toward the construction industry are booming. Contractors are adopting wearable tech to prevent and mitigate worker injuries and using 3D printing technologies for building components. The industry has seen a proliferation of building information modeling to foster digital collaboration between architects, engineers and contractors.

Read the article >>

Cost of Capital and its Use in Valuing Reinsurance: Increasingly, reinsurance is seen as an important element of capital management. Reinsurance decisions are moving away from the reinsurance buyer and towards the finance teams. These teams need to find a way of comparing reinsurance in a straightforward way. Defining the cost of capital for reinsurance means that it can be compared with other capital sources.

Read the article>>

And, you may have missed …

Global Insurance Prices Rise for Fourth Consecutive Quarter: Trends in property and financial and professional lines of coverage drove average commercial insurance prices higher for the fourth consecutive quarter, according to the most recent Marsh Global Insurance Market Index. Global commercial insurance prices tracked in the index rose, on average, more than one percentage point in the third quarter of 2018.

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