Posts Tagged ‘Week in Review’



June 22nd, 2018

Week’s Top Stories: June 16 - 22, 2018

Posted at 10:00 AM ET

Guide to Cyber Coverage Options: Cyber Risk Management: Response and Recovery, the new report from Marsh & McLennan’s Global Risk Center and WomenCorporateDirectors, includes a Guide to Cyber Coverage Options.

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Better Quantifying Cyber Exposure Will Help Determine Risk Finance Needs: As evidenced by the millions of dollars potentially at stake in a cyber event, financing to help an organization recover from a cyber-attack is more important than ever, with serving insurance a key part of the equation.

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Preparedness to Manage Risks: A majority of organizations are prepared to manage risks as a result of increased use of technology, although a few report being significantly prepared. Although treasury and finance professionals are cognizant that increased use of technology will also increase risk exposure, not all organizations are actively addressing the urgency and criticality of being prepared to manage these risks.

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Captives Offer Access to Capital: Captive owners are seeking options for coverage of terrorism and other high-severity risks. Among other benefits, captive owners gain flexible options to finance emerging and high-severity risks, such as cyber liability, terrorism, and cyber terrorism.

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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 2018.

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Standalone Terrorism Insurance Remains Competitive: Unlike coverage under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which is normally made available within annual “all-risk” property policies, a standalone property terrorism insurance policy does not require the government to certify an act of terrorism in order for a claim to be paid.

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June 15th, 2018

Week’s Top Stories: June 9 - 15, 2018

Posted at 10:00 AM ET

Standalone Terrorism Insurance Remains Competitive: Unlike coverage under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which is normally made available within annual “all-risk” property policies, a standalone property terrorism insurance policy does not require the government to certify an act of terrorism in order for a claim to be paid.

Read the article >>


A Heightened Focus on Cyber Response and Recovery: Over a third of directors of U.S. public companies now discuss cybersecurity at every board meeting. Cyber risks are being driven onto the agenda by high-profile data breaches, distributed denial of services (DDoS) attacks and rising ransomware and cyber extortion attacks. The concern about cyber risks is justified. The annual economic cost of cyber-crime is estimated at USD 1.5 trillion and only about 15 percent of that loss is currently covered by insurance.

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Threat Trends on Major Cyber Attacks in 2017: The Marsh & McLennan Companies Cyber Risk Handbook 2018 is published.

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Getting Practical with Emerging Risks: Widespread political volatility and rapid technological advances are spurring companies to question not just their resilience, but also their fitness for purpose in the new world order. Yet, many companies are unsure what practical steps they should be taking with regard to major strategic uncertainties and potential shocks.

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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 2018.

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Guy Carpenter Licenses First-of-its-Kind Cyber Risk Modeling Platform from CyberCube Following Strategic Alliance: Guy Carpenter today announced that its two year strategic relationship with CyberCube Analytics, formerly part of Symantec Corporation, has produced the industry’s first cyber risk modeling platform with an inside-out view of cyber risk exposure.

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June 8th, 2018

Week’s Top Stories: June 2 - 8, 2018

Posted at 10:02 AM ET

GC Securities Acts as Sole Structurer and Bookrunner on the First Ever Cat Bond Issued Under the New UK Risk Transformation Legislation: *GC Securities, a division of MMC Securities LLC, a U.S. registered broker-dealer and member FINRA/NFA/SIPC, today announced the placement of USD 300,000,000 Series 2018 Principal At-Risk Variable Rate Notes through a newly formed insurance special purpose vehicle domiciled in the United Kingdom, Atlas Capital UK 2018 PLC, to benefit SCOR.

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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 2018.

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Guy Carpenter Extends Capital Markets Expertise with Hire of President and Global Leader, GC Securities, Capital Markets: Guy Carpenter, a leading global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies, today hired Shiv Kumar as President and Global Leader of GC Securities,* Capital Markets. Mr. Kumar was previously Global Head of Insurance Structured Finance at Goldman, Sachs & Co. His 23 years of experience in the (re)insurance sector and capital markets will enhance GC Securities’ ability to identify and execute convergence capital solutions that help clients manage risk.

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Directors Risk Survey Report 2018: Guy Carpenter sister company Marsh has introduced their annual Director Risk Survey Report, done in conjunction with the Institute of Directors. The results reflect changes in the evolving local and global risk landscapes - with cyber, IT, talent attraction and retention and the loss of a key person just some of the risks highlighted.

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Captives’ Future Will Track with Global Risks: What does the future hold for captives? Trends that may alter captive owners’ strategies include tax reform, climate change and emerging technologies.

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And, you may have missed….

Terrorism Risk Modeling Poses Challenges: Terrorism risk modeling methods have been continually updated since leading modeling companies AIR Worldwide and Risk Management Solutions released their first terrorism models in 2002. Quantifying the economic, insured and human losses from terrorist attacks poses major challenges for insurers, reinsurers and alternative capacity providers.

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June 1st, 2018

Week’s Top Stories: May 26 - June 1, 2018

Posted at 10:13 AM ET

Terrorism Risk Modeling Poses Challenges: Terrorism risk modeling methods have been continually updated since leading modeling companies AIR Worldwide and Risk Management Solutions released their first terrorism models in 2002. Quantifying the economic, insured and human losses from terrorist attacks poses major challenges for insurers, reinsurers and alternative capacity providers.

Read the article >>


More Firms Using Captives to Finance Emerging Risks: Captive growth has not been a “numbers only” trend. Captives have spread geographically into dozens of countries, evolved into multiple forms and financed a variety of risks. Most industries now have captives, with notable year-over-year growth in the Asia-Pacific region and the largest captives becoming even bigger and more strategic.

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The 2017 Hurricane Season Was Among the Top-Ten-Most-Active, But Was Not Entirely Unprecedented: As the 2018 hurricane season approaches, we take a look back at the 2017 season. It was among the top-ten most-active seasons in recorded history since 1900 for the North Atlantic Basin.

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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 2018.

View the chart >>


Guy Carpenter Bermuda Promotes Jenni Rowntree Estis to Head of Operations: Guy Carpenter today announced that Bermudian Jenni Rowntree Estis has been promoted to the role of Head of Operations, Senior Vice President, Broking.  In the new role as Head of Operations, Mrs Rowntree Estis will oversee IT, human resources, finance and client administration services at the company and maintain administration, monitoring, reporting, communication and liaison on all company affairs with executives.

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And, you may have missed….

Wearables, Drones and the Internet of Things: The Next Wave of Workplace Safety and Claims Mitigation: The advent of connected devices and the Internet of Things (IoT) is opening exciting new doors in the insurance industry. The auto liability market has transformed from one in which underwriting relied on proxy variables such as driving history, demographics and credit scores to one in which telematics and real-time, personalized driving statistics inform risk assessment.

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May 25th, 2018

Week’s Top Stories: May 19 - 25, 2018

Posted at 10:00 AM ET

Guy Carpenter Bermuda Promotes Jenni Rowntree Estis to Head of Operations: Guy Carpenter today announced that Bermudian Jenni Rowntree Estis has been promoted to the role of Head of Operations, Senior Vice President, Broking.

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Guy Carpenter Appoints Non-Marine Managing Director: Guy Carpenter announced the appointment of Richard Carver as Managing Director and Senior Broker in the firm’s UK non-marine division. Based in London, Mr. Carver will report to James Boyce, Deputy CEO, Global Specialties. He will take up the role in May 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 2018.

View the chart >>


Wearables, Drones and the Internet of Things: The Next Wave of Workplace Safety and Claims Mitigation: The advent of connected devices and the Internet of Things (IoT) is opening exciting new doors in the insurance industry. The auto liability market has transformed from one in which underwriting relied on proxy variables such as driving history, demographics and credit scores to one in which telematics and real-time, personalized driving statistics inform risk assessment.

Read the article >>


Chart: Catastrophe Bond Issuance and Capital Outstanding: Chart shows 144A P&C catastrophe issuance and capital outstanding for the years 1998 through year-end 2017 based on data from GC Securities’* proprietary database.

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And, you may have missed….

Technology Opens the Door to Growth: Why must risk executives know about AI, Internet of Things, blockchain, and other technologies? The answer is often sitting in plain sight, from wearable technology that informs workplace risk to IoT connections that provide rich sources of data to insurtech solutions for insurance and risk finance. The promise for risk professionals who use these technologies is to proactively contribute to their organizations’ growth and performance. This year’s Excellence in Risk Management survey from Guy Carpenter sister company, Marsh, and RIMS found risk professionals welcoming their role in innovation and embracing their companies’ digital approach.

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May 18th, 2018

Week’s Top Stories: May 12 - 18, 2018

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 2018.

View the chart >>


The 2017 Hurricane Season Was Among the Top-Ten-Most-Active, But Was Not Entirely Unprecedented: As the 2018 hurricane season approaches, we take a look back at the 2017 season. It was among the top-ten most-active seasons in recorded history since 1900 for the North Atlantic Basin.

Read the article >>


Building for Resilience: How to Avoid a Catastrophe Model Failure: Here we bring together our recent multi-part series on model resilience by Guy Carpenter’s Global Chief Catastrophe Modeler, Imelda Powers.

Read the article >>


Technology Opens the Door to Growth: Why must risk executives know about AI, Internet of Things, blockchain, and other technologies? The answer is often sitting in plain sight, from wearable technology that informs workplace risk to IoT connections that provide rich sources of data to insurtech solutions for insurance and risk finance. The promise for risk professionals who use these technologies is to proactively contribute to their organizations’ growth and performance. This year’s Excellence in Risk Management survey from Guy Carpenter sister company, Marsh, and RIMS found risk professionals welcoming their role in innovation and embracing their companies’ digital approach.

Read the article >>


Exploring the Excess & Surplus Industry; E&S Market Update and Projections: The excess and surplus (E&S) lines segment of the insurance industry continues to be the essential market for risks for which  the standard insurance market typically does not offer coverage. From extremely hazardous conditions to highly unique business operations and unproven new products, these unconventional risks are often complex and challenging. The E&S market’s challenge is to develop products to cover these exposures utilizing its expertise and freedom of rate and form.

Read the article >>


And, you may have missed….

United States Reinsurance Capacity for Terrorism: In 2017, according to Guy Carpenter, the combined property and workers compensation private conventional-only terrorism reinsurance capacity was estimated to be USD 2.5 billion per cedent program. Reinsurance capacity for coverage that includes Nuclear, Biological, Chemical and Radiological, especially in Tier 1 cities and central business districts, has become increasingly challenging to secure over the past two years due to the accumulated aggregate constraints of some markets and is estimated to range between USD 500 million and USD 1 billion per program. Marsh’s 2018 Terrorism Risk Insurance Report, produced with support from Guy Carpenter, explores the state of the terrorism insurance marketplace, presenting data on purchasing and pricing trends.

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May 11th, 2018

Week’s Top Stories: May 5 - 11, 2018

Posted at 10:01 AM ET

Internet of Things: Building Cyber Resilience in a Connected World: The Internet of Things (IoT) is driving huge advances in organizational efficiency, reinventing the customer experience and spurring business innovation and opportunities. But the explosion of IoT devices is also dramatically changing the cyber risk landscape, creating new product vulnerabilities and system exposures for organizations that make or deploy them. In the new Insight from Guy Carpenter sister company, Marsh, “The Internet of Everything: Building Cyber Resilience in a Connected World,” we explore how internet-connected devices - from toys and refrigerators, to medical devices and industrial control systems - are introducing or increasing cyber risk for businesses that design, manufacture, service or use IoT products.

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Maintaining Relevance in the Age of Innovation: Technology is embedded in nearly every aspect of our lives, including in many businesses’ critical functions. The Internet of Things (IoT) ecosystem is growing exponentially, while many organizations are reaping benefits from “going digital..” An increasing number of companies are exploring the applications of artificial intelligence (AI), blockchain, and other technologies.

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Hawaii Volcanic Activity: On Thursday, May 3, the Island of Hawaii experienced an eruption in the Kilauea volcano summit. Two large earthquakes occurred the following day among hundreds of smaller quakes and some large aftershocks. There have been a total of 10 fissures confirmed so far by the County of Hawaii, with an estimated 387,000 square feet of lava spread. At least 35 structures have been destroyed according to the Government of Hawaii, and evacuations have affected at least 1,700 people. The most severely affected area is the Leilani Estates Subdivision, which is located directly in the Lower East Rift Zone. It is too early to estimate the scope and severity of impacts, and our first thoughts and concerns are with those directly affected by this active event.

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Guy Carpenter Licenses First-of-its-Kind Cyber Risk Modeling Platform from CyberCube Following Strategic Alliance: Guy Carpenter & Company today announced that its two year strategic relationship with CyberCube Analytics, formerly part of Symantec Corporation, has produced the industry’s first cyber risk modeling platform with an inside-out view of cyber risk exposure.

Read the article >>


United States Reinsurance Capacity for Terrorism: In 2017, according to Guy Carpenter, the combined property and workers compensation private conventional-only terrorism reinsurance capacity was estimated to be USD 2.5 billion per cedent program. Reinsurance capacity for coverage that includes Nuclear, Biological, Chemical and Radiological, especially in Tier 1 cities and central business districts, has become increasingly challenging to secure over the past two years due to the accumulated aggregate constraints of some markets and is estimated to range between USD 500 million and USD 1 billion per program.

Read the article >>


And, you may have missed….

2018 North Atlantic Hurricane Season: Seasonal outlook providers continue to issue early predictions for the 2018 North Atlantic hurricane season. The Weather Company (IBM) is expecting a season of near-normal activity. Earlier this month, the Tropical Meteorology Project at Colorado State University (CSU), predicted a season more in line with the 1995-2017 elevated average. Meanwhile, North Carolina State University (NCSU) issued a prediction for above-normal activity, relative to the 1995-2017 average.

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May 4th, 2018

Week’s Top Stories: April 28 - May 4, 2018

Posted at 10:01 AM ET

Guy Carpenter Licenses First-of-its-Kind Cyber Risk Modeling Platform from CyberCube Following Strategic Alliance: Guy Carpenter announced that its two year strategic relationship with CyberCube Analytics, formerly part of Symantec Corporation, has produced the industry’s first cyber risk modeling platform with an inside-out view of cyber risk exposure.

Read the article >>


Guy Carpenter Announces Senior Bermuda Promotion and Hire: Guy Carpenter & Company today announced the promotion of John Fletcher to Chairman of the firm’s Bermuda Operations, with immediate effect.

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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.

Read the article >>


2018 North Atlantic Hurricane Season: Seasonal outlook providers continue to issue early predictions for the 2018 North Atlantic hurricane season. The Weather Company  is expecting a season of near-normal activity. Earlier this month, the Tropical Meteorology Project at Colorado State University, predicted a season more in line with the 1995-2017 elevated average. Meanwhile, North Carolina State University issued a prediction for above-normal activity, relative to the 1995-2017 average.

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 2018.

View the chart >>


And, you may have missed….

Exploring the Excess & Surplus Industry: E&S Market Update and Projections: The excess and surplus (E&S) lines segment of the insurance industry continues to be the essential market for risks for which the standard insurance market typically does not offer coverage. From extremely hazardous conditions to highly unique business operations and unproven new products, these unconventional risks are often complex and challenging. The E&S market’s challenge is to develop products to cover these exposures utilizing its expertise and freedom of rate and form.

Read the article >>


Click here to register to receive email updates >>

April 27th, 2018

Week’s Top Stories: April 21 - 27, 2018

Posted at 10:00 AM ET

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.

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Chart: Return on Equity for Guy Carpenter Reinsurance Composite, Year-end 2017: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2017.

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Reliance on the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA): In 2017, more than 800 insurers wrote USD 215 billion in TRIPRA eligible premium, with a combined policyholder surplus of USD 683 billion. Considering the current 20 percent deductible requirement and policyholder surplus as a filter, Guy Carpenter’s analysis concludes that small to midsize insurers are substantially more vulnerable to the annual increases in the TRIPRA industry trigger and their overall net retentions as a percentage of policyholder surplus.

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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 2018.

View the chart >>


Cyber Insurance Adoption is Increasing: The role of insurance in enhancing cyber resilience is increasingly being recognized by policymakers around the world, and the Organisation of Economic Co-operation and Development is recommending actions to stimulate cyber insurance adoption.

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And, you may have missed….

Guy Carpenter Reports Capital Growth and Market Resilience Despite 2017 Losses: Guy Carpenter has released an estimate of year-end reinsurance capital levels and results of the January 2018 reinsurance renewal.

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